Verified Document

American Economy As An Economic Term Paper

This would in turn pick up consumption and, eventually, bring the country out of recession. Further more, by decreasing taxes, the U.S. Congress would target both individual households and businesses. In terms of individual households, with lower taxes, people will be more likely to spend, because they would dispose of a greater income. This would increase aggregate demand and bring up consumption, which would in turn stimulate the economy out of recession. The businesses would find more income at their disposal to invest in the development of their businesses and would stimulate them to target new projects as well.

Both measures of fiscal policy would thus have as final goal the increase of aggregate demand,...

As we can see, both of these measures are taken a priori in order to counter any potential apparition of an economic recession in the near future, not necessarily because recession exists at that moment (the economic results for the 2nd quarter in 2007 are quite strong, at 3.9%, but the mortgage crisis could trigger a recession).

Sources used in this document:
Further more, by decreasing taxes, the U.S. Congress would target both individual households and businesses. In terms of individual households, with lower taxes, people will be more likely to spend, because they would dispose of a greater income. This would increase aggregate demand and bring up consumption, which would in turn stimulate the economy out of recession. The businesses would find more income at their disposal to invest in the development of their businesses and would stimulate them to target new projects as well.

Both measures of fiscal policy would thus have as final goal the increase of aggregate demand, which would in turn increase GDP growth and take the country out of the recession.

The Federal Reserve did indeed lower its interest rate by 50 basis points to 2-1/2 points on October 2, 2001, after the 9/11 attacks, while the White House announced, on October 11, 2007 that it will keep taxes low to avoid the country entering a potential recession following the mortgage crisis on the market. As we can see, both of these measures are taken a priori in order to counter any potential apparition of an economic recession in the near future, not necessarily because recession exists at that moment (the economic results for the 2nd quarter in 2007 are quite strong, at 3.9%, but the mortgage crisis could trigger a recession).
Cite this Document:
Copy Bibliography Citation

Related Documents

American Economy 1950s Consumer Culture
Words: 1521 Length: 5 Document Type: Thesis

Thus, a couple -- Tom and Betsy Rath -- are stuck in the middle trying to find real meaning in it. Living in suburban Connecticut, their three children are addicted to TV and show no real interest in the life around them. Tom is the epitome of the discontented businessman, who is forced to work to pay for the new middle class suburban life. Despite his hard work, he

Economies Economic Growth in East
Words: 1700 Length: 5 Document Type: Term Paper

"Both the U.S. side and the Mexican side replicate the political, economic, social, and cultural systems of their respective nation-states. At the same time, borderlanders have blended the structures, institutions, and life expressions of the two societies to create something novel and entirely theirs -- the ambiente fronterizo, or borderlands milieu. Today the area stands as a prime example of binational interdependence, providing striking evidence of the trend toward

American Economy Has for Decades
Words: 634 Length: 2 Document Type: Essay

The tragic events of 9/11 revealed a strong economy, capable of regaining from a blast. After it however, the Bush administration fought hard to eliminate terrorism and most of the state funds went to the military; as a result, the United States is now struggling with its highest federal debt. Natural phenomena, such as tornados and hurricanes, have also had negative impact upon the economy. Effects first effect upon the American

American Economy After September 11,
Words: 2140 Length: 7 Document Type: Term Paper

Another trend that makes the American economy seem weak after September 11th is a change in spending habits. Many economists attribute a change in retail spending to the aftermath of September 11th when really it mostly reflects an evolution in the retail industry. Over time the American consumer's needs have changed and so have the demographics. For instance, "women are the driving force behind retail purchases" (Six Months, 2002) as

American Economy Has Overcome Many
Words: 589 Length: 2 Document Type: Term Paper

Terrorist threats have been a major problem and challenge to the American economy. This is because the stability of the political condition as well as the political relationship of the U.S. To other nations is where the American economy bases a large part of its economic state. Therefore, terrorist threats greatly affect the flow of investments in the U.S., driving away possible investors in fear of not getting the right

American Economy Goes Through Temporary Periods of
Words: 1078 Length: 4 Document Type: Term Paper

American economy goes through temporary periods of expansions and subsequent periods of decline. In many instances, the results of this over optimism or severe pessimism are due primarily to human emotion. It is human nature to become worrisome or risk averse during periods of extreme pessimism. Likewise, it is human nature to become over excited about future prospects during periods of extreme optimism. At some point however, both the

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now