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What is the "current macroeconomic situation" in the U.S.? What fiscal policies and...

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yemawe52 | (Level 2) Honors

Posted June 9, 2013 at 8:38 AM via web

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What is the "current macroeconomic situation" in the U.S.? What fiscal policies and monetary policies would be appropriate at this time?

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readerofbooks | College Teacher | (Level 2) Educator Emeritus

Posted June 9, 2013 at 1:05 PM (Answer #1)

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This is a complex question. 

The current macroeconomic situation is that the Federal Reserve has plotted a course of printing money. They bailed out many banks, and other large companies, who needed help. After this, they started on a course of quantitative easing to spur the economy. As Bernanke stated, he will do this until there is more job creation. 

On the one hand this seems like a responsible course of action. Spur the economy until it is fixed. However, in my opinion, the problems of the economy are being kicked down the road. The fixes are not real fixes. For example, if the problem is that banks are too big to fail, they are bigger now. The problem has been compounded.

In my opinion, certain companies should go bankrupt. They can reorganize under new leadership and correct the problems of the past. 

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