Given the severity of this recession characterized by high unemployment and low inflationary rates I believe that a two sided approach is necessary utilizing both expansionary monetary and fiscal policy would be the most appropriate remedy as proposed by Allison Tanney.
Under Fiscal Policy:
I would reduce taxation which will encourage businesses to expand and in so doing create employment. The reduction in taxation will also positively affect the disposable income of consumers thus causing total aggregate demand to increase. This is the opposite of what Kathy lee was proposing her proposal would remove money from the economy which would have a negative effect on businesses making it difficult for business expansion.
These two strategies are inflationary however due to the current negative rate of inflation there should be very little to no concern as it relates to its impact on inflation in the short term.
The government should also increase spending in the form of subsides and incentives for the creation of new businesses or to existing businesses who are expanding and thus creating extra employment in the economy. This was proposed by Allison Tanney and I totally agree with her.
Under Monetary Policy:
Under Monetary policy the president may want to consider requesting or lobbying the fed to engage in one or a combination of these strategies.
In open market operations the fed should purchase securities (bonds) in the open market thus increasing the supply of money in the economy. This is one point I agree with Patricia lopez and Allison Tanney on.
The Fed may also consider reducing the reserve requirements for banks this will have a multiplier effect as banks will be able to generate more loans; providing more capital for small business creation and expansion positively affecting the employment rate.
The Fed may also reduce the discount rate by so doing