The United Stateshas been suffering recently from recessionary pressures which have decreased economic activity in the country while increasing concern amongst the population about the lack of supportive economic policies that can support the country to survive through the recession times. In the recent months the country has seen its mortgage and housing market fail dramatically due to bad management and selling of mortgages to the subprime market.
Similarly in early 2009 the country also saw the major banks go bankrupt which sent a major blow to the capital and financial markets further weakening the economy of theUnited States. As a result the nation now required an economic policy enables an internal and external balance while providing more control on the economy.
The economy normally behaves in a cyclical fashion with booms and expansions depicted by high GDP growth, higher level of disposable incomes for the people, low levels of unemployment, low levels of poverty and increased spending by the consumer. The recessions and contractions in the economy on the other hand are characterized by the low or stunted GDP growth, low levels of disposable income for the people, high levels of unemployment, as well as decreased consumer spending which is brought on by the lower disposable incomes available to the public.