Federal Reserve System and u. s. Essay

Submitted By dbg12
Words: 1095
Pages: 5

In the U.S. we have key values that make our role with other countries what it is. One of the key values is maintaining peaceful relations with other countries while being a more powerful and stronger country in military and economic powers. The U.S. should provide military assistance in countries throughout the world, and provide less foreign aid to other countries. The role of the U.S. should be to maintain the balance of power and to preserve the best economy. The U.S. should be active in countries who are a threat to the the U.S. or our allies by giving them military support or protection.The U.S. should also be actively involved in trade and not provide countries with as much foreign aid except to the ones who will benefit the U.S. These values should serve as the bias for U.S. because it makes the U.S. stable with power in the world and creates a healthy economy. It protects our homeland and also foreign aid can lead to more allies.

The United States government is currently involved with many other countries and is actively providing foreign aid, including military, economic, and political assistance. The U.S. is not particularly selective in how it spreads its aid. In 2010 151 countries received foreign aid from the U.S., and in 2011, that number barely changed with only Qatar and Tonga dropping off the list. Afghanistan, Pakistan, Iraq and some other countries consume a very large portion of this assistance so the U.S. can keep peace. This assistance is mainly military based mainly for the safety of the U.S. Option two is a better solution because it will reduce the involvement of the United States in the rest of the world. This option will make the U.S. have less of a role in issues in other countries. Other countries will have to solve their own problems, therefore less problems will occur in the U.S. Also, the outgoing foreign aid will be cut drastically and only some to allies and few countries will receive assistance. The foreign aid should be distributed in a more organized manner; only countries that could benefit the U.S. should receive assistance. By cutting foreign aid, the U.S. will save billions of dollars that are being distributed to around 150 countries that do not provide any assistance to the U.S. With this saved money, the United States will eventually be able to raise out of debt and create a stronger country economically. A stronger economy within the country will lead to the U.S. rising to a higher world power.

Option 2 needs a strong economic policy that will support our nation. We need an economic policy that will benefit the U.S economy and produce jobs and wealth in the United States. Monetary policy is the government's control of the money supply. The government can control how much or how little money is in circulation by the amount that they print and coin. If too much money is out there, it tends to cause inflation, or the devaluation of the dollar. Too little money causes deflation, which can lead to a recession. The powerful arm of government that controls the money supply is the Federal Reserve System, which is headed by the Federal Reserve Board. The most important way that the "Fed" controls the money supply is by adjusting interest rates — high rates discourage borrowing money, which causes less inflation. The "Fed" can lower interest rates to stimulate borrowing, which encourages consumer spending. This policy will make more jobs because the value of the money will be high enough to not cause inflation and more workers will have a job.

In our option we would continue to use our armed forces in order to protect against national security issues. We will use unmanned drones in order to avoid large military operations that could cost lives and money. We need to maintain peace with our allies but keep strong forces in troubled countries such as North Korea and Afghanistan. Keeping power close to these countries allows us to maintain peace as well as have a good view of the