Politics
CONSCIOUSLY LIBERAL | On Fiscal Policy For the People
|
Two weeks ago I explained that the Central Bank has the ability to bypass Congressional gridlock and should conduct monetary activities that can help assuage market troubles. In this post, I will explain what Congress should do if able to act. If total spending is total income, and if a small percentage of people are getting too huge of an income that does not go to the real economy, then aggregate demand is implicated. Since both those premises are economic realities, I propose several policy recommendations for the politicians to resolve this issue. This post is divided into Revenue and Government Spending.