Business Finance
Grand Canyon Can Fiscal Stimulus increase Economic Recovery Discussion

Grand Canyon University

Question Description

Fiscal stimulus I believe will increase economic recovery. The programs that the government implements from fiscal year to fiscal year will stimulate the economy. Whether the programs are government bailout, money for defense spending, or through tax cut programs. I believe that programs such as the Keynesian model work. I think that most economies throughout the world that are productive and work are backed by their government. When thinking of stimulus I think of the bailouts of American car companies. “The former CEO of the super-sized used car dealership CarMax, Austin Ligon, said the president’s decisive action to restructure General Motors and Chrysler "helped prevent a domino effect that would have taken down everything in the auto industry, from the factories that manufactured auto parts to the dealers who sold the cars" (Greenberg, 2012). The government could have done nothing and the car industry could have imploded. But with a stimulus package the car industry today is doing a lot better than it was. This might also sound like a conspiracy theory but I also think that sometimes the government creates conflicts and wars to stimulate the economy. With defense spending there is a lot of money to be made through weapons programs, and just money supporting troops overseas. In addition when these service members return from duty they are spending the additional money they earned back into the economy.

Final Answer

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Economic stimulus usually involves various attempts by the government to create a financial
stability in the economy (Wood, 2012). This can be done...

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