Stop the Current Recession From Research Proposal

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By reducing taxes, the government is trying to increase the amount of disposable income in the hands of consumers. Yet, when consumers are afraid of their future employment prospects, it certainly seems plausible that they'll choose to save for future rainy days. When the government increases government spending by directly purchasing goods and services from private companies, it is trying to increase the flow of money through the economy.

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but, it takes time for this money to increase the disposable income available to consumers. This lag could be significant when private consumers are being hit so hard by declines in consumer demand. Thus, when we see the enormous dollar figures associated with stimulus package plans such as Obama's current proposal, it appears that they're trying to hit harder to make an impact......

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