Custom «Fiscal Policy» Essay Paper Sample

Fiscal Policy

Fiscal policy is a monetary term which refers to the use of government's revenue and expenditure in order to influence the economic trend in a country. Fiscal policies can either have a positive or a negative impact to the economy. In the politics of United States, fiscal policy is seen to have been used as the main tool for earning public votes by individual's running for presidential seats in the country over the previous years.

However, the theory of business cycle states that the economic periods of recession and economic growth as efficient responses to changes in the economic environment. With accordance to this theory, political environment in the United States is said to be the major contributor to the economic responses. Many political aspirants in the country time the economic downturn to influence public into voting them by promising creation of good economic environment when they succeed.

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However, the political method of timing negative business cycle has contributed to slow economic growth and stress in the countries administration. Therefore, as a result fiscal policies end up being abused by the politicians since they apply the policy by electoral considerations rather not by ideologies. In addition, in every time fiscal policy is applied for electoral motives by the politicians, the citizens of the United States end up suffering the long-term negative effects that comes along later in the administration of such politicians.

Moreover, the timing of economic downturn for personal gain by political aspirants always has a negative impact to the economy. This is because the fiscal policy can only be implemented in either the containment of inflation or to fight unemployment in the country. However, application of either has a negative impact because proper professions who advise on such measures are not made use of rather political ambitions (Fair, 2002).

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In previous after election periods in the United States, citizens suffer from either rise in the prices of commodities or unemployment. For instance, democrat aspirants promise the public on the containment of economic recession and unemployment once they are voted in the highest office of the land. When they get into the power, they fight against unemployment by employing large number of people who are paid the normal salaries. This implies that democrats do not put into considerations the effects of inflation on the economy because surplus employment causes inflation and rise in the prices of basic commodities in the market which is a negative impact to the economic growth and development.

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In contrast, republican aspirants view this situation as the tool to drive them into high positions of governance in the country. However, they campaign against high prices of basic commodities and promise the public that they will lower down the prices of these commodities once they are voted for. Once they get into power, they reduce the number of employees so as to control inflation which results to huge unemployment and unstable economic growth in the country. Furthermore, republicans are believed to apply worse fiscal policies than their political counterparts because loss of jobs leads to poverty and insecurity in the United States and loss of product markets which render to some producers shutting down. Therefore, either member of the two parties uses fiscal timing to their advantage which they end up abusing and causing more harm to the economy.

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In conclusion, the fiscal policy is not a political tool rather it is a monetary tool which should only be used by economists. Therefore, it plays invalid role which causes harm to the countries economy when it is used by politicians for their own good. Therefore the citizens of the United States need to learn from the past experiences and prohibit political aspirants from interfering with the affairs of fiscal policy.

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