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The Failed “Practical” Steps in the United States

To tackle the crisis of 2008, three rescue plans of unprecedented magnitude were launched, the first by the Bush administration, and the latter two by President Obama.

But toward the end of 2011, President Obama launched a fourth, and different, kind of plan. The American Jobs Act [22] focused on the U.S. job market by offering 450 billion dollars’ worth of tax incentives. The results of that plan remain to be seen.

Along with the government, the Federal Reserve Bank (FED) is working to support the economy. It lowered the interest rate to nearly 0%, believing (based on the traditional laws of economy) that by doing so and keeping it there long enough, the American economy would be revitalized because cheap money encourages spending and taking loans, and thus the economy would recover from the crisis. The interest rate has been near zero for almost three years now with no signs of relief from the crisis. In fact, it is only worsening. The FED proceeded to launch two giant-size incentive stimulus plans, which included buying an unprecedented 70% of American government bonds. This also failed.




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