AN ECONOMIC FORECAST AND POLICY PROSPECTS

The economy is stagnating today because everyone is waiting for someone else to restart the recovery. Consumers are deferring major purchases until job prospects are rosier. Businesses are pushing down their inventories and payrolls until their order books surge. In essence the economic fundamentals are sound, but at this point, we need a new catalyst for recovery. It is time to implement policies that directly stimulate investment including a self-financing equipment tax credit for productive equipment purchases, adjustment of Federal Reserve and Treasury market activities in order to lower bond rates, initiation of a bounty for scrapping old cars, and the channeling of a higher proportion of public funds to public investment in health, education, sCience, and advanced infrastructures.


Issue Date:
1992
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/131439
Published in:
Choices, Volume 07, Issue 1
Total Pages:
4




 Record created 2017-04-01, last modified 2017-08-26

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