Milestone ~ Final Project
The current administration’s economic policy
Definition
Economic policy refers to the actions that the current governments in their respective countries take to influence as well as to control how the economy is presently behaving. This caters for the settlement of operating interest rates as well as the countries budgets that are suggested by the governments. This in return has two roles to play in the field of economics, which is, to ensure economic growth and maintain tax revenues collectible amounts. In addition to this, economic policy stimulates other indicators of the economic boundaries as well, according to the economic periods that influence the manner in which the economy operates in the economic field. Depending on the economic period, the governments in their respective countries tend to alter their economic policies to protect certain interests that could benefit the government as well as the citizens.
Discussion
Though the country has made attempts to enable it recover from a period of recession immediately at the end of the World War II, it still experiences some challenges in its economic growth. The realized economic growth rate at which its current sectors in the economy have been growing at has been estimated to be almost half of any other rate that has been recognized during the recovery periods. The recession period ended in 2009, and since then, 2.4% has been the estimated growth rate in the economy (Smith, Kellstedt & Goth, 2009). To address the issue, some economic policies have been implemented to ensure that the economy recovers from recession at attains a higher growth rate in all its sectors. The policies that have been suggested to be effective are the Keynesian policies, which are different from the applied policies during the great moderation period.
The bible prophesies that the economy would collapse in the last days. Though not mostly addressed by the media as well as governments, the bible calls for those who have been made too blind by the two parties, the government and the media, to open their eyes wide and see the fulfillment of these prophecies. It states that the last days would be characterized by the the collapse of the world economy, which will consequently attract superpowers and wars. Martial law on the rich elites as well as impoverishment would be seen. In these days, even the wealthy nations, like America, China and Japan are experiencing lapses in their economies, fulfilling what was prophesied (The Bible).
According to Gwartney, Stroup, Sobel and Macpherson, business cycles have frequent rising and falling of the prices of the stocks in the market commonly known as inflation and deflation respectively. Another indicator of the poor economic situation currently in the country is the high ratio of the debts of the households to their income in their hands (Gwartney, 2009). Irrespective of the traumatizing situation, America has been on top in its economic growth making it a superpower globally, which is another fulfillment of the prophecy from the bible. The main role of the Keynesian policies that have been adopted currently is to heighten the impact of the multiplier regarding fiscal policies. Nevertheless, these efforts do not improve the situation to a great height. This is evidenced by the fact that the multiplier of what the government has been spending is always below one (Gwartney, 2013).
References
Gwartney, J. D. (2009). Economics: Private and public choice. Australia: South-Western Cengage Learning.
Gwartney, J. D. (2013). Microeconomics: Private and public choice / James D. Gwartney. Mason, Ohio: South-Western Cengage Learning.
Smith, C. E., Kellstedt, L. A., & Goth, J. L. (2009). The Oxford handbook of religion and American politics. Oxford: Oxford University Press
The Bible, NIV Version.