Congressional Progressive Caucus, 2016: How to Reduce Unemployment? Essay

Today the economy affects country budget to increase or decrease. Not only that but also it affects the consumer and their choice could change depending on their income. So the government must set up a policy to improve the economy for a better life.
The government policy they used was "raise for America". The People's Budget goal is lower unemployment rate by creating new jobs and increasing wages (Congressional Progressive Caucus, 2016). According to people's budget the unemployment rate became less than 6% but it is actually about 13% taking into account the people who are working part-time(Congressional Progressive Caucus, 2016). The objectives of this budget is to achieve full employment by setting up a numbers of policies (Congressional Progressive Caucus, 2016). First, the budget will create millions of jobs through rebuilding the infrastructure and transportation network (Congressional Progressive Caucus, 2016). Also, this policy works to encourage private funding through the creation of the infrastructure bank and that includes private and public sectors (Congressional Progressive Caucus, 2016). This will help to repair roads, water, power system and bridges. However, in order to finance these projects the budget proposes raising the gas tax considering currant the lower price of gas (Congressional Progressive Caucus, 2016). Second, the budget falls under the guaranteed investments in research and development that enhance the manufacturing sector and the use of clean energy (Congressional Progressive Caucus, 2016).
Peoples' Budget depends on the currency reform of the law of fair trade for elimination of currency manipulation (Congressional Progressive Caucus, 2016). In addition, there are direct recruitment systems in order to restore the parks and lands and strengthen early childhood development programs (Congressional Progressive Caucus, 2016). Also this budget ensures sufficient number of staff in schools and infrastructure development to enhance efficiency and flexibility (Congressional Progressive Caucus, 2016). The policy will also aid States by putting aside $95 billion that would help to hire police and firemen (Congressional Progressive Caucus, 2016). The policy aims to encourage investment by helping small businesses by providing loans to help their businesses to grow. (Congressional Progressive Caucus, 2016).)
This policy influences the economy in several ways. First, maybe the policy could not achieve full employment but it will lower the unemployment rate by providing opportunities for Americans to work and invest (Congressional Progressive