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In order to improve the overall economy and lower the unemployment rate and correct inflation the government needs to adopt the expansionary monetary policy. This policy incorporates ideas to jump start the economy again.
Lowering interest rates will help improve employment. Having lower interest rate will encourage consumers to buy and spend money. For example, lower mortgage rates will make people more inclined to buy a house. Many future home owners would consider buying a home when the rates are low because it will lower their payments compared to higher rates. An increase in home purchases would help improve the economy. In addition, low interest rates for business loan will help encourage businesses to expand their company. Borrowing money at 1 percent would be a no brainer for business to grow their company. Also interest rates have a significant role when businesses use a bank line of credit. If a company can borrow money on at a lower interest it will help their overall net profit because their interest expense would be lesson. To improve unemployment rates it starts with the small businesses. Lowing interest rates can have considerable positive effect with decreasing the unemployment rate. .
Also I would lower the exchange rate for foreign exchange. If we lower the exchange rate more countries would decrease the imports to the US thus leading the US to export more goods to other countries. By exporting goods it would lead to more jobs for the US. The demand for good in the US would
I not recommend raising tax be to reduce the deficit. People cannot understand the bigger picture the benfits from higher. They will understand that taxes are increase and their disople income is going to drop. I believe it will have adverse effect on the ecomoncy. Rasing taxes will cause American’s to save more than do now and inturn customer spend will drop significantly . The economy needs to spend money in order to improve emploment. Spending will...