POLICY CREATION AND IMPLEMENTATION

Policy Creation And Implementation

Policy Creation And Implementation

Massive downturn to U.S. economy

The current economic downturn is different from others in the past. That difference is based on the civilian employment base increasing by 9% during the past eight years, while the national debt increased 89% during the same period. Consequently, fixing this economy means not only making credit available and reconciling the toxic loans, it means increasing the employment base by a least 7.5 million persons. That type of increase only happens through a socioeconomic change, and that has happened only four times since 1776. NetGain has continually analyzed, stated and cautioned that ours is a cyclical economy, and that recessions are a fact of life, and should be a part of every income property investor's strategy. Given the current economy and the media's propensity to focus on the negative, one could get the feeling we're heading toward a precipice and about to fall off. Many industries and companies have come to a precipice and fallen off. Our economy hasn't. It has maintained a 1000 batting average for recovery, and there's no indication that it is about to change.

Though the subprime lending crisis is the latest economic factor affecting a large number of Americans, other factors such as the rising price of oil, government budgets strained by costs of natural disasters and the increasing debt caused by the mounting cost of the Iraq War are wreaking havoc on America's economy. Economic confidence is low and significant numbers of American tax payers are feeling pinched even if they are unable to explain it.

The recent financial troubles of Bear Stearns prompted an emergency bail out by the Federal Reserve and JP Morgan Chase & Co. to avoid what many financial analysts predicted could have been a total economic collapse of financial markets. Another troubled lender, Countrywide Financial Corporation was rocked by allegations of financial irresponsibility and possible impropriety leading to a downward spiral in stock prices. Well known companies such as Morgan Stanley, Lehman Brothers, Merrill Lynch, Citigroup, UBS and Goldman Sachs are taking another look at their risky loan processes, analyzing industry trends, and closely monitoring their stock prices.

Responsibility, Constitutional Authority, And The Policy Opinion

(1)President

A president's legal activity immensely but indirectly affects the economy. Presidential responsibilities, such as creating the national budget, proposing legislation that increases or cuts taxes and levying tariffs on imports and exports much more directly, impact the economy and the lives of all Americans.

Creating a national budget is a huge undertaking, which requires a huge staff (more on that later). Within the budget, the funding for all programs, services, military activities and recent legislation is spelled out in detail. The choices made for funding of programs affects enormous sections of Americans; for example, an increase of defense spending may lead to a decrease in welfare programs. The president's decision on spending also can lead to an increase in taxes.

(2)Congress

Congress gave the authority to determine the nation's money supply ...