Fiscal Policy vs. Monetary Policy
With America in recovery from the attacks on our freedom and our economy, many wonder if we will return to phase one (expansion) and how long it will take to reach phase two (recession) again. The Keynesian Theorists of America believe that the government should actively pursue Monetary policies (enacted by the Federal Reserve Bank) and Fiscal policies (enacted by Congress) to reach adjustments to price, employment, and growth levels. In our full market economy, we must use these economic policies to control aggregate demand. When these policies are used to stimulate the economy during a recession, it is said that the government is pursuing expansionary economic policies.
Fiscal Policy is described as changing the taxing and spending of the federal government for purposes of expanding or contracting the level of aggregate demand; these are designed to increase short-run economic growth. In a recession, an expansionary fiscal policy involves lowering taxes and increasing government spending. By cutting taxes, increasing government spending programs, and increasing transfer payments, more money is in the economy, more income, and more spending. This can be done through the federal budget process; however, the problem with fiscal policy is lag time. This process can take so long (as long as a year or more) that Discretionary Fiscal Policy is very rarely used in the federal governmen...
In Keynesianism, government uses fiscal policy, which is a list of policies that government spending and taxing can be used to improve the performance of an economy. The government produces stabilization by taxing and spending yearly plans. Taxing can occur when inflation is high, and lowering taxes tends to occur during a high percentage of unemployment. By lowering taxes, it increases disposable income or the amount of income that goes to financial responsibilities. When people have more money, they are able to spend more, which in return goes into jump starting the economy.
Every few years, countries experience an economic decline which is commonly referred to as a recession. In recent years the U.S. has been faced with overcoming the most devastating global economic hardships since the Great Depression. This period “a period of declining GDP, accompanied by lower real income and higher unemployment” has been referred to as the Great Recession (McConnell, 2012 p.G-30). This paper will cover the issues which led to the recession, discuss the strategies taken by the Government and Federal Reserve to alleviate the crisis, and look at the future outlook of the U.S. economy. By examining the nation’s economic struggles during this time period (2007-2009), it will conclude that the current macroeconomic situation deals with unemployment, which is a direct result of the recession.
Car and Driver Magazine did a study on how long it takes to react and stop a car unimpaired, legally drunk, and responding to a text message. The study shows that the reaction times are increased while legally drunk, with a blood alcohol level of .08, and rises even further with texting. The article explains that text messaging is more dangerous than drunk driving because you are distracted in three ways instead of only two ways when under the influence of alcohol. While distracted by texting, you are distracted cognitively, unable to focus on your driving skills. You are also distracted visually by taking your eyes off of the road. Last but not least, you are distracted manually by taking your hands off of the wheel to send a text message. Manual distraction usually does not take place while driving under the influence. Teenagers are the highest population that texts while driving and eleven teens are killed each day. (Samakow)
Texting and driving is a deadly issue in today 's generation. Using our cellphones while driving is a damaging habit among teens and adults. This habit caused many catastrophic accidents and deaths. Texting while driving has made the roads unsafe for other drivers. Many states recognize the immense threat resulting from texting and driving and have placed a ban on this epidemic. While many people realize texting and driving is hazardous others believe that the ban is useless and not strong enough of a solution.
Due to domestic violence’s widespread effects, most individuals either retain, or know an individual who retains, personal experience with domestic violence. In both my personal experience and my mother’s, I preserve three distinct experiences of domestic violence. My first exposure to domestic violence occurred when I was four years old, as my parents reached the breaking point in their marriage. I witnessed physical and emotional abuse in my parent’s marriage as they fought over their three children and their marriage. The physical abuse represents the first, and only, memory I retain of my parents being married. Because I never witnessed my parent’s happily married, it affected my childhood through making me feel as if I must pick a side. I felt that my childhood did not represent a family, but rather a continuous battle over who retained more power over us children and the resources. I deemed relationships as degrading and selfish due to the
There are some startling statistics about texting and driving. The NHTSA (National Highway Traffic Safety Administration) stated that in 2008, 16% of all fatal crashes and 21% of all crashes were caused by texting and driving (Chordas; Hartwell). Over 50% of teens admit to using cell phones while driving (Hart; Paterson). That was over five years ago and even more people are texting and driving today. This shows that this problem is not going to go away.
