Federal Budget: Deficit or Balance?
The government should have a balanced budget to protect future generations. A balanced budget helps the economy grow, as spending equals revenue. It means the government will be able to pay off all the national debt and create an environment in which Americans are unburdened by it, thereby guaranteeing high productivity and profitability for the country (Laudon and Traver 76). Although it is challenging to implement, the requirement guarantees social programs, such as Social Security, for people who cease active daily work.
Trade Policy: Free Trade or Protectionism?
Free trade is essential because it increases the country’s efficiency. The reason is that free trade is competitive, meaning a country can excel depending on the resources it trades. Free trade leads to better product quality, which in turn lowers the cost of producing basic commodities, making them more affordable for Americans (Laudon and Traver 61). Through free trade, tariffs are eliminated, thereby addressing behind-the-border constraints that affect the flow of goods. Thus, the citizens’ quality of life is enhanced, thereby improving society’s overall well-being.
Federal Income Taxes: Increase or Decrease?
The federal income tax should be decreased to liberate the US economy. The reason is that it will lead to increased demand in the short term, and the effects on supply and productivity will persist for a long time (Boustani 52). As a result, economic growth will occur due to increased demand as consumers have higher spending power. In terms of supply, cutting federal income taxes increased the incentives to work, which, in turn, led to increased productivity.
Supporting Entrepreneurs and Job Creation
Entrepreneurs will be given broad space to open new businesses, helping to create new jobs and drive innovation in the US. This will be enabled by easing foreign direct investment (FDI) requirements, allowing many foreign investors to expand their businesses (Boustani 34). Innovation can be boosted by adopting a microservices architecture within a business, enabling operations across ventures to be greener and counter potential constraints. That means the economy will remain strong due to increased opportunities and innovation in the country.
Works Cited
Boustani, Ghalia. Ephemeral Retailing: Pop-up Stores in a Postmodern Consumption Era. Routledge, 2020.
Laudon, Kenneth C., and Carol Guercio Traver. E-Commerce 2020-2021: Business, Technology, Society. Pearson Education Limited, 2021.