The U.S. national debt is currently at 17 trillion dollars and growing by the minute! The government has been trying to find ways to reduce this number for years, but it just grows and grows. They have tried cutting spending, raising taxes, even printing more money (inflation). But there is one thing that they haven’t tried – stimulus packages! Stimulus packages are when the government uses government spending and taxes to affect economic performance. This article will examine how a stimulus package might work in America’s economy today and why it could be an effective solution to our problem of high debt.
The first thing that a stimulus package would do is improve the economy. When people have more money in their pocket, they spend it and when they spend it, businesses grow and hire more workers – this solves our unemployment problem! Another positive effect of stimulus packages is increased government revenue because income taxes will go up for those who are currently wealthy but not paying enough into Social Security. It’s like free money from the government to solve America’s debt problems! With these benefits, there must be some negatives, right? Stimulus packages could increase inflationary pressure by increasing demand for goods which causes prices to rise or cause bubbles to form in certain markets (housing?).
In the simplest terms, when a government uses stimulus packages to boost economic performance it does so by providing financial assistance for certain groups of people. These recipients are often industries that would otherwise be struggling or even shutting down due to lack of demand. For example: if the farming industry is suffering and can’t afford pesticides because they don’t have enough money coming in from consumers, then they might get some help with their taxes being lowered on those products. This way, farmers could sell more products at lower prices while also making up for losses with these tax breaks! Similarly – a company like Apple may receive a payment from the U.S Government as long as they create jobs within America’s borders (even if their workers were originally overseas). This is a huge cliff effect in the form of a recession.
The government could also use stimulus packages to remove some of America’s debt. The U.S Government is the largest debtor of any country in the world, and when you factor in all their debts it equals a whopping 21 trillion dollars! This number has been on the rise for decades now – and this doesn’t even include individual states with debt problems like Illinois or Ohio (they’re both at about $123 billion). States are forced to rely on help from other states just so they can stay afloat economically because nobody wants to invest there anymore; that means more unemployment rates which leads to even fewer people buying products/services, etc. It becomes a vicious cycle that keeps getting worse over time- and if it isn’t fixed soon then we could be in a depression.
At this point, it’s clear that the government and its debt are a major problem in our economy. We need to do something about it before the situation gets worse – but what? The solution might be for Congress to put together stimulus packages with economic policies similar to FDR’s New Deal or President Barack Obama’s American Recovery and Reinvestment Act of 2009 (ARRA). Stimulus packages are when the government uses government spending and taxes to affect economic performance. A package can include anything from lowering interest rates on loans, providing tax cuts, subsidizing certain industries like green technology- whatever will help keep people working so they can afford their mortgages/debts.”
FDR’s New Deal included a series of programs designed to end the Great Depression by using federal dollars for relief projects such as building schools or creating jobs through public works agencies”
ARRA was an $800 billion American Recovery and Reinvestment Act in 2009 which Barack Obama signed into law.”
The goal of these policies is not only to avoid recession but also put money back into the hands of citizens so they can spend and pay off debts.”
Stimulus packages are often criticized for creating substantial amounts of deficit spending.
The goal of these policies is not only to avoid recession but also to put money back into the hands of citizens so they can spend and pay off debts.
One criticism that stimulus plans have faced, however, is that when Congress spends more than it takes in as tax revenue there will be an increase in deficits. So far, this has been a relatively small consequence as seen by some economists.”
Another criticism that many people had about ARRA was its lack of transparency because at one point Obama’s office released those who received bailout funds without explanation or detail.”
