Essay --

When should the Fed begin â€Å"its exit† from expansionary monetary policy? Or is this even the wrong question and should we instead be discussing further expansionary policy that can be conducted by the Fed? As Janet Yellen stated clearly in her recent testimony before the Senate Banking Committee, now is not the time for the Fed to begin â€Å"its exit† from expansionary monetary policy. Until inflation comes closer to the Fed target of 2 percent or the unemployment rate begins to steadily decline, the Fed should in fact be looking to further expansionary policy to give the economy all the help it can get. The current state of the U.S. economy in terms of unemployment, inflation and growth, allow this unique situation to be brought into light. The unemployment rate is in about three percentage points higher than it was seven years ago, before the start of the economic downturn. The employment-to-population ratio is about five percentage points lower, and it has not succeeded in recovering much since the trough of the recession. Furthermore, in a dataset compiled since 1948 the average unemployed person has been looking for work before the crisis was 22 weeks, in the aftermath of the recession of 1981-1982 (Mankiw). In the most recent recession, however, the average reached about 41 weeks and still stands at more than 36 weeks – an unprecedented number of long-term unemployment. The Fed, breaking from its historic emphasis on subduing inflation, has used inflation as a tool to solve the financial crisis and keep prices rising about 2 percent a year. Rising prices encourage consumption, increases profits, increases borrowing and investment spending. Yet despite this goal, inflation rose at an annual pace of 1.2 percent in August, just... ...useholds and businesses (consumption and investment) increases purchase of real estate, which increases the price of homes. Though increased housing prices and increased employment are both effects of expansionary monetary policy, higher housing prices do not necessarily benefit employment. Or in other words, higher housing prices do not directly benefit employment but are sometimes take to be a signal that employment is on the rise. On Wash’s point, he says that in some sense the Fed’s economic models have been â€Å"basically wrong for about 4 or 5 years.† By this he means that the models did not anticipate the crisis, or were imply incorrect during the past 4 or 5 years of the recession. The models do not take into account that policy response might be different, rather, they take into account a pattern of â€Å"snapping-back† to where they once were at a point in history.

Jeffersonian vs. Jacksonian Democracy

Jeffersonian vs. Jacksonian Democracy Both Jefferson and Jackson were fighting for the interests of farmers against the commercial and mercantile interests of the country. Jefferson was portrayed as a man of the people, but he remained a wealthy planter who tended to associate only with other elites. His mannerisms were much more upper-class. Jefferson talked about limited government yet his actual practices as President differed. He maintained the bank of the US, authorized the Louisiana Purchase and pushed for stronger party cohesion, all things that many Democrats opposed.Jackson was also a wealthy farmer, but he had come from a poorer region and did not have â€Å"wealthy parents. † He was much more comfortable mixing with people of lower social and economic classes. He was also much more focused on attacking the mercantile classes, particularly his refusal to renew the charter for the Bank of the US. Thomas Jefferson and Andrew Jackson were two influential political figur es in two very different eras. Each formed their own democracy that helped shape the way people think about American government.They had their differences and yet they also had their similarities. Viewpoints between the two democracies will be analyzed in political, economic, social, and religious aspects. The Jeffersonian and Jacksonian Democracies were alike and different to each other in the area of politics and economics. The conditions which a citizen was considered eligible for office holding was similar. In the Jeffersonian Democracy, an eligible citizen was one that was average rather than rich and well born.Jackson declared all ordinary and intelligent white citizens equally qualified to serve. He eventually started what is known as the â€Å"spoils system† in which long-term officeholders were removed for rotation. Then how they chose candidates to be President was done differently. In Jefferson's time the two highest voted candidates became the President and the Vi ce-President of the United States. In Jackson’s time a candidate was chosen by a nominating convention and the President and Vice-President ran for their offices separately.Both men's attitude toward the Bank of the United States was similar. Jefferson encouraged State banks and was originally opposed to the national bank. Jackson and his followers strongly opposed the Second Bank of America. He won the â€Å"Bank War† by having federal income deposited in state banks, while he continued to draw money out of the national bank. The political and economic conditions of the Jeffersonian and Jacksonian Democracies were equally related and different. However, the social and religious aspects were quite clear.Each man’s attitude toward minorities (including slaves, women, and Native Americans) were closely related. For example, Jefferson doubted that white civilization and Indian â€Å"savagery† could coexist and although he said that men were born to freedom n ot to slavery he still held many slaves. He felt strongly that women had a single purpose in life: marriage and subordination to a husband. Jefferson saw no reason to let them vote since women were never called upon to discuss politics or anything really for that matter.In the same manner, Jackson turned away from extending egalitarian policies to slaves and women received little betterment, although many reforms were taking place in the time of the Jacksonian Democracy. Jackson, who also led an expedition against in Spanish Florida in 1818, forced thousands of Native Americans to march from Georgia to Oklahoma on the infamous â€Å"Trail of Tears. † Each man viewed education in opposite opinions. One of the many bills Jefferson proposed was the Bill for General Education, which â€Å"allowed everyone, without regard to birth or wealth, to have as much free education as each person was fitted for. On the other hand, Jackson and his followers opposed programs such as educati onal reform and the establishment of public education. He believed that schools restricted individual liberty by interfering with parental responsibility and undermined freedom of religion by replacing church schools. How the separation of church and state was accomplished was different. Jefferson proposed the Statute for Religious Freedom, separating church and state and removing the private right of religious belief from control by public law.Jackson believed that a strong federal government restricted individual freedom and he was against religious reform. The social and religious viewpoints of Jefferson and Jackson had their similarities and their differences. It is clear to see how distinct the similarities and differences were between the Jeffersonian and Jacksonian Democracies. They are shown in the areas of politics, economics, social life, and religion. Their viewpoints, opinions, and or ideas all helped establish the strong democracy that America has today.

Essay about Confederation and Constitution - 1652 Words

Confederation and Constitution After the American Revolution, a new government had to be established. The Constitution that was written took power away from the people. It led to rebellions from poor people and farmers. Daniel Shays, a former Revolutionary Army captain, led a rebellion with farmers, against laws which were not fair to the poor. They protested against excessive taxes on property, polling taxes which obtained the poor from voting, unfair actions by the court of common requests, the high cost of lawsuits, and the lack of a stable currency. They wanted the government to issue paper money, since it is cheaper then gold and silver coins. Once retired George Washington heard of this, he immediately went to†¦show more content†¦Later, he said â€Å"God forbid we should ever be twenty years without such a rebellion. The people cannot be all, and always well informed.† (Jefferson is Unenthusiastic 1787) Here he is saying that America just has to have a rebellion and can’t live in peace. He is right that all the people cannot be always well informed, but attempting to keep them well informed is the key to success, which I believe the government did not, and still does not do. In a letter to James Madison, Jefferson said â€Å"†¦what I do not like. First the omission of a bill of rights providing clearly and without the aid of sophism for freedom of religion, freedom of the press, protection against standing armies, restriction against monopolies, the eternal and unremitting force of the habeas corpus laws, and trials by jury in all metters of fact triable by the laws of the land and not by the law of Nations.† (Thomas Jefferson, Letter to James Madison on the Constitution Dec. 20, 1787) â€Å"†¦greatly dislike, is the abandonment in every instance of the necessity of rotation in office and particulary in the case of the President.† Again, he is for rebellion and freedom for men. George Mason, was anShow MoreRelatedConfederation and Constitution1594 Words   |  7 PagesConfederation and Constitution United States History Professor: 9/30/12 The Articles of Confederation were a great start to shaping and unifying our country, but it was just that, a â€Å"start†. 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