The monetary and fiscal policy implemented in the United States during Essay

The monetary and fiscal policy implemented in the United States during the Great Recession and determine the short run and long - Essay Example These subjects affect all players in the economy. In addition, some concepts will be explored and discussed in relation with the depression. II. Crowding Out The concept of crowding out pertains to the increase in government borrowing leading to reduction in consumption and investments (Blanchard, 2008). When the government decides to bolster spending, the best ways to raise funds are increased taxes and borrowing. In periods when depression is imminent, raising taxes is not a practical strategy. Government will have a hard time convincing the labour force to pay more taxes when community prices continue to rise and jobs become hard to maintain. The logical approach for the government to raise funds is to borrow through treasury bills, sovereign bonds and loans. The proceeds from these activities can used to pump the economy and stabilise spending among all entities. The immediate impact of crowding out can be observed in the investments. When the government borrows, there is a possi bility that the interest rates will increase. As interest rates go up, the capacity of private investors to borrow decreases. High interest rates discourage investors to venture in activities that require massive funding. Aside from increasing the interest rate, government borrowing also create problems for companies to borrow from other channels. For instance, when a sovereign bond and a corporate bond are floated debt investors will have to decide which investment would sense (Blanchard, 2008). Governments compete with companies for funds and such hampers any expansion firms have in their pipeline. Some economists would argue that government borrowing is critical during times of depression. The inability of the private sector to sustain growth creates problems for the government (Spencer and Yohe, 1970). Long-term effects of crowding out appear to be beneficial in many ways. More funds in the public sector means spending for infrastructure and other aspects that could aid business es. Also, the government could start handing out jobs to individuals affected by companies filing for bankruptcy and downsizing firms. When used the right way, government borrowing can fuel lagging economies and facilitate the revival of private investments and consumption. III. Ricardian Equivalence Theory The main proponents of the Ricardian Equivalence theory suggest that consumer will not change even if the government decides to increase taxes. The theory also states that the method in which governments finance their spending has to impact on the overall demand in the market (Barro, 1979). In times of recession and even especially during depression, governments are pressured to spend more. Since businesses start to slow down and consumer spending could also lag, revenue from taxes is expected to be reduced. To cover for the possible budget deficit governments could resort to borrow from available channels. Even if the borrowings will continue to rise, the level of consumption an d overall demand will remain the same. According to Buchanan (1976), however, there are several aspects that were not considered when the theory was formulated. There is a difference in perspectives when dealing with borrowing and raising taxes. In addition, the promoters of the theory failed to recognise the varying opinion of the consumers when taxes are increased. Some households value their savings and considered their extra assets as insurance for their families’

TEACHING STRATEGIES TOPIC will focus on A 50 Year Old educated man Term Paper

TEACHING STRATEGIES TOPIC will focus on A 50 Year Old educated man Recently Hospitalized With Stage 2 Infected Diabetic Foo - Term Paper Example Introduction Marzano (2010) stated that during the late 1980s, various educationists across the World had created a strong campaign against the traditional teaching strategy that was seen more of exam-oriented, since it emphasized more on developing cramming skills among the students instead of critical thinking skills. This made majority of the students to lack skills in solving certain problems and even apply logical reasoning in certain instances. It is because of these reasons that various teaching strategies have been developed so far by various education stakeholders with the main aim of helping students to develop their thinking skills at levels that are higher than knowledge and comprehension. Moreover, skills on critical thinking have been greatly emphasized since even the National League for Nursing Accrediting Commission has incorporated critical thinking skills as a one of the learning outcomes in nursing programs. In actual sense, Weston (2009) described critical thinkin g as the ability to think in a rational, objective, and independent manner, in order to come up with credible and worthwhile course of actions or conclusions. Weston (2009) in his writing further added that students should follow at least six steps in order for them to become critical and logical thinkers and these steps include acquiring knowledge and perfect understanding of the topic that requires critical thinking. Secondly, the students will need to learn logic, which is the ability to construct argument and deduce meaningful conclusions. Thirdly, the students will need to learn assertiveness in order to become assertive in the criticisms that they make. The fourth step for students to become critical and logical thinkers is for them to learn comprehension, which is the ability to understand what they see/ watch and read. Fifthly, Weston (2009) stated that a critical thinker has to know about alternatives to ensure the thinking process bear valid conclusions. Lastly, Weston (20 09) stated that for students to become critical and logical thinkers they have to synthesize all separate thoughts to come up with something that is critical and logical. The frameworks of most learning theories have been aligned to ensure that learners are able to go through these steps of becoming critical and logical thinkers. Furthermore, application of the learning theories as well as the level of integration of the steps of becoming a critical and logical thinker, factor in that people have numerous forms of intelligence in different degrees. In the writings by Hunt (2011), he listed the seven forms of intelligence and they comprise of spatial, interpersonal, intrapersonal, linguistic, body-kinesthetic, musical, and logical-mathematical. The learner The casing point for this paper is a 50-year old educated man recently hospitalized with stage 2 infected diabetic foot ulcer secondary to diabetes neuropathy. According to Mathews et al (2008), the man’s condition is attrib uted to the diabetes disease that he is suffering from, which facilitated the development of the diabetic neuropathy that commonly affects the feet of a diabetic patient.