Current state of the U.S. economy?

Question

What do you think are the most important macroeconomic concerns in the U.S. currently? What monetary and fiscal policies would you recommend be followed?

Answer 1

The US economy is currently not in a recession according to the definition of what a recession is.  However, our economy is still not doing well.

What should be done is for the President (Obama or McCain or Bush...though for the last two I don't think they would do so) to raise taxes for the rich.  we also have to work with our commanders on the ground (Iraq, other places) to bring stability to Iraq and Afghanistan so that we can stop spending so much in both countries.  We also need to give tax cuts to the middle class.  They need them to help deal with economic problems and such.  They will also likely use them to spend (if the tax cut is large enough).  That will help a bunch.  It would get people buying more and will help the economy as well as making it better.

But they need to be careful.  There isn't much the FED can do.

They can't raise interest rates.  It'd just make the mortgage and credit problems worse- harder to repay the debts.

They can't lower interest rates.  Bank accounts wouldn't grow.  Furthermore, there would be other problems too- the economy wouldn't be helped. Plus, inflation would rise further.

So, the monetary policy that can be used...well I can't think of any.  The FED can't do much to help, and I'm sorry if I didn't help ya- I know my answer didnt have that many solutions.

Answer 2

we are in recession ryt now. what are fiscal policies?

Answer 3

not so good

Answer 4

i don't know

Answer 5

what is macroeconomic and a fiscal policy?

Answer 6

Number 1....stop the pork barrel lawmaking. Yes, I know funding for a two man operation saving dinosaurs is important but come on.

Number 2.... stop the spending now. Run the fricking country as if it is your household....outta money...make do.

Number 3....stop the corruption of our elected officials. No more payoffs....no more perks. As if a politician cannot make a living on what WE pay them.

Number 4.....bring back jobs. The middle class has lost so many manufacturing jobs it is truly scary. When I graduated high school I had my pick of where to go to work. Sure it was not a million dollar a year job but it bought a house raised the kids and paid taxes.

Just a few things that need fixed.

As far as fiscal policies....as stated above.....run the country as if it was a household. No money? No party.

The subprime fiasco reminds me of the thirties....a bunch of fat cat bankers trying to get rich off the working people. Guess what....they are tapped out because of fuel and food costs. Not bailing out Bear Stearns might have caused havoc but maybe that is what is needed.  I am sorry I vented but I get tired of it. Have a good day all.

Answer 7

The price of oil will hit the US economy really bad since every aspect of society is based on petroleum. It can't really do anything about it except invest massive sums of money into alternative energy. Even if that happens it would make a difference for another 5-10 years. The debt should also be repaid so that the value of the dollar goes up and the price of energy goes down.