U.S. Federal Government and Economic Issues Essay

This paper relates to what I have learned in the Macroeconomics class. For this final term paper; I will write about the U.S. federal government operations and how government leaders handle macroeconomic issues in our economy. We will discuss a couple of current economic issues and what the federal government is doing to reach solutions. I will also address U.S. unemployment issues, international trade, fiscal and monetary policies, and methods of alternative energy, along with the Federal Reserve’s role to confidently curb recession and avoid inflation The U.S. federal government is actively involved in assuring national security through counterterrorism techniques. They perform strategic planning to give surety of macroeconomic financial†¦show more content†¦A current elasticity issue is the U.S. Federal Government deficit spending that incurred a large national debt in which had a negative affect on our economy. â€Å"The U.S. Federal Government has spent more mon ey than what it is bringing in for Americans. This is known as the ‘crowding-out effect’ which causes the Federal Reserve to increase unaffordable interest rates. In a recent Los Angeles Times article, 2011, Tom Petruno reports that, â€Å"as of June 18, 2011, the Federal Reserve has been trying to bail the U.S out of debt in the past year by purchasing the Treasury’s Net bond issuance and created $600 billion new paper bills for the financial system via bond purchases since November 2010.† (Petruno, 2011) On March 15, 2011, the Board of Governors of the Federal Reserve System (FBR) reported that, â€Å"the Fed Committee is promoting a stronger pace for economic recovery and have expanded its holdings on securities. They have reinvested principal payments from the security holdings and will invest an additional amount of $600 billion into long-term treasury securities by the end of the fiscal year. Feds state that household expenditures, business investme nts in equipment, and software continue to expand throughout the nation. The nonresidential structures remain weak at this time and the housing sector is still depressed. There have been some improvements in the labor market that is slowly decreasing the unemployment rate.† The Fed BoardShow MoreRelatedImmigration Reform : Illegal Immigration1697 Words   |  7 Pagesenforce federal law for identification of legal immigration into the United States. This sparked a nation wide discussion on illegal immigration and immigration reform. The problem with immigration is that the federal government has failed to control immigrants coming into the U.S. illegally. This has caused a substantial increase in illegal immigration that threatens the U.S. economy. There continues to be uncertainty on how to approach the legalized immigration into the U.S. The federal governmentRead MoreThe United States And National Government1621 Words   |  7 PagesThe United States has a federal system of government where the states and national government exercise separate powers within their own spheres of authority. 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