Question

If you were the Economic Advisor to the President what would be your recommendation on nation's both domestic and international economic policy. Make sure you make economic nor emotional arguments regarding economic policy.

• You have to read and gather information concerning economic developments and economic trends, both current and prospective. Then analyze and interpret current economic developments, review programs and activities of the Government.
• You can provide recommendations for national economic policy to promote employment, production, and purchasing power under free competitive enterprise.
• Discuss if such developments and trends are good for economy or not and how can country achieve better if you suggest any new policy.
• Discuss if national economic policies to foster and promote free competitive enterprise, avoid economic fluctuations, increase employment, production, and purchasing power;
• Discuss how to develop the US economy. You can discuss on the following points but not limited to- Booming Stock market, corporate investments and wealth creation; Job or employment opportunities for better futures; Needed tax cuts and reforms; Stronger businesses in different industry, startups, small business, Education

Answer 1

United States has already given a fiscal stimulus package of $2.3tn which amounts to (11% of GDP) which is mostly aimed for the domestic economy. Thus the government should spend more on international measures once the lockdown is lifted and the economy needs to jump back for business. Exports driven funds would create a buffer during that period. The government has also deployed the fiscal stimulus package for healthcare workers and to provide unemployment benefits and give jobless claims.

It could help restart production and increase employment by implementing free of cost liquidity facility so that firms can entail money for a short period and can repay with minimal charges to financial institutions. It could help increase purchasing power of households and firms through the things they are selling

Large scale unemployment and credit unavailability are harmful for the economy as everything is already closed down. In order to pick up one needs strong impetus, thus while the economy is opening, forbearance of loans and guarantees can be pushed for 2-3 months in order to help get the working capital on track.

National economic policies have indeed helped increase employment and production levels as can be seen from the recovery after 2008 financial crisis. Availability of money led to growth in demand for goods and services.

This could lead to better future and growth prospects. Improved consumer and investor sentiment which could drive investments. Tax cuts and moratoriums could be extended until the tide overcomes.