It is believed that the economy of United States of America is the most productive. The country has enjoyed this status even though there has been a drop in the manufacturing activities and despite the fact that the country has been subject to trade deficit once in a while. In spite of a highly productive economy, the country feels the need for monetary reform in US.
The reason can be attributed to the vast difference between revenue earned and the gross domestic product or the GDP. Studies reveal that the country has a difference of approximately USD$3.77 trillion between revenues and GDP. Records state that between the period 2005 to 2006, debt of United States of America increased at a pace faster than the growth of GDP.
It was approximately five times more. Records of the Federal Reserve reports also state that currently the debt of United States of America is 460% as compared to 186% in the year 1957. In the year 2004, debt from credit cards was approximately USD$9,300 for every household.
It has been observed from time to time that monetary reform in US aimed at treating the indications. However, economic stability would have been prolonged had the government aimed at treating the causative agents instead. Another very important role, which monetary reform in US ought to play is incorporate monetary reform , bringing about a restructuring not only beneficial to the powerful but would also look into the needs of the less privileged.
For instance if interest payment to the banking institutions are decreased by means of monetary reform in US, this would decrease inflation too thereby eliminating its policy, which makes an effort to bring about stability in prices at the cost of the service class people. It has been suggested by some that the monetary policy, which the Federal Reserve has adopted known as “monetarism” or “monetary targeting”, is regarded as a “battle of the classes”. The class war benefits the rich ultimately.
There are many spheres in the economy of the United States of America, which need to be addressed and in several ways.
Monetary reform in US could make an effort to boost consistent growth in the economy, by means of inflationary bubbles. A monetary reform in US could also include the implementation of a foreign policy on the basis of monetary dominance as well as trade. There are many reformers who feel that had governments around the world utilized the various resources prevailing in their country in a more appropriate manner, things would have been different.
Any program related to monetary reform in US could attend to issues related to socio economic stability simultaneously benefiting the other sectors of economy .
Last Updated on : 26th June 2013