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Micro economics is the matter of economics as it relates to companies, banks individual households and individual people. Some of the bigger aspects of microeconomics are the businesses, especially in correlation with the health care industry. The health care industry is a two fold monster that has the macroeconomic issues as well. Individual states fall into both categories as well. States by them selves with no outside funding from the federal government would maintain themselves in a micro form. Once federal government funding is allotted they then also end up in the macro spotlight.

Policy reforms are desperately needed in both sectors. The reforms need to be bold and strong and deal with a root problem more than a quick fix. Granted quick fixes can help alleviate much stress and worry and help to resolve some immediate issues. When it comes to microeconomics a discipline study should be implemented for the public sectors. Just as individuals have to deal with financial accounting in the way of budgeting and taking loans as needed, the public sector in every aspect should also be made more accountable for the frivolous spending. They also need to be made accountable for their Jones 2 monies.

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Just like the individual or business, they budget and when there budget projection falls short what options do they have? One of the biggest options is the ability to obtain loans from a lending institution. If one was to step back and reorganize the whole public policy on how monies were spent, then make a budget and stick to it chances are that progress would be seen in the light of economic growth. Many public sectors rely too heavily on federal funding and each year, if the federal funds are exhausted then they can put in for more funding and this monster just continues to grow and eventually spiral out of control.

It is my belief that they should be made to be as the rest of us and take out loans from lending institutions just as we do. They have economic advisors and with good fiscal planning they can succeed on their own much better. If federal funding were pulled or limited, regardless of the exhaustion then they would have to be more accountable for their spending. There is no reason to buy new police vehicles every other year or top name motorcycles when you can get the same, if not better at a much lower cost.

It really needs to be asked what exactly the public’s money is being spent on. Someone needs to make a complete and analytical review of the spending policies. This small reform should be implemented within the city and government levels. State level spending is another entity by itself. Each state has a Human Services department for welfare recipients and the welfare programs are generally one of the worst in economic spending. Picture it; a client applies for a cash grant, food stamps and medical and gets all three and then sent on their way. What does the state see in return?

In most cases they see this person going to classes on how to effectively build a resume and obtain job hunting skills. While for some, this actually can be a waste of time and for others, much needed Jones 3 Knowledge. I think the state welfare programs need to assess who would benefit from these classes and who has the knowledge already. Those who would benefit would be made to attend. This can help eliminate the man hours required to work with all the people who apply for services. That is just a small fraction of what the state can get back. There is a much bigger resolution.

What if those who applied for cash grants were made to pay back those grants and have it called instead, a no or low interest loan with interest being no more than 3% and not based upon criteria other than what their acceptance already is. Even if only half of the grant was all each client had to repay, at least there would be a recycling of funds back to the state for the next person. Many states have now adopted the 1 year plan where cash benefits will only last a year then the client at that time, barring special circumstances would have to work.

At this point, have an automatic deduction from their paychecks to pay back their loan. In general this may even limit the amount of people who apply for services as maybe they don’t want the burden of a loan. This in turn can also make the public more accountable to not only themselves and families but to the state as a whole. Those that fall under special circumstances such as extreme medical issues may be allowed a grant instead of a loan. This is just a small insight of reform that can take place and work on the microeconomics end of the scales and thus even creating more of the democracy that is needed within the economic status.

As for the macroeconomics of this country, many policy changes need to take place and once again these to need to be strong. The nation’s policy changes aren’t as easy to shift as the microeconomics sector and it stands to anger a lot more people in the end. A profound reform Jones 4 needs to desperately take place and the reform I have in mind affects more than our nation but we need to look out for our own country first and foremost. The bail out of the auto industry is not on the list of reforms. In other words, don’t bail out the auto industry.

We already have a surplus of vehicles, our current market is saturated enough as it is. Let the auto industry sell off its corporate jets and learn what jet pooling is. Let these automakers downsize just like everyone else has. They can cut some of the umbrella programs they have and the top CEO’s should have pay cuts. Who really needs a $5,000 vacation right now anyway? Granted downsizing will end up in the layoffs of hundreds of people in an already volatile market but there is still the unemployment compensation.

If there is to be any form of bail out again, make it in the form of additional stimulus payments for the unemployed or the healthcare industry which is in dire need. Another thing to look at for a long term change in policy is the Regan Administration’s welfare structure with respects to the food stamp program. The current policy on food stamps is hugely outdated and actually hurts the working and educational classes more than ever before. You can look at a single parent family of 2 kids or more and with the one income only from full time employment this family would still qualify for food stamps.

Now if this parent wants to enroll in higher education so as to better herself and in the long run, be able to obtain a better paying job the parent can do so. The parent also chooses to continue working at the same time without a reduction in hours…most think hey great, what a trooper but suddenly this family doesn’t agree and the fact of further education actually hurts this family more. What a sad oxymoron. The problem is that as soon as you start school you are cut off food stamps. There is Jones 5 no argument for remaining on these.

The policy is as follows; No individual who is a member of a household otherwise eligible to participate in the food stamp program under this section shall be eligible to participate in the food stamp program as a member of that or any other household if the individual is enrolled at least half-time in an institution of higher education. (FOOD STAMP ACT OF 1977). This is asinine as the parent is already working! We have reached the age of technology and it is in full force. Many Americans and even those in different countries now attend school online and not at the traditional college campus.

Why can’t we continue working, continue getting food stamps to those families in need and allow them to pursue a further education at the same time? In allowing this type of family this latitude of furthering education without penalties then of course they are doing exactly what they are told they could be doing by obtaining a better job and in many cases, in a much shorter time period. What of our trade policy and foreign aid? How many billions are spent in other countries right now when we need some of those billions back here?

