Policies Needed to Help Our Economy
...ent could encourage new technology (technology being one of the main parts of what effects GDP). Technology is fantastic, it allows for efficient production, therefore lowering production costs and prices of products, which raises the profit margin for the companies implementing the new technology, and raising GDP. But technology also takes away jobs—if production can be done by machines, we don’t need as many people to work, thus allowing organizations to lay off unneeded employees causing higher unemployment. The government could propose tariffs on imports and exports to keep our money and products in our country. But if we can purchase items for cheaper from a different country, then we will have more money to spend on other items—possibly American made items. Then, by purchasing items from other countries, those people now have money to spend on American made products. But, by applying tariffs, everyone is spending more money and the only guy making money is the one whose job it is to collect the tariffs. The government can fix prices to help the economy. But by raising the prices consumers buy less, causing the producer to lose money. By lowering the prices the producer makes less profit and eventually produces less. Minimum wage is another policy to work with. But if we raise minimum wage then the people pay more taxes. Also, if minimum wage increases, production costs increase and prices of goods increase, thus causing a vicious cycle. The government could enc...