The State Of The Economy Essay
President and Congress Can Stimulate the Economy
The President and Congress of the United States control the fiscal policy and have it within their power to stimulate the economy. Through legislation, the executive and legislative branch can control the fiscal policy, affecting the economy. Usually, this is intentional. However, it can be unintentional for example, by Congress deferring decisions to raise the debt limit. Congress often chooses to make fiscal policy by enacting laws that benefit the country, national GDP, economy, imports or exports, or their own personal interests. However, the President and Congress can contact the economy as well (Benjamin, 2015).
The President and Congress Can Contract the Economy
Since the President and Congress control the fiscal policy, they can enact laws that contract the economy. This can be done at the request of their constituents, to enact a tariff and change international trade relations, or to try and adjust economic indicators in the economy to avoid a downturn (Benjamin, 2015).
The Federal Reserve Can Stimulate the Economy