Describe a sluggish economy

Reference no: EM13184325

A sluggish economy with :

1. Looming Debt/ budget deficit.

2. High Unemployment.

3. Low Inflation rate from recent recession.

What kind of Fiscal Policy can we propose? "We have to be mindful of the risk that can take place from expansionary/contractionary policies."

(With only Fiscal Policy allowed)

1. Spend more on renewable energy. (increase jobs/ depend less on exports?)

2. Reduce health care for preventative. (maybe support medical student?)

3. Rehabilitation of prisoners that have non-violent offenses. (Lower gov't spending/ debts?) My group also thought about legalizing marijuana.

"Though I'm against it for personal (Veteran) reasons. Majority of the drugs we found in Afghanistan were used to finance terrorist group.. although legalizing it would mean..less income for the terrorist and raise gdp? So I'm not sure."

4. Give incentives/ tax breaks to American companies that use American goods instead of foreign exports. (Increase GPD?)

Reference no: EM13184325

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