Assignment 2: Economic Advisement

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Economic Advisement Paper ECO372 Economic Advisement Paper In wake of the recent downturn of the Unites States economy many major elements in the economy have suffered. Unemployment rates are still at unsatisfactory levels, expectations remain low among consumers, and consumer income is also lower than satisfactory. Although, current interest rates remain low it is believed that more needs to be done to ensure an economic rebound remains within grasp. The following represents recommended changes needed to ensure United States Citizens do not suffer more than they already have. The economy is considered to be very unstable at the current time, and it is the duty of the United States government to do everything in their power to once again stabilize the once booming economy for the sake of the entire country and its citizens. Current Unemployment Rate Currently unemployment rates in the United Sates are a less than desirable 7.9%. Although, this number has decreased by 2.1% from its peak in recent years, it is still believed that there is a long way to go. Prior to the recession unemployment rates fluctuated between 4% and 6% (, 2012). This increase in the unemployment rate is having considerable impacts on the economy. With many U.S. citizens out of…show more content…
The Federal Reserve Bank makes recommendations to the government on the monetary policy issues. The Federal Reserve also controls the short-term interest rates along with the long-term interest rates. Currently the Prime Interest rate in the United States is at 3.25%, and it has been at that level since December 16, 2008 (Fed Prime Rate, 2012). With the prime interest rate remaining at its current level this will allow businesses and individuals to spend more money and borrow higher amounts of money and still leave them will some extra
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