A multitude of solutions have been proposed to solve our nation's economic woes, however many have only been temporarily successful. In this post I will discuss these as well as other solutions that can potentially fix our economic situation.
The Bailouts
A bailout occurs when the government gives privately-owned banks money in order to encourage those banks to begin lending people money again. This highly controversial method proved to be of little help, as banks did not begin lending again.
Economic Stimulus
Stimulus packages, initiated by the government, are large amounts of money that are used to fund tax cuts and initiate an increase in spending - this would theoretically allow the economy to flourish once again. The stimulus package passed by the Obama administration in 2009 seems to have only been partially successful, helping some but not others.
Bring Jobs Back Home
Many U.S. companies have turned to outsourcing jobs in order to increase profits. While this helps put more money in the pockets of those companies, due to the lower salaries of workers in other countries, it has had quite a detrimental effect back home, where unemployment still plagues many. By bringing jobs back home, we can get Americans back to work while manufacturing more products in the U.S. - this would certainly have positive effects on American workers as well as the economy.
What else can the government and businesses do to solve the economic crisis?
What else can the government and businesses do to solve the economic crisis?
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Sources:
http://www.isreview.org/issues/64/feat-moseley.shtml
- Highly detailed description of causes and solutions of/to the economic crisis.
http://economyincrisis.org/solutions
- Website dedicated to information about the economic crisis.
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