Economist, How would you stimulate the economy to give it a boost?

Question

Given everything that is going on in the housing market, and our economy being at the beginning of a recession, On a economic standpoint, what would you do to correct the problem, first as the chairman of the FED, second as the President? I know no one owes me an answer but am curious what everyone believes...

Al B, how would we pay off our national def...

Answer 1

start a war...o wait they did that

Answer 2

I think the best thing would be to redistribute wealth from the super wealthy. It's absurd the salaries and benefits collected by corporate heads. I'm not talking millionaires. But Bill Gates, with something like $70 Billion gives a couple million to charity and they act like its a big thing. That is comparable to me fishing a nickel from my pocket. I recently saw a survey where Americans are believing the nation is becoming increasingly haves and have nots. Probably the best way to accomplish this is to have stock options for employees throughout all industries. That sort of thing was done after WWII and had much to do with the economical boom. And noting is better for the economy than every working person to have a share in its prosperity. As far as the housing crunch. They overlook an even bigger shortage. That being rental housing, especially affordable. That is in much shorter supply than people who can afford to buy.

Answer 3

Use an expansionary fiscal policy, eg.
-lower taxes
-increase government spending
or, of course, use a combination of two.
Take a look at the marginal propensity to consume of the economy and use the investment and tax multipliers to minimize the amount of change to push the economy towards full employment.
To curb inflation wherever it might be you want to hold onto that deficit rather than buying back bonds, because it will limit the purchasing power of the the economy or certain markets and prevent inflation.
Personally, get rid of all the loopholes in the tax rate system for the upper classes and wealthy interest groups.
It's a weighty job.

Answer 4

If I had money to spare, I would pay off all of my debt and pay all future bills with cash. I would not use credit cards. I would lower the pay of corporate head-honchos and give raises to the employees with the lowest wages. If I were the president I would raise the minimum wage by at least $5. I would create a better welfare program that enforced employment of some sort. There are too many people living off of welfare. People with disabilities and new widows and widowers have rightful claims; but there is ALOT of abuse out there! If possible, I would create jobs in all communities that involved the improvement and beautification of our environments. We need people cleaning, planting and protecting our environment. It is a good investment in our future.

Answer 5

1. Repeal NAFTA (North American Free Trade Agreement). This one thing, that was passed back in the mid 90's, has sent most of our jobs out of our country, making it very hard on people who don't have a college degree to get a job that will support their family.

2. I agree with the other fella that says to stop foreign aid. Many of those countries owe us boo-coo bucks, and have no intention of paying us back. If they want help from us, let them trade us in kind...their goods for our money. No goods, no money.

3. All elected government employees would have a set pay grade, have to live in barracks-style housing during their service, drive military vehicles to and from work, and not expect to be treated any different than any other American. What ever happened to "civil servants"? Many of these people (I'm talking congress people and senator people) get away with lots of perks, all at taxpayer expense. I will concede, though, that the very top leaders deserve to have protection, provided by our military.

3. Drill for oil on our own lands, and tell the oil big-wigs to go pound rocks with their high-priced oil.

4. Keep the government out of the back pockets of our nations companies, and let our companies do what they do best...make money. If business is booming, they'll have to hire more people.

5. America used to be self-sufficient, and more than able to take care of herself, and much of the world too. We need to get back to taking care of our own home-fires, and strengthen our borders. If we only hire people who went through the system legally, we could make sure that shady employers would straighten up and fly right. Too many of those employers depend on illegals to make them a big profit, not profitting the illegals at all. I know this is a hot topic right now, but this has to stop, before this country goes down in flames. While the illegals think they're getting a big benefit in having a job here, they're really short-changing themselves of a much better life, if done properly.

I'm sure I'm probably missing some other noteworthy ideas, but they escape me right now...it's late and brain just ran out of thinking power. All I know is that we have to get back to where we were...when we were stronger, and getting the job done. <*)))><

Answer 6

1. Abolish all personal income tax

2 Establish a tax on profit regardless where a product is made or grown with tax credit for expenses such as wages,, transport, and the like

3 Abolish all foreign aid to other countries - if we feel a country needs our aid, give tax incentives to companies to establish plants there to hire local people to create a product

Just abolishing the personal income tax would bolster the economy and the tax on profit would make up for the loss of income to the nation.