What policies could the US gov't adopt to end the recession?

[charrison]

how would a return to the gold standard help a recession. Even if we returned, we would have to return to a fractional gold standard.

 

[glen]

<< ...return to the gold standard. >>


Where did you study economics?

 

[b0mbrman]

If we were a country that might not exist tomorrow, then the gold standard might make sense...people trust the US will be around though 🙂

 

[Grminalac]

The easy way to infuse life into an economy is to reduce trade restrictions and allow the free market to do what it should do. One step could be lifting sanctions on Cuba.

 

[HombrePequeno]

They shouldn't adopt any more policies. The more they try to help the more harm they will probably do. Remember: The road to hell is paved with good intentions.

 

[glen]

In many countries, gold is more stable than their currency, so it is better for contracts.
In other words, why engage in a contract for payment in the future at all if the currency could be worthless in the future?
But, the US dollar is FAR more stable than gold.
It has the stability of multiple diverse products behind it, just like a stock portfolio is more stable than a single stock.
Most international contracts are written in US dollars because they are superior to gold.
It has a more stable value,
it is easily verifiable (I KNOW if I have a dollar in my hand, but if it is a lump of gold - how much does it weigh? Is it pure? etc...),
it is easily measured (the numbers are on the bills, try valuing a chunk of gold),
everyone accepts it (most places will not accept gold),
and you can wire it (try to wire a gold nugget to you account).

 

[b0mbrman]

The easy way to infuse life into an economy is to reduce trade restrictions and allow the free market to do what it should do. One step could be lifting sanctions on Cuba.

A small step...🙂

In the past you could say it's not worth the political counter-weight but no one really seems to care about communism anymore

 

[b0mbrman]

Escalate the war effort. I know this is kinda immoral and all that, but it is true. War production will boost economy in the States while more soldiers fighting mean more people getting pay. When they come back they will spend, which will boost the economy up much like Post World War II.

Not only that, winning a *big* war will bring lots of consumer confidence and it will also cause more babies to be born...

 

[Midnight Rambler]

The reality is that at this point we really don't need additional stimuli, the Fed has acted aggressively and appropriately, and there have been sufficient other economic stimuli provided by the government. Too much more stimulus and the Fed could be faced with having to raise rates in the not too distant future.

The historical fact is that the average recession has lasted 11 months, with each one being slightly shorter than the previous recession. According to the govt. dept. that keeps "official" track of such things, the current recession actually began in March of 2001. Which means we are a good 8-9 months in to this current recession, ie. the light's at the end of the tunnel, if this indeed is going to fit the model of an "average" recession, which most people think will be the case. A quick look at the stock market confirms this as the stock market is actually a leading indicator, not a trailing indicator, and is generally about 6 months ahead of the actual economic state. (Note: yes, the market has sold off the last couple days, but only because it was overbought; technically there will always be ups and downs such as this, but the trend overall is now up.

 

[b0mbrman]

Ah, so sit and wait seems to be the order of the day...