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National financial policy programs to address problems.

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Which national financial policy programs are best for addressing the problems in the US economy today (unemployment and recession)?

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First we'll address recession, and the national policy programs that are the most effective during times of recession, and that have shown current success. One of the most effective ways to fight against recession, even when the country is in the middle of a recession, is to introduce a stimulus package as national policy. This is what happened during the 2008 - 2009 recession, and it is again under consideration for 2012. Many states have continued to receive stimulus checks, which mainly were received in the states that have maintained the lowest income levels and that have been slower than the other states to come out of recessionary status, when judged on economic factors alone.

Essentially, stimulus packages are effective because they put money back into the economy. The President signs a stimulus package for billions of dollars. The 2008 act alone cost over $152 billion. When a taxpayer files their income taxes, the stimulus generates a tax rebate, which means that even if the taxpayer owes money, the taxpayer still gets a check in the amount of the stimulus payment, as money directly to the taxpayer, regardless of other tax circumstances. The idea of the national policy program is that the taxpayer then takes that money and spends it. It goes directly back into the economy.
When this happened in 2008, many taxpayers used their stimulus checks to catch up on mortgage and rent payments, to pay bills, to buy groceries, and so on. The stimulus puts ...

Solution Summary

The solution explains which national financial policy programs are best for addressing the problems in the US economy today (unemployment and recession).