What is the process to develop an economic policy that provides services and sustainability?

 I think that the process of developing an economic policy that provides services and sustainability is a very complicated and intricate process. I think that it is accomplished here in the United States through many different programs and policies. As an aside, I believe that having a reliable and sustainable economic policy is important because "when policies that influence the production and allocation of goods and services work well, families have income to pay for food, housing, health care, and some amenities" (Draper 316)

The programs and policies that the government sponsors that aide in the process of developing an economic policy that provides services and sustainability are: monetary policy, regulation, taxes, fiscal policy, spending as well as supporting the gentle relationship between the government and the economy. I believe that it is the influence and operations of all of these programs and policies in congruence that has created, or attempted to create, an economic policy that provides services and sustainability.

I also think that it is worth noting that our government’s role in our economy is relatively small. In fact, "government is necessary to create a common currency that facilitates trade and exchange, to enforce contracts that promote security and predictability, and to supply public goods, such as police protection and highways, that society needs but the market will not provide because it is unprofitable to do so." (Draper 314) While the government provides these resources they also try to "manage the economy through monetary policy. Monetary policy attempts to fine-tune the economy by manipulating interest rates, the cost of money." (Draper 303) managed by the fed

I believe that the government’s small role in the economy through monetary policy is why the Fed is so important and influential in our economic policy. (The Fed manages our countries monetary policy.) It is for these reasons that I believe that while, all of these programs and policies are important but I think that the most important facet within all of these programs and policies is the Fed. However, it may also be telling that "of all the government agencies, the Fed enjoys the most political independence from both Congress and the president." (Draper 305) When the most influential economic government agency is in turn highly independent from political influence I think that this can only be a good thing for our economy.

However, not everyone agrees with the way our economic policy is currently running. (I know I don't all of the time.) During a recent Bush Institute conference to promote economic growth some people, including former president Bush voiced their dislike of the current state of our economic policy. On such person is Meg Whitman (former CEO of EBay) who at this same conference said, “the economic model we’re relying on in the U.S. isn’t working.” (Stahl) Ms. Whitman furthered her comments by also alleging that “most Western European nations have a lower corporate tax rate than the U.S. and that other countries’ success in attracting manufacturing jobs means the nation is being “out-competed.”” (Stahl)

I found this video from CNN that shows an interview with Reagan's budget director and his take on the state of the U.S. economy compelling. 

Critical Question:  All of this makes me wonder, do you think that the U.S. has a good economic policy? How do you think that we can prevent being “out-competed” by other countries who may have lower corporate tax rates or cheaper manufacturing than we do? 

Draper, Alan. The Politics of Power a Critical Introduction to American Government. 

New York: W.W. Norton & Company, Inc., 2011.

Stahl, Lori. "Bush Calls for Backing Off Government Involvement in Padding Economy." 
dallasnews.com. 12 April. 2011.

http://www.dallasnews.com/news/politics/headlines/20110412-bush-calls-for-backing-off-government-involvement-in-padding-economy.ece.