Fiscal Policy
...nding more money for the same products. The willingness of the populace to buy, which is demand, continued to climb, creating an inflationary period. Consumers were getting the same amount of goods at a higher price than previously accustomed to. The government plan to decrease spending on the infrastructure and education while lowering taxes, helped slow down personal spending. Although there was some loss of jobs, the unemployment rate rose slightly, the economy slowed, decreasing the inflation. Demand decreased forcing suppliers to slow production and drop prices. The president and cabinet stayed popular with the decrease in taxes for the populace. The changes implemented by the fiscal policy to slow down the economy, in order to decrease inflation, have now caused a recession. Businesses are scared and reducing production because anticipation of demand for products and services in the future will be lower. To counter this, the fiscal policy was changed to increase spending on education while decreasing taxes. This created jobs in an area that was much needed. Teachers needed an incentive to go work in the remote rural areas of the country to educate the populace. At the same time, the tax rate was lowered. This kept the populace spending but also cautious of the amount of spending. There weren’t any new monies put into the infrastructure because this would not have helped with the recession. The production from business and the populace increased, which helped with the real gross domestic product of the country. GDP, inflation, recession and unemployment were four points mentioned in the reading assignments. A country’s GDP is the annual amount of all goods and services produced in that country. Inflation is a continual increase in the overall level of prices. Consumers would pay more for the same or a lesser amount of a product in previous month or year. A recession occurs when people are reducing production in anticipation of a lower demand for their products and services. Unemployment almost speaks for itself. Unemployment is a count of jobless populace who want to work, are available to work, and are actively seeking employment. Government polices affect many aspects of the telecommunication industry. As an employee of Southwestern Bell Corporation (SBC), this is seen everyday. The Federal Communications Committee (FCC) has rulings affecting the prices SBC can bill local s...