What are some of the public economic policies currently being used to stabilize our economy?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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There are many public policies that are being used (or at least proposed) as ways to stabilize our economy.  Two of the most important are government spending and tax cuts.  These are classical Keynesian ways to try to stabilize an economy.  If Mitt Romney becomes president, different policies will be tried.

President Obama is trying to use government spending, along with some tax cuts and some tax increases, to stabilize the economy.  He believes that the government should spend a great deal of money to stimulate demand.  He wants to use money to create jobs and to help those who cannot find jobs.  The recipients of the money would spend it, thus creating demand and more jobs.  The same applies to the President's ideas for taxation.  He wants to lower taxes on the middle class so they will have more to spend while increasing taxes on the rich to give government more money to spend for the programs mentioned above.  These are the major economic policies now in use to try to stimulate and stabilize the economy.  

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