The President is considering the policies listed below to stimulate economic gro

Question

The President is considering the policies listed below to stimulate economic growth and provide a better standard of living for future residents of the United States. She wants you to rank order the policies she is considering and explain how each would (or would not) contribute to economic growth:

a. Policy to implement universal early childhood education (think prekindergarten programs) in the U.S.

b. Policy to promote the establishment of a colony on Mars.

c. Policy to encourage consumers to buy products produced in U.S.

d. Policy to provide financial literacy programs to residents of the U.S.

e. Policy to cut corporate and individual income taxes in the U.S. thereby decreasing tax revenues.

f. Policy that has the effect of decreasing affordable access to health care in the U.S.

Explanation / Answer

c. Policy to encourage consumers to buy products produced in U.S.( Since by encouraging people to buy US goods it will increase consumption which increases aggregate demand)
a. Policy to implement universal early childhood education (think prekindergarten programs) in the US.(By providing education it will increase human capital which would help for economic growth)
d. Policy to provide financial literacy programs to residents of the U.S.( With this it will help people to gain financial control which would help maintain good standard way of living)
e. Policy to cut corporate and individual income taxes in the U.S. thereby decreasing tax revenues. (With this it will increase disposable income which would increase aggregate demand)
f. Policy that has the effect of decreasing affordable access to health care in the U.S. (This would help to reduce expenses of government so that it can help people to achieve sustainability)
b. Policy to promote the establishment of a colony on Mars.( This is a long-term measure)

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