Question

My Homework:

look at any one topic covered in the discussion boards making sure the topic generated a lot of interesting class participation. Re-read the comments of your peers and your original post: what do you think about the issue now? Has the conversation changed your view point or only strengthened it? Why?

Finally, what are the things you can take away from the course overall? Are there specific concepts and ideas that were eye-opening to you personally? Do you think you were able to meet the course goals and course objectives as described in the first few pages of this syllabus?

Q.Are you in favor of or against government intervention ('doing something' or 'Fiscal Policy') to help an economy get back to full-employment output? Should we spend government revenues and reduce taxes in times of crisis to help stimulate the economy, facing the consequences of an increased deficit? In our current economic recovery, do you think too much was and is being done, or too little? Why? Is there a policy you would recommend for more rapid job growth? In Boston? In MA? In the USA?

peer's answer:

As we all know by now, economy fix itself in the long run but as John Maynard Keynes once said " In the long run we are all dead'". I'm in favor with government intervention. Sure the economy will eventually fix it self in the long run but that can take years or even decades. Us, the consumer can't wait that long for economy to fix itself. Whether it's an inflation or rising of unemployment Fiscal Policy is there to help with those gaps so our economy don't reach that. I know fiscal policy has its ups and some down, I would say it's better to know that the government is doing something about it.

In a recession, I think increasing government spending and lowering taxes helps the economy. Government spending includes constructions means jobs. And when there's job and lowered taxes consumers will spend. It will lead GDP to go up. But the loan US have will just kept on going up because tax collected was little.

With all the risk there is I think the government did enough for the recent recession but in our current economy, I know the government should do more. In just October of this year, the unemployment rose by 250,000. The economy need more jobs. More jobs more gdp.

I don't have a policy in mind for a rapid job growth in MA but I like the idea of finally building a casino here in Boston. Just imaging all the jobs that it will offer to us here in MA will help our economy it will boost the gdp higher.

Answer 1

I agree with friend's opinion. Any govt. cannot be a mere spectator when economy is having a demand side or supply side shocks. By the time market corrects itself there will be many families which will be broken down. Especially during recession govt. plays a pivotal roole. Ex. US recession in 2008 could be successfully fought with the help of US govt. policy of tax concessions, Federal policy of cheaper credit. Some people may even argue that it all started due to reckless financial behavior of corporates especially banks. Hence govt. intervention is needed at regulatory level and at correcting failures also.