US EConomy

US economy is a very touching issue to all. If anything, it affects everyone directly and indirectly. Following the great depression of 1930’s, recession was seen as the greatest economic threat. This is a period where slow economic growth and high unemployment is experienced. To strengthen the economy the government used to spend heavily on itself or cutting taxes to encourage consumers to spend more hence foster rapid growth in money supply. Strong fear of inflation in 1970’s led to government to concentrate more on inflation than recession. They began to limit spending, there were no tax cuts and there was increasing growth in money supply.
It is no doubt that some past experiences on the economy have taught the economist what to avoid in future like the mistakes of the great depression, so we don’t go back to the same crisis. We are currently in an economic crisis numbered by many mistakes. Fortunately or unfortunately, we are heading to the polls as the election approaches in just few days. We carry deep fears about the economy and how the next elected president will further us away from this crisis. We have to choice wisely bearing in mind the warnings about the potential fallout of Obama and McCain presidency each with their different policies on how to save the economy.
Economy is done under certain policies. In 1960 the government used the fiscal policy, which they seemingly had great faith on. This is influencing the economy by manipulating the government revenues. The downside was: high inflation, high government deficit and high unemployment, which weakened the faith on this policy. It was then that the monetary policy became prominently used.
The two candidates have their policies, but can we be sure that the economy will be safely returned to normal and even improved. Experts say the candidates tax plan won’t narrow the income gap and don’t have high priorities on budget deficit and other long-term issues. Barack Obama is accused of being a socialist while McCain allegedly want to further enrich the rich. McCain has attacked Obama that he wants to ‘spread the wealth’ by raising taxes on high income Americans though he himself has not publicly rejected the progressive tax system requiring the wealthy to pay a larger share than the middle and lower class. On the other hand, obama has not publicly rejected Reagan’s economic doctrine that he attacks McCain for where the high taxes ultimately affect the middle class. Either way the American voters have a great deal of risk on who they want to be the next president of America. We can only hope for the best.