New US Economy Policy Message Board

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Strategies & Market Trends : New US Economy Policy

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To: Arthur Tang who wrote (261)	3/3/2001 9:00:10 AM
From: Arthur Tang	Read Replies (1) of 435

When there is trouble in the new economy; how to revisit the supply side and demand side to find the deficiency? Supply side(peace time) was done by the new deal by president FDR. The new deal requires government spending for the masses, to provide transportation, energy, clean air, waste management, water and electricity as well as telephone services. FDR also did the national parks improvement for citizen enjoyment and entertainment. Then the supply side shifted to the cold war time and military and industrial complex was pumped up for better economy. Today, the new economy is demand side economy for peace time. It is obsolescence and replacement theory plus waste recycle. It is population size and job creation. It is resource management and provision of substitutions in supply and demand. It is revolved around products and services for higher standard of living. Federal Reserve bank can not do anything except to provide the necessary monetary policy to support the size of the economy. Any restrain is un-necessary and harmful. FEDs have to be reformed.

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