Monetary Capital and Its Use in Business

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Submitted By jshelly
Words 337
Pages 2
The ideal of monetary capital and its uses in business, particularly for this discussion, is not one which is new to the equation. During the great depression the United States took on a large amount of debt in order to facilitate the positive flow of money by creating jobs and projects which have allowed our country to grow at an amazing rate. In more modern times we have noticed the unintended side effects of not properly managing the national budget as our former presidents, senators and congressmen and women were able to. The stimulus’ we have been given in the past decade or two haven’t created the same stimulating effects as those of the “New Deal” under Roosevelt. From the tax stimulus given to us under president Bush to the stimulus package under president Obama billions of dollars have been “given” back to the American people, but their confidence in the government and its ability to manage debt has fallen dramatically. A certain amount of debt is good for the nation as it furthers confidence in our standing and willingness to cooperate with other nations. However, when we see a level of debt given to one specific area (i.e. the current amount of debt we owe to China) the American people tend to hold on to the funds they are given as opposed to spending them. This leaves a large portion of the funds out of circulation which is the opposite effect intended by those handing out the funds. This however is a direct effect of the lack of confidence the American people have in the government and its ability to ensure the value of the dollar.
What can the government do more effectively to ensure that consumer confidence rises as opposed to falling? Can we potentially resurrect the programs under the new deal to stimulate job growth while also rebuilding some of the aging infrastructure in this country? Is it possible to have a similar effect as the New…...

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