Shanon Joy Cooper
Pol201: American National Government
July 2, 2012
In all aspects, the financial crisis of 2008 – 2009 has and is affecting millions of Americans. One key factor to the financial crisis in the American economy has been greed by not only the government, but businesses and individuals. Our federal government from the President, Congress, the Secretary of the Treasury, and last but not least, the Federal Reserve, has each had a contributing factor in allowing the economic crisis to happen. As the Chief Guardian of the Economy, our president has to be involved with the unemployment rate, taxes, and the prosperity of the United States as a whole. In saying this, the president has no control over the economy. His involvement as the Chief Guardian of the Economy is to oversee and help it to run smooth and efficient.
Congress has several key roles within the safety of our economy. They have the power to regulate the commerce. In doing so, they can place taxes on imported goods and they can also make trade agreements with other countries. They have control of two important factors in our economy, one being taxes and the other is government spending. Congress has the power to keep our economy safe by lowering and/or raising taxes. When our economy is in a slump, congress has the power to lower taxes. This in turn allows the people to have more money to spend. When society spends money, it in turns helps the economy. When the economy is doing too well, congress may fear inflation. If congress fears inflation, they may raise taxes. When taxes are raised, this controls spending, thus limiting the amount of cash flow that people have in their possession.
Congress can also influence the economy with government spending. They have the power to spend the government’s money. By saying this, they can increase unemployment benefits or extend the time frame for unemployment benefits. They also could allot more money to other government agencies for road work, etc. When this happens it creates jobs. When people have jobs, they tend to spend money. When people spend money, it gives the economy a boost.
Our Secretary of the Treasury has many responsibilities. They are responsible for ensuring the security and well being of the United States financial systems. They are also responsible for the promotion of economic prosperity. This department not only operates our country’s financial infrastructure but they must maintain it as well. They maintain the production of coin and currency. They disburse payments, collection of taxes, and borrowing of currency in order to run the federal government. In order to promote and encourage global economic growth, the department works with foreign governments and international financial institutions. The key job of the department is to predict and prevent the economic and financial crisis’s that may affect the United States. Another key role is enhancing security for our nation. They enhance security by improving the safeguards of our financial systems. They must implement economic sanctions against foreign threats.
Mission of the Secretary of the Treasury
Maintain a strong economy and create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively. (http://www.treasury.gov/about/role-of-treasury/Pages/default.aspx)
The Federal Reserve System of the United States is known as our “Central Bank”. Congress founded the Federal Reserve in 1913. The duty of the Federal Reserve was to implement a safe, flexible, and stable financial system for the United States. Since 1913, the roles of...