Question

Identify a major national economic problem that needs fixing. Consider how you would measure the relative success of any measure(s) to fix the problem you identified (e.g., more people being put to work, higher household income, fewer people under the poverty level, increased GDP, greater economic growth, higher overall math/science achievement among high school students, lower pollution, etc. - MAKE SURE you come up with a few of your own measures!). Now, propose fiscal and/or monetary policies to fix the problem you've identified and explain IN DETAIL how you believe your policy recommendations would remedy the problem you identified AND how you would measure the relative success of YOUR economic policy recommendations.150-200 words

Answer 1

The major national economic problem that needs fixing is unemployment. It is a major problem as many of the people do not earn sufficient to have two times meal. It makes the standard of living worse for the population. It can be improved by putting majority of the people at work.

Few of the measures which can be taken in order to solve the unemployment problem are :

• Increasing FDI from the foreign investors : Government can encourage the FDI from foreign investors like Walmart, Ikea furniture in the country which can provide employment opportunities to several people.
• Reduce the import of goods and promote domestic products : Imported goods are produced outside the country and thus should be discouraged, whereas domestic products which are produced by local population should be encouraged as it offers employment opportunities to the local people.
• Expansionary Monetary Policies : Central Bank should reduce CRR and Repo Rate and thus more loan amount should be given to the population. This would in turn encourage the investment in Start ups and offer employment opportunities. A single start up like Uber Cabs and Ola Cabs offer employment opportunities to thousands of people.

The policy measure would make multiple job opportunities available for the population and thus should be initiated. The success of these economic policies can be measured by taking a count of the increased number of people whco are at work after implemneting the new policy.

It can be measured as :

Number of employed people after the implementation of the policy - Number of employed people before the implementation of the policy.

If there is a significant increase in the number of people at work, then the policy is considered to be successful.