Monetary vs. Fiscal Policy
With the onset of the "Great Recession" and its aftermath, U.S. Government institutions unleashed a torrent of fiscal and monetary policy activities designed to forestall an economic calamity. Two years after the official end of the recession in July 2009, fiscal and monetary policy levers are still active in their attempt to jumpstart an economy that has been anemic in its growth rates and slow to add private sector jobs. Fiscal and monetary policies are critical to engendering an environment in which individuals and business can work, save, and invest and thereby advance the economy in aggregate.
Fiscal and Monetary Policy and their Influences
"Fiscal policy refers to the government's choices regarding the overall level of government purchases or taxes" (Mankiw, N.G. 2009. P.371); while monetary policy is concerned with "decisions by policy makers regarding the nation's money supply" (Mankiw, N.G. 2009. P.232). Fiscal policy tools impact the economy in the long-run by "influencing saving, investment, and growth" (Mankiw, N.G. 2009. P.371), and in the short-run by altering "the aggregate demand for goods and services" (Mankiw, N.G. 2009. P.371).While fiscal policy can shift the aggregate supply curve, its foremost use is to directly or indirectly alter the aggregate demand curve.
An expansionary fiscal policy which indirectly influences growth might involve a reduction in marginal tax rates in the economy, which would allow individuals to have more disposable and discretionary income. As such the aggregate demand curve would shift outward...
In this case, individuals are entitled to produce goods and services to meet their human need instead of private profit (Wolff, 2012). Prevention for Power and Privileges under Social Contract: While social contract provides power and privileges to all members of the society, ordinary people are usually prevented from executing the power and privilege that they are entitled to through various ways. Some of these ways include the state's legitimacy claims
Also, a very liberal strategy like the one that Mexico took after the NAFTA agreements is dangerous to a newly independent state. Extreme liberalization worked well for Mexico because a large and confident Mexico felt like it could benefit greatly from increased trade and labor transfer with the United States, without being pushed around in the agreement, and Canada helped to maintain neutrality. The Joyan Islands, on the other
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Lobbyists may accost legislators to directly influence their vote on a certain issue. Lobbyists fulfill the important role of providing information for legislators' decision-making, educating and forming public opinion, and even contributing to and testifying to certain legislations. Lobbyists are mostly involved in the electoral process through the use of political action committees (Magleby et al.). Creating the Constitution The original framers designed the Constitution for ordinary people who were not
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