Thursday, January 24, 2008

The Economic stimulus plan

I am pleased with the announced economic stimulus plan, however my family may not directly benefit. I do agree that the most effective way to stimulate the economy is to get more cash in circulation.

I have seen statistics that say that many Americans are woefully ignorant about the economy--they say things like "why doesn't the government just print more money" and it would solve the problem. It would just cause inflation, like in Zimbabwe, where $10 million dollars will not even buy a hamburger! We should recognize that the Federal Reserve, which regulates money supply, does a good job regulating the money supply through its use of interest rates, which causes the economy to slow down or speed up, respectively.

No comments: