Policy for Economics Class Essay

Submitted By Khadijahlynn
Words: 417
Pages: 2

New Policy

We have come up with a new policy. This new policy will incorporate some of the tools used in fiscal policy. Fiscal policy tries to decrease the government spending and decreases the taxes, which will then stimulate the economy. The economy is going to slow down and when it does we will reduce taxes and increase government spending just like demand-side economics. This new policy will captivate many people because it can cut taxes for each middle class worker which will give the person more money in their pocket and it is believed that middle class workers spend a higher percentage of their income on consumables and services which can also help the businesses provide more jobs for the unemployed. Because the middle class worker can buy some good at the grocery store and the worker can then take his profit earned and get his car fixed, and the mechanic can take his profit and go to buy his daughter some new shoes, in other words the money keeps moving around, stimulating the demand for goods and services. By lowering taxes and increasing government spending, these middle-class workers are given more capital to spend. This new policy can also give more benefits and services to the poor and the retired more welfare and medical programs. This policy is like fiscal policy and it will seek to help the economic growth, price stability and unemployment rate. Since the government couldn’t get the job done right the first time we do not want the government to…