Fiscal and Monetary Comments

After sitting through hundreds of hours of television news and reading articles regarding our “faltering” economy, I continue to have strong views about opinions which oppose the standard economic business cycle and the methods by which we as Americans are looking to resolve the immediate issues facing our economy. As I have stated in the past, seasons are the natural forces of nature by which a system prunes and regenerates itself. We as Americans have grown too comfortable with our successes and have forgotten the natural processes which got us here in the first place. The decisions being made in Washington and in the offices of the Federal Reserve are decisions which will only have an immediate but not a long lasting effect. It is in some way a “band aid” being place over a massive wound.

Even though we have learned that fiscal and monetary policies are means by which government and the Federal Reserve exercise their economic strategies and control inflation and unemployment, we see that both practices have limitations. The Monetary policy exercised by the Federal Reserve puts more money in circulations through cuts in the cost of credit and/or interest. This type of policy takes time and eventually will not affect the economy immediately but long term. The Fiscal policy in the other hand, exercised by Congress and the President will circulate money only by means of tax cuts and or social funding. By providing stimulus packages (funding) doesn’t mean that citizens will spend their money rather than save it, and just merely providing social funding will not mean that organizations will disperse or even manage the money well due to lack of or immediate monetary needs.

I believe making quick decisions in a crucial time may mean complete disaster, in which we as a nation may not be able to recover from - let along our economy rebound. The realities of our economy are there, and I understand that waiting and not responding to the crisis may also have its devastating effects. But, I believe that the only way to recover from the overall economical and national crisis developed by the partisan agendas which have lead to the distrust of those in office is to regain the trust of the American people and let government work once again. Our economical crisis is just a mere image of a greater problem lingering and lurking around the door. It is an example of a broken, divided and self centered nation which needs healing and it begins with the American citizens working together with the American government. Breathing and inspiring to a new and patriotic generation!

If I had to choose the lesser of two evils, I would suggest that the latter fiscal policy (tax cuts and stimulus packages) may work better in regards to the given crisis. I believe it will speak out to Americans that the American government is interested in governing and still holds an interest in the American people and not only in the American dollar. Advocating for the fiscal policy and strong bi-partisan leadership will not only turn the economy around but the American spirit as well.