Examine the cause of the proposed economic stimulus package implemented by Executive and Legislative branches and its failure to achieve the desired GDP and the reason for its shortcomings, if there are any.
In this assignment we are to examine the cause of the proposed economic stimulus package implemented by Executive and Legislative branches and its failure to achieve the desired GDP over the past 18 months. While the expected result fell short of the expected GDP prediction by 25% there must be extenuating reasons for this. The proposal was for increases in government spending in the areas of defense, education & infrastructure. While these are all important areas of much needed spending our economy's problem is the tremendous increase in inflation and the steadily increasing unemployment rate which is currently 6.2% as of September 27, 2008 (an increase of .1% in just 8 days). With this inflation spike little could be expected as far as change without directly attacking the cause of the inflation, which happens to be the tremendous spike in oil and fuel costs. Education, an extremely necessary investment for our country, is more of a long term effect for our economy which cannot be realized in a short 18 month time frame. Defense spending, while important to national security and possibly creating some much needed jobs, does little to attack the cause of this recession. Increased funding for the infrastructure does not make too ...
The expert examines the causes of the proposed economic stimulus packages.