Andie asked in Social ScienceEconomics · 9 years ago

How have government policies affected the economy this past couple of years?

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  • 9 years ago
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    Which economy?

    In the U.S. the political deadlock has meant that very little that is needed has gotten done so the economy is still very depressed and recovering very slowly - with permanent long term damage the expected result.

    http://www.ritholtz.com/blog/2011/06/2011-private-...

    http://www.reuters.com/article/2012/05/31/usa-econ...

    http://www.guardian.co.uk/business/2012/jun/01/us-...

    And since state and local governments are laying off teachers and raising tuition in public universities, the next generation of Americans will not be anywhere near as well educated as they should be.

    http://en.wikipedia.org/wiki/Education_Index

    - another major long-term hit to the economy.

    In the Eurozone, the push has been toward austerity policies - cutting government spending - with the result that some countries are already back in recession and others will follow shortly.

    http://delong.typepad.com/sdj/2012/05/yes-european...

    http://delong.typepad.com/sdj/2012/01/the-british-...

    In China, the government has been trying to reduce inflation while keeping the growth rate high enough to avoid too many revolts. So far, it seems to hav walked the fine line successfully

    In Japan, the government policies have gone back and forth, with the result that the economy and the currency have had their ups and downs as well.

  • Anonymous
    5 years ago

    Being an older American I have seen recessions come and go. I was there under Carter. I remember gas lines. I remember mortgage rates of 19 and 20%, if you could get a mortgage at all. I remember how things were so I was not overly concerned about this recession until the democrats decided they needed to do something. When democrats do something it always involves throwing massive quantities of money at the problem. This "stimulus" bill has, at best, a 30% chance of being successful. With the amount of pork in this bill the country will be thrown into even more debt. Not by billions but by trillions of dollars. The interest alone will not be paid by us but our grandchildren and great-grandchildren. Now, now I am worried. We cannot keep propping up failing businesses. We cannot save every homeowner facing foreclosure. We cannot afford to do all the things in this package. $30 Million for a mouse in California is not stimulus it is just plain pork. $4Billion for ACORN is again just plain pork. Did these people hear their constituents or just want to pay back those who contributed to their campaigns? Last poll I saw 68% of Americans did not approve of this package. How is it that we have become a nation ruled by the minority instead of the majority?

  • Anonymous
    9 years ago

    Government affects the economy every single moment.

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