When people hear their phone ding, they immediately have the urge to see what is going on. “Seventy-seven percent of teens say they are more than confident”, and they think they are able to safely text while driving. “Fifty-five percent of young adult drivers say it is really easy to text and drive”(stoptextsstopwrecks.org), and they do not understand why it is such a big problem to do so. Teenagers are not the only ones who take part in the act of texting and driving, many teens have said they see their parents do it. Studies show that “5 seconds is the minimal amount of time your attention is taken away from the road when you 're texting and driving”(DWI:Driving While Intexticated). Say a person is traveling at fifty-five miles per hour, the five seconds they take to look at their phone is equal to driving the length of a football field without looking at the road. If the driver in front of the texter comes to an emergency stop, and they are not paying attention, he or she will have caused an accident because they were paying attention to a phone. Texting while driving causes about 1,600,000 accidents and 330,000 injuries per year. The accidents, injuries, and deaths are all a result of someone feeling the need to take their focus off the road, and place it on seeing what their friend texted
That is equivalent to downing four beers and then getting behind the wheel.”. Texting while driving is considered to be the highest form of distracted driving. In 2002 2,600 people died from distracted drivers and in 2011 3,331 this number has gone up by 22% in the last 9 years. In 2002 drunk driving accidents have killed 12,405 people but by 2011 that number has decreased by 25% to 9,296. This shows that texting while driving is on its way up and may continue to get worse. The National Highway & Transportation Administration (NHTSA) declares that 1.6 millions accents are caused by texting and driving every year, thats almost 25% of all automobile accidents (Masters).We already know that texting increases chance in an accident, well so does dialing by 2.8%. Also so does talking and listening at 1.3% and reaching for your cell phone at 1.4% (Texting). On November 28, 2010 Nina Todd was leaving her mother house with her two sons, when Karli Brown struck her car head on. In result of the accident Nina’s
Teens should be the last group of people to break this law. “Texting while driving makes crashes 23 times more likely”. As drivers become more experienced and older texting while driving increases. For example, “24 percent of 16 year olds said they text and drive, as opposed to the 58 percent of 18 year olds that don’t”. In general teens text much more than adults while driving. As a matter of fact, “82 percent of drivers between the ages of 16 to 24 have admitted to reading a text message while driving”. Not only are teens unexperienced but are trying to pull off the nearly impossible task while driving. Texting while driving is leading cause of death among teenagers passing the death rate of drinking and driving. Studies show that if this trend continues, more than 3,000 teenagers will die next year. For example if a driver sends a 5 second text message while moving 55 mph it is equal to driving a whole football field lengt...
Texting while driving is a terrible idea because it puts people in danger, it can cause endless expenses and it causes trouble, obstacles, and heartache for the affected families. There is potential property and vehicle damage that could be a consequence to texting while driving. This act can injure and kill the offender and others. Many victims and their families can suffer emotional effects from crashes. There are many processes to help end this horrific behavior. Stop texting and driving and spread the facts.
Teenagers don’t want to be inconvenient with having to wait to respond to their friends about the latest party or school event that’s coming up. Driving is just as good of time as any to text their best friends about the upcoming weekend or update their Facebook status in the mind of a young adult. Even though most teens know they shouldn’t text and drive many are guilty of doing it several times a day. An overwhelming 75% of teens even admit to text messaging while driving (“Distracted Driving,” 2016). Young drivers are more likely to get into an accident due to lack of experience than that of any other driver on the road. Add in texting to the mix it is a recipe for disaster. About 54% of teenage motor vehicle crash deaths occur on Friday, Saturday or Sunday – with Saturday being the deadliest day of the week for teens (Hosansky, 2012). Teenage motor vehicle fatalities are at the highest in the summer months.
Texting while driving is a widespread epidemic in the United States that has unfavorable effects on our society.“Driving while texting is the standard wording used for traffic violations” (Bernstein). It causes many people to be distracted which can lead to accidents. “Eighty-nine percent of people own a cell phone” (Gardner). That is a plethora of people that are at risk of texting while driving. Also, texting has increased by ten times in three years(Bernstein). “The risk of a crash for those who are texting is twenty-three point two times greater than those who are not” (Gardner).Driving drunk only makes a person seven times more likely to be in a crash (Bernstein). This means texting while driving is three times more dangerous than driving intoxicated. One in five drivers admits to texting while driving(Gardner). This shows that that texting while driving is a widespread epidemic. When a survey asked teenagers whether they text and drive,“seventy five percent of teens admitted to texting while driving” (7).Distracted driving causes seventy-eight percent of car crashes(Bernstein). “No distraction causes as high of a risk of an accident as texting while driving” (Gardner). Also with these statistics, it is not hard to understand why accidents in teenagers that are driving have risen. The Bluetooth capability in cars gives a driver a hands-free way to talk on the phone, but is still not completely safe (8). Also, only 1 out of 3 US cars sold in 2009 had this feature. New systems are being developed that will use Bluetooth as well a global positioning technology to allow parents to monitor cell phone use and texting while driving (10).
For example, items on the road, stalled vehicles and unexpected traffic. By not giving driving the full attention that it requires, people often get in accidents or end up dying. Overall, texting and driving should stop.
Fifty percent of teen drivers have admitted to frequently using their phones while driving; twenty percent of people have said they browse the web while driving, causing eighteen percent of these accidents to result in fatal injuries. In 2013 alone 424,000 people were injured in a driving accident where the driver was texting and not paying attention to their surroundings. People are constantly on their phones, never being able to put them away which leads them to text and drive, therefore making the roads unsafe and putting everybody else on the road safety in jeopardy.
These two policies use to try to shorten recessions. Fiscal policy has its initial impact in the goods markets, then monetary policy has its initial impact mainly in the assets markets, which both effect on both level of output and interest rates. (R. Dornbusch et al., 2008)