Writing Assignment

US ECONOMY (Institution Name (Department Name (Students Name (Students Number (Instructors Name

December 7 , 2008

Introduction

What is ailing the US economy at the moment is almost similar to the great depression they say . With a new president waiting to take over office , he faces the biggest challenge in the form of resurrecting the economy . His success in saving America from another depression will be written in history books . Now the question is how can he make history by saving us from the looming danger ? This offers advice to the president

elect on some of the best macroeconomic tools he can use in enhancing economic vitality at the moment

Fiscal policy

Some of the fiscal policy measures undertaken by the current Bush administration have been the cutting of taxes to increase money supply in the economy for consumption . This is intended at increasing consumer demand which will trigger increased production by firms as they step up their production in to meet the increased demand . According to Hailstones (2000 , the idea is meant to increase employment levels and trigger growth of the economy through the multiplier effect . Though the Bush administration seems to be doing the same the stimulus has not been enough . He says that the outlay needs to be large in for it to be effective . Tax cuts have had their most minimal effects . Economic theorists suggest that expansionary monetary policies such as tax cuts and increased government expenditure are the best tools for fighting a...