I don’t care if it is 10% or 50% of our trade, it needs to stop! So much of the reason for trade is due to cheaper labor. Well add in the labor costs of this cheaper labor and the complete costs of all the transportation and wages and other monies associated with this, just to get an item to market. Now do a financial analysis on not having that trade, as much of what is traded can be accomplished in the USA; bringing that trade back to here thus actually forming more employment which should be a top priority right now and not by giving out free money to all the companies.

In the realm of war politics I understand the end result of a war and then helping to rebuild that community with the allowance that we can put a base there? Why must we do this Jones 6 with every country, every time? There are discussions about this very fact that war is only a means to an end and if that end is these bases then this harbors on the side of greed which has almost single handedly destroyed this nation anyway. Immigrants are another factor.

We have seen an influx of immigrants being allowed to stay, apply for and receive financial assistance and they can’t even speak our language. We are forced to speak a language not even native to us. This isn’t the issue. These immigrants will work for much cheaper wages and they are allowed to pull down state and federal services and how is this fair to the people of the USA? How many countries require us to know their language to a certain degree before we are allowed to work or in some cases even visit?

Those who want to immigrate to here; if they know conversationally, our language and have working skills then for all intents and purposes allow them entry and quit making the USA waste their time having to learn another countries language just to be able to work with them. Immigrate to Canada? They have an application and if you do not pass you do not get in. This is based upon employability, friends or family that reside, education levels and I believe we should adopt a similar policy. These are the policies that I would suggest a change for.

These do not directly relate to the policies in which President elect Obama is currently proposing. Obama’s plan for the various tax relief plans is focused on the middle class. While there seems to be a lot of good changes I can see where the oil companies who will be forced to give back to the people, based on a permanent tax relief may get frustrated. This relief will come in the form of a windfall to help pay rising costs of living. Additionally this relief will come from the oil companies themselves. Jones 7 (Jump start the economy. http://www. barackobama. com/issues/economy/index. php#jumpstart)

Obama’s proposed policy change on cutting taxes for upto 10 million taxpayers can be a great way for the middle class to get ahead in a financial aspect but at the same time I must wonder if this can really be afforded by the governing agency? While I agree with making this change I must wonder what the end result will be when the millions of dollars suddenly aren’t available. (Provide Middle Class Americans Tax Relief2). His policy changes on tax cuts for seniors, I totally agree with. This has been a burgeoning problem for many years making it almost impossible for many seniors to live in any form of relative comfort.

As mentioned earlier in the paper, our trade agreements need a serious overhaul in the ways of fees incurred, the not so free trade agreement and he borders in which this agreement crosses when it shouldn’t. This entire proposal by Obama can do exactly what many American’s have hoped for a long time, to bring more options for employment back to the country. No more relying on cheap labor to support individual companies. (Trade3). Investing in the forward motion of going green is a 10 fold, positive proposal. So much of our standard technology has been heading this way for years.

From creating green homes, to living green to green cars, using a natural and continually renewable source and causing less pollution to an overly polluted world, how can that make anyone disagree? That aside, the job creation and training provided for the sake of employability is a tremendous. (Invest in the Manufacturing Sector and Create 5 Million New Green Jobs4) Jones 8 A problem seen for many years is the fear of losing your job for speaking out against what Americans believe to be unfair employment policies. Those who go on strike through inherent this fear.

Even though many of these people are under contracts that are supposed to protect them, in the end, as many have experienced, they go on strike and when the strike is over, the employer finds a reason within the contract that says they were in violation thus losing their jobs. This little ceasar syndrome will disappear under the proposal of protection. Further more, the minimum wage increase to attain an actual standard of living so that us Americans can not only maintain a lifestyle but pull us up out of the poverty levels may actually decrease the benefits applied for through state programs.

(Labor5) These policy reform projects reflect only a portion of the plan Obama and Biden have set forth. If these plans are implemented and work as it is believed they will, as well as the other policies not mentioned here, it should be plain to see that our overall economic growth, sustainable living, protections against frauds and greed and loss of employments and additional training and tax cuts should make America the way America should be; A free country. Jones 9

Works Cited

FOOD STAMP ACT OF 1977. [As Amended Through P. L. 106–171, Feb. 11, 2000] http://www. vec. virginia.gov/docs/generaldocs/documents/food_stamp_act_of_1977. doc p 37 Economy. Obama for America (2008) (5 citations superscripted due to being from same source. ) http://www. barackobama.

com/issues/economy/index. php#jumpstart Butler, Stuart M. Reagan’s Bold Welfare Initiative Offers Hope for the Poor December 16, 1986 http://www. heritage. org/research/welfare/em141. cfm Murphy, Katherine. Protecting our cars may be a bad move for industry reform (June 14, 2008) http://business. theage. com. au/business/protecting-our-cars-may-be-a-bad-move-for-industry-reform-20080613-2qa0.

html? page=fullpage Quiggin,John. Economic Governance and Microeconomic Reform http://www. uq. edu. au/economics/johnquiggin/Conference/EconGovernance01. pdf Alexander, Rachael. Bailout of Financial Institutions Rewards Risky and Greedy Investments by Big Investments. (9-30-08) http://mensnewsdaily. com/2008/09/30/bailout-of-financial-institutions-rewards-risky-and-greedy-investments-by-big-business/ Hanson, Gordon. Immigration Policy (July 2004) http://irpshome. ucsd. edu/faculty/gohanson/immigration_policy. pdf

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