The U.S. economy has fallen into a recession essay

The U.S. economy has fallen into a recession.

The U.S. economy has fallen into a recession. It is a severe and deep recession, and one that some economic analysts say may persist for at least another year. The unemployment rate has risen to levels not seen in over 20 years. The current unemployment rate is at 8% and is expected to rise further. The inflation rate is -2.4 percent, meaning that overall, prices are falling.

Your Role

You are the new senior economic advisor to the President of the United States, and he has asked for your recommendation on how to proceed. Since you are an experienced Washington consultant, you know that you should first consult several other experts and get their advice. The following colleagues have expressed their insights and recommendations.

Key Players

Raymond Burke –Economic Consultant

Recommends the President lowers interest rates further to help businesses and consumers get back on their feet.

Kathy Lee – Former Economic Advisor to the President

Recommends the President should raise taxes and reduce government spending

Patricia Lopez – Consultant to the Federal Reserve

Recommends the Fed leave interest rates alone , but strongly sell bonds, and raise the bank reserve requirement.

Allison Tanney-  Economic Consultant

Recommends the President work with Congress to increase government spending and lower taxes. As far as monetary policy is concerned, the Federal Reserve Board needs to increase the money supply by buying bonds, raising interest rates, and if necessary, raising the reserve requirement.

Assignment

Given the scenario, your role and the information provided by the key players involved, it is time for you to make a decision.

If you are finished reviewing this scenario, close this window and return to this Week’s You Decide tab, in eCollege, to complete the activity for this scenario.

 

You can return and review this scenario again at any time.