Assignment -- Fiscal Policy

Running Head : FISCAL POLICY

Fiscal Policy

Author

Institution

Professor

Subject

Fiscal Policy

The current economic state of the United States is quite alarming because of the recession that surprised most of the economist and politicians . The recession being experienced within the United States greatly affects the economic activities within the country , as well as the countries that are dependent on the American economy

The American recession largely affects the businesses around the world because a large part of the world economy is contributed by American investments

. It is speculated that there will be a global recession that will happen probably next year . The International Monetary Fund (IMF also speculated the same theory in the next twelve months wherein the economies of the other countries will be greatly affected (Stewart 2008

Countries that are largely dependent on the United States will suffer the most as they are also affected by the crisis on the major economic activities of U .S . This can be prevented if major economic reforms are put into motion in to save the economy of America . One of the actions taken is the U .S . bailout program . More of this programs and policies are needed to uplift the economy and sustain its stability

Source : Ritholtz , B (2009 . Job Losses in Post WWII Recessions Calculated Risk

The American economy is largely dependent on its consumers , who serve as the main engine in running the economy . With the fiscal crisis lurking behind , there occurs consumer retrenchment that drives the...