Congress sometimes demands more control of monetary policy. Is this a good idea? Why is fiscal policy, but not monetary policy, entrusted to elected politicians?
If Congress controls monetary policy that would mean that they are in control of the supply of money in private hands ultimately giving them control of the government.So no, this would not be good because this would give Control over all branches of government. Fiscal policy on the other hand is entrusted to elected politician because its the act of managing the federal budget, and giving this tasks to officials is not as dangerous of giving monetary policy because it does not give a great deal of governmental power.
Monetary policy is one of the ways that the U.S. government attempts to control the economy. This is a type of strategy used with fiscal policy. Fiscal policy is when the government adjusts its spending and tax rates to monitor and influence a nation’s economy. The difference between the two is that one wants to control, the other monitors. If Congress gains more control over the monetary policy, it will create a stronger government. According to the U.S Constitution the federal government can't have too much power over the states and the people. This is why the government was divided into three branches. The leaders of the states wanted a strong and fair national government. But they also wanted to protect individual freedoms and prevent the government from abusing its power. They believed they could do this by having three separate branches of government: the executive, the legislative and the judicial. When the three branches were created, they needed a system in order to keep their powers in check. So in order to do that checks and balances and separation of powers was created. This is a system that separates the powers of each branch of government and gives each branch the power to check the others, so that no one branch has too much power. The way monetary policy works is if the money supply grows too fast, the rate of inflation will increase. But if the growth of the money supply is slowed too much, then economic growth may also slow. Fiscal policy is entrusted to politicians because of the way the system works. By monitoring it, making suggestions, and adjusting the spending budget, this is doing the government good. No one has full control over it and they have the best interest to improve it.
Congress sometimes demands more control of monetary policy. Monetary policy is the manipulation of the supply of money in private hands by which the government can control the economy. Congress is made up of two houses. Politicians worry about money supply because it affects the rate of interest their constituents have to pay for home loans,new cars,starting up new businesses, and so on. I don't think it's a good idea. The main agency for making monetary policy is the Federal Reserve System(FED). The Fed itself purchases or sells government bonds from the bank. Fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy. Everyone likes to be in control but it wouldnt be a good idea for all branches. The federal budget entrusted to elected politicians because of the governmental power.
Monetary Policy is the best way to control the economy. This policy saves the government from spending too much or too little of money, this way everything is balanced. The U.S has set inflations, which are meant to maintain. The problem with having congress demand more control over Monetary Policy is the fear of having too much power rest on one area. Fiscal policy is when the government adjusts its spending levels and tax rates to monitor and influence a nation's economy. I believe that the politicians should only control fiscal policy, because it helps determine specific spending programs.
Monetary policy is the manipulation of the supply of money in private hands which government can control. I say yes because having to much cash or money periods can sometime cause problem, so having a certain system over it it will keep things in order accordingly. Fiscal Policy is determined by congress and the president. Politicians should have some say so, because they were elected by the people of their state to make sure that all government is being taking care of.
I believe if Congress receive more power and control that they request, the taxes will be raised and it would negatively effect the economy. If taxes rise less people will spend money because they would have less in their pockets. Monetary policy is if the money supply grows too fast, the rate of inflation will increase; if the growth of the money supply is slowed too much, then economic growth may also slow. They would have too much of an affect on the economy's rises and falls. The fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. Through fiscal policy they have limit to the control of the government expenditures and revenues. They would have control over such things such as federal grants and loans to states. Allowing the politicians control the fiscal policies, they are able to request the monetary benefits that their constituents what or need. It limits them, such as a way of checks and balances, and less control over the money in our country.
It is a bad idea to give Congress more power on top of the power they already have. Having fiscal and monetary policy controlled by different institutions is another example of "checks and balances" that are important in our political system. Monetary policy is the manipulation of the supply of money in private hands by which the government can control the economy. Fiscal policy is the policy that describes the impact of the federal budget-taxes, spending, and borrowing-on the economy. Fiscal policy is usually used to resolve major economic problems and to help resolve specific social issues.
