What is the current state of U.S. fiscal policy?

Question

What is the current state of U.S. fiscal policy? Would you advise the United States to change its fiscal policy? Why?
...need help w/ this question for my final paper in MacroEco

Answer 1

Fiscal policy is a fuking disaster.

Hopefully, you learned that most spending is nondiscretional spending, which mean Congress can't really change it (most of this relates to social programs). This further dilutes the effectiveness of fiscal policy.

Even further !!!, there is an external lag......in other words, there is a lag between when fiscal policy is enacted and when the effects kick in.




Is it any wonder that politicians bicker about unimportant bullshit and let the Fed take care of business?

Answer 2

Ok. You still havn't been more specifific about the context of your paper, so it's a little difficult.
You see it all depends what you've been taught.
I think you will probably be required to comment on the two most significant effects fiscal policy has on the economy.
One (and this is probably what thay are asking for) is the effect on stabilistaion policy. This is often constucted in terms of economic growth in the short run. Generally you will probably be expected to take a deficit as stimulatory and a surplus as contractionary. That is the way they tell it in first (freshman) year, although it is completely wrong. More truthfully only changes in spending have effect and then it all comes down to the rate of change. Also in truth the Fed reacts almost instantly to counter any changes in fiscal policy. The the best models (as are taught) in third year will show that fiscal policy only really effects interest rates, the value of the $, and national saving. If it were up to me I would cut spending to the bone and save, save, save, but that's probably not the answer their after. Sorry but no one can help you unless you give more of a background on what subject you are doing, which College you attend, which textbook you use and who your teachers/markers are. That way we can have a better idea of what crap they want you to spin.

Zruger whtever has a good answer but it might not be what they want.

Answer 3

Go to Federal Resevere website grow economy, but not let inflation get out of hand, and have open fuild markets for money. Untied States will over time has control of fiscal policy because of China, and India growth. The Chinese hold lots of American dollars, and """Do not raise traiffs on Chinese made products""", because it will drive comsumption down, and the Chinese will raise maniuplate the currency more. Paulson, Bernake playing it smart with the Chinese because we dont want protectism or a nasty trade war.

Answer 4

We, Bolsheviks, are very pleased with this unstoppable worldwide disaster.we are fermenting unrest around the worldwide. that's this technique our activists are heralding on all worker´s agencies. appropriate demands that could articulate the worldwide over the conflict are * For the expropriation of the banks without reimbursement and under workers administration * Sacking of workers and destruction of jobs ought to been forbidden; occupations of the web content of paintings that close, beginning of the books to workers administration, for expropriation of the huge agencies, without reimbursement under workers administration * for instantaneous will strengthen of wages and salaries, for a sliding scale of wages and dealing hours; much less paintings, paintings for all! finished wages for the unemployed! finished equality for immigrant and local workers! * Down with the capitalist governments! No to classification collaboration or participation in coping with the disaster including the representatives of capital, for workers potential- the dictatorship of the proletariat- and a socialist way out from the disaster! * Down with imperialism, its wars and profession! Imperialist troops out from Iraq and Afghanistan! Dismantle NATO and all imperialist bases! Down with the imperialist eu Union, for the United Socialist States of Europe! For the socialist cohesion of Latin united statesa.! For the worldwide Socialist Republic! we are greater effective than happy!

Answer 5

spend now, pay later