Macroeconomics Weekly Discussion, Questionnaire Example

Week 4

With the first section of the game, I was able to use “progressive indexing” to reduce benefits for future retirees as well as reduce benefits by 5%. This apparently solved 74% of the problem in terms of benefit reductions. I chose these reductions because it affects the most of the population. It would of course hit the poor pretty hard, but considering all the factors within the equation, it cannot be a win-win situation. Doing this would benefit the many, therefore reduction of benefits would create a portion of the solution and help most the people.

For revenue increases, I was able to solve the problem by 100% at the first question. In my choices, I was able to raise the payroll tax rate from 6.2% to 6.7%, both for workers and employers, as well as increase wages subject to Social Security tax. Most people would not be so pleased about a tax hike, although it does reap in its benefits. Doing this would strengthen the Social Security program, will affect the benefits mentioned above.

Week 5

Most of the money is going to Social Security and National Defense. These things probably hiked up back on 2001 when National security was being questioned. A number of things surprisingly are not being allotted a greater amount for the budget such as education and community regional development. These are things that I thought would have been higher up in the budget allotment, somewhere near the health and Medicare benefits.

Week 7

The Federal Reserve should control the nation’s money supply. In recent times of crisis, it is the Federal Reserve who has been looking into different Monetary policies to help strengthen the dollar and help stabilize the wavering economy of the United States. Just before the G-20 Summit last year, it was decided that the Federal Reserve’s balance sheet should be increased, to help the provision of credit to the economy. The policies of action being taken into the new monetary policy by the Federal Reserve are seen to promote economic recovery and to preserve price stability. These observations have two general implications for economic policy in the United States. The economy’s recovery requires the simultaneous implementation of macroeconomic policies to stimulate aggregate demand and of measures; this is believed to help repair banks’ balance sheets and encourage the provision of credit to the economy, which means that the nation does believe that the actions of the Federal Reserve can benefit the nation.

Week 8

Back when there was a crisis in the Economy around a hundred or so years ago, there was a need to jumpstart the economy and create more jobs. This lead to the boom of professionalism among young people who studied to be lawyers, doctors, etc. For the economy to stabilize again and for unemployment rates to go down, there should be a way for the economy to create small jobs while keeping the inflation rate stable. This can be done by starting small government projects that might require contract laborers.

Week 9

Yes, the government should subsidize alternative fuel options. This would allow for more growth in industries when it comes to technology. Within our fast-paced world today this is what is needed to create more jobs and step in to a better future. This would encourage materials and products that could help save money as well as the environment. Technology and industries in relation to it will mature and costs for people using this type of technology can be lowered as well. At first, it would seem like something not to bother with, but in the long run, the government, as well as the public can benefit from these incentives. After some time, firms will be able to stabilize and profits can be made. New technologies are in need of government funding and support for them to be able to convert the current energy system in to one that veers towards a cleaner type of energy source that will also help the public save some of their pocket money.

Week 10

I would focus on purchasing raw materials for a particular industry. Having this type of focus would lead me to maybe top the market and become the main supplier for whatever material it is I provide. This can be something like providing feeds for countries that thrive on agriculture. Having clients and consumers that are loyal to my product, brand and company will gain me sufficient wealth if I am able to corner that market. All I would need is an honest start and a lot of raw materials in my possession.

Week 11

The United States simply cannot just forgive the debt of developing countries. This is something meant to help the third world countries push up to a better start and improve their economy. The United States and all its people should not have to pay their debt for them. It was something done out of good graces, although it was done with the belief that it will be paid back. If the United States forgives these debts, then we would be at a loss. Economically speaking, the Unites States is not in great condition right now, and the money owed can be places in great use.