Jesús Arturo Devesa
Economist , MBA
Impact of Fiscal deficit reduction policies over economic sectors Ideas and data for congressmen and senators: Pumping money into the financial system |Federal spending and structural problems. (03/09/11): Data from
2008, 2009 and 2010 in the U.S. and Canada; and Japan economy history
indicates that pumping money into the financial system by the government
doesn't mean economy reinvigoration. Flooding
the economy with cash can't fix structural problems. Central
banks are more a political entity than a technocratic one. Reducing
federal spending can make the economy rebound and employment drop. Based on
our GDP study from 2005 to 2010, the cost of entitlement programs- Medicare,
Medicaid and Social Security - has reduced economic output by 10% in
these five years through debt service. Fifty percent
of the economic growth in those years was originated in borrowing mainly
in consumer revolving credit.
Our ideas and studies taken from analytical data may give you instruments to implement innovative solutions. |