You Decide - Project Paper

You Decide - Project Paper

Raymond Burke is an economic consultant who believes that the nation’s interest rate should be lowered in order to stimulate the economy. Unfortunately, I must disagree with Burke. With a presence of the overabundance of cheap houses and a lack of demand will not enable the nation to recover with better interest rates. The majority of people that are capable of working but are not working are at a serious incline. The average person does not attempt to borrow money that can’t be re-paid. With the unemployment rate projected to increase, I don’t see a line of people ready to borrow money when people are without income to pay it back. My recommendation is to leave the interest rate alone, don’t increase it or decrease it. Kathy Lee’s view on the budget deficit has an emphasis on the government implementing budget cuts instead of raising taxes. The budget deficit is a serious concern; this is why I must agree with Kathy’s view. My recommendation is to agree with Kathy’s view. The reason is that people have already cut back on their spending. The awful result of higher taxes makes an already slow economy turn into a halt. Patricia Lopez is a Federal Reserve consultant makes two excellent points: to leave interest rates alone and furthermore, increasing money supply through voluntary investments (by the sale of bonds), always goes over much better that feeling increased taxes. Banks that have higher reserve requirements would not need to bed the government for future bail outs. Allison Tanny suggestions seem to keep the recession alive and well. Not to be harsh on my position, but frankly Tanny’s suggestion allows for a larger government and lower taxes means adding to the deficit. American tax dollars were spent in the billions for stimulus without any major