Economic Policies of America Essay Example | Topics and Well Written Essays - 2250 words

Economic Policies of America - Essay role modelEconomic Policies of AmericaThe condition that led to capital accumulation between the years 1940 and 1970 and the development of wellbeing state in the economies that were centralized within Western Europe, United States, and Japan is known as the friendly Age. During this era, the world economy came up with conditions that ensured very high investment rates, high growth output, and downhearted inflation and ensured low unemployment (Robert, 2002). The United States Action is based on the Keynesian Revolution hypothesis.Revolutionary theory was a basic interpolate in the divided economic view to a framework that is more than unified. The main idea was that a policy should be changed in a way that it would change the unemployment level through deficit spending scenarios such as tax cuts on the industries and public works and as well changing the interest rates and the way that money was supplied. The main idea here was that the g overnment could change the level of employment among its citizens. This theory holds that employment is not a function of supply, but demand (Keynes, 2006). scorn the many things that this theory did not cover, America as the super power country decided to lessen up with policies that were to ensure that there was increased demand for their products. The United States acted among others ensured that there was a common spherical market with the aim to increase the demand for their products (Keynes, 2006). The theory was adopted by several governments, including the United States of America.