Custom Research Paper Writing
End Paper Writing Worries

Call us today to learn more:


  • 24/7 Customer Service
  • Free Plagiarism Check
  • Writing at Your Level
  • Native US Degreed Writers

Order Here

Federal Stimulus

Federal Stimulus research paper due and don’t know how to start it? How about like this?

In times of economic recession, macroeconomic theory states that stimulus is necessary to keep the economy moving forward and prevent a deflationary spiral. This can be achieved in several ways. Federal stimulus can come in the form of lowered federal interest rates, tax cuts, or direct government spending. In our recent recession we have used all three.

Lowered federal interest rates cause the money supply to increase and lower the cost of capital. This encourages borrowing and spending in order to keep the economy moving. The drawback to this method can be inflation if the interest rates are not increased once the recession is over.

Tax cuts can also stimulate the economy by putting more money in the pockets of the consumer and encouraging spending. The drawback to this method can be what Keynes called the "Paradox of Thrift". Often, tax cuts are saved and not spent. Saving and paying down debt is good for the individual, but bad for the whole. When everyone is saving, there is not enough spending to keep the economy moving. Higher income brackets tend to save more than lower brackets, as the lower brackets tend to spend a much higher percentage of their wages, especially in times of recession.

The last form of federal stimulus is direct government spending. This is beneficial in two ways. When an economy is in recession the government becomes the spender of last resort. In direct government spending, the government can spend money in infrastructure upgrades, long term projects and research and development. This achieves the result of both direct employment and leaving us with tangible assets from the spending. This can be roads, airports, rail lines or science, engineering advancements. These assets set the stage for future economic growth.

Related Research Paper Topics

State of Union - State of Union research papers discuss President Barack Obama's third state address that occurred January 26th, 2011.

Whiskey Rebellion - Whiskey Rebellion research papers discuss the tax protest that occurred in Western Pennsylvania during the administration of George Washington.

National Infrastructure - National Infrastructure Research Papers examine the Obama Administrations recent investment to assist our nation to rebuild society.

Romney's Jobs Plan - In September, 2011, Republican Mitt Romney presented a comprehensive jobs plan he believes will reinvigorate the American economy and decrease unemployment.

Collapse of the Thai Baht - Collapse of the Thai Baht provide many lessons for those interested in foreign financial matters.

Deficit Spending - Deficit Spending research papers examine the type of spending that exceeds revenue, and can refer to spending by a government, corporation, or individual.

Local Government and Finance - Local Government Research Papers discuss the management policies in local government finance.

U.S. Federal Reserve Monetary Policy - U.S. Federal Reserve Monetary Policy Research Papers examine the most recent report by congress on the overall United States economy.

Mortgage Refinancing - Mortgage Refinancing Research Papers look at an article that gives tips to a home owner on refinancing.

Microeconomic Theory - A Microeconomic Theory research paper outline provides seven points that need to be discusses in a research paper.

Keynesian Economics - Keynesian Economics research papers discusses macroeconomics theory in light of Keynes ideas.