If Congress controls monetary policy that would mean that they are in control of the supply of money in private hands ultimately giving them control of the government.So no, this would not be good because this would give Control over all branches of government.
ReplyDeleteFiscal policy on the other hand is entrusted to elected politician because its the act of managing the federal budget, and giving this tasks to officials is not as dangerous of giving monetary policy because it does not give a great deal of governmental power.
Monetary policy is one of the ways that the U.S. government attempts to control the economy. This is a type of strategy used with fiscal policy. Fiscal policy is when the government adjusts its spending and tax rates to monitor and influence a nation’s economy. The difference between the two is that one wants to control, the other monitors. If Congress gains more control over the monetary policy, it will create a stronger government.
ReplyDeleteAccording to the U.S Constitution the federal government can't have too much power over the states and the people. This is why the government was divided into three branches. The leaders of the states wanted a strong and fair national government. But they also wanted to protect individual freedoms and prevent the government from abusing its power. They believed they could do this by having three separate branches of government: the executive, the legislative and the judicial. When the three branches were created, they needed a system in order to keep their powers in check. So in order to do that checks and balances and separation of powers was created. This is a system that separates the powers of each branch of government and gives each branch the power to check the others, so that no one branch has too much power.
The way monetary policy works is if the money supply grows too fast, the rate of inflation will increase. But if the growth of the money supply is slowed too much, then economic growth may also slow. Fiscal policy is entrusted to politicians because of the way the system works. By monitoring it, making suggestions, and adjusting the spending budget, this is doing the government good. No one has full control over it and they have the best interest to improve it.
Congress sometimes demands more control of monetary policy. Monetary policy is the manipulation of the supply of money in private hands by which the government can control the economy. Congress is made up of two houses. Politicians worry about money supply because it affects the rate of interest their constituents have to pay for home loans,new cars,starting up new businesses, and so on. I don't think it's a good idea. The main agency for making monetary policy is the Federal Reserve System(FED). The Fed itself purchases or sells government bonds from the bank. Fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy. Everyone likes to be in control but it wouldnt be a good idea for all branches. The federal budget entrusted to elected politicians because of the governmental power.
ReplyDeleteMonetary Policy is the best way to control the economy. This policy saves the government from spending too much or too little of money, this way everything is balanced. The U.S has set inflations, which are meant to maintain. The problem with having congress demand more control over Monetary Policy is the fear of having too much power rest on one area. Fiscal policy is when the government adjusts its spending levels and tax rates to monitor and influence a nation's economy. I believe that the politicians should only control fiscal policy, because it helps determine specific spending programs.
ReplyDeleteMonetary policy is the manipulation of the supply of money in private hands which government can control. I say yes because having to much cash or money periods can sometime cause problem, so having a certain system over it it will keep things in order accordingly. Fiscal Policy is determined by congress and the president. Politicians should have some say so, because they were elected by the people of their state to make sure that all government is being taking care of.
ReplyDeleteI believe if Congress receive more power and control that they request, the taxes will be raised and it would negatively effect the economy. If taxes rise less people will spend money because they would have less in their pockets. Monetary policy is if the money supply grows too fast, the rate of inflation will increase; if the growth of the money supply is slowed too much, then economic growth may also slow. They would have too much of an affect on the economy's rises and falls. The fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. Through fiscal policy they have limit to the control of the government expenditures and revenues. They would have control over such things such as federal grants and loans to states. Allowing the politicians control the fiscal policies, they are able to request the monetary benefits that their constituents what or need. It limits them, such as a way of checks and balances, and less control over the money in our country.
ReplyDeleteIt is a bad idea to give Congress more power on top of the power they already have. Having fiscal and monetary policy controlled by different institutions is another example of "checks and balances" that are important in our political system. Monetary policy is the manipulation of the supply of money in private hands by which the government can control the economy. Fiscal policy is the policy that describes the impact of the federal budget-taxes, spending, and borrowing-on the economy. Fiscal policy is usually used to resolve major economic problems and to help resolve specific social issues.
ReplyDelete