Economic policies

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Improving Economic Growth.

The economy is very vital when it comes to matters of the country and individual

economic gains. It determines whether the country may be rich or poor and also the living

standards of the people in a country. Therefore, any adverse changes in the economy may need to

be adjusted for the wellbeing of the citizens and the country at large. As an advisor to the

Congress, some policies may need to be enacted for every sector of the economy which will

improve the overall economic growth. These critical sectors of the economy are primary,

secondary and tertiary level sectors. They contribute to more than 80% of the total income in the

U.S and also provides the highest number of employment opportunities. The economic policies I

would propose will be focused on increasing demand and supply of goods and services in all the

commercial sectors. It is because increasing the demand for products and services will lead to

increased sales and production thus attracting more profits and revenue to the government. In

order to enable economic growth, some policies will need to be implemented.

Devaluation of currency will be one of the policies I would propose to be conducted

(Stein, Herbert 2). Though it may lead to inflation, devaluating currency will also increase the

volume exports from the U.S. The low economic growth rate may be as a result of the

manufacturing sector lacking enough market for their produced goods and services from within

the country. Exporting these goods to other countries will be their next option. Devaluation of

currency will make these exports to become cheap in other countries which will increase their

Surname 2

demand. This increase in demand will eventually lead to increased supply from these

manufacturing sectors; thus the tax collected from them will go higher. This devaluation will

also make the imports to be expensive, thus creating an advantage to the locally produced goods

which will help grow the economy even further. The other economic policy I will propose will

be the provision of tax holidays to the local manufacturing industries (Easterly, William 3).

Local industries which produce ready-made goods will need to be given like one or two years

where they will not be subjected to excise duty. It will make them input all their resources in

production to increase their profits during the tax-free period. By the time the government is

back with taxation, it will find a manufacturing industry with more profits rate, which will attract

increased revenues collected from any of these manufacturing industries.

Increasing government expenditure will be another policy that I will propose (Easterly,

William 3). The government can use its money to create a favorable working environment by

developing roads, ports, and the overall infrastructure. It will, in turn, increase the amount of

money circulating in the economy thus creating more capital to the private sectors who will then

invest it in different economic areas. Capital creation being vital far business creation will also

be my proposal. It can be done by the government through the central bank, by controlling the

interest rates charged on loans. Reducing the interest charged on loans will enable most

manufacturing sectors to borrow massive loans in order to improve the quality of their outputs.

Allocating more money to the financial government parastatals responsible for industrial

development will make them have more interest-free loans to the lender to the manufacturing

sector. It will eventually lead to more capital creation and improvements in manufacturing

sectors thus leading to economic growth.

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Surname 1 Student’s Name Professor’s Name Course Date Improving Economic Growth. The economy is very vital when it comes to matters of the country and individual economic gains. It determines whether the country may be rich or poor and also the living standards of the people in a country. Therefore, any adverse changes in the economy may need to be adjusted for the wellbeing of the citizens and the country at large. As an advisor to the Congress, some policies may need to be enacted for every sector of the economy which will improve the overall economic growth. These critical sectors of the economy are primary, secondary and tertiary level sectors. They contribute to more than 80% of the total income in the U.S and also provides the highest number of employment opportunities. The economic policies I would propose will be focused on increasing demand and supply of goods and services in all the commercial sectors. It is because increasing the demand for products and services will lead to increased sales and production thus attracting more profits and revenue to the government. In order to enable economic growth, some policies will need to be implemented. Devaluation of currency will be one of the policies I would propose to be conducted (Stein, Herbert 2). Though it may lead to inflation, devaluating currency will also increase the volume exports from the U.S. The low economic growth rate may be as a result of the manufacturing sector lacking enough market for their produce ...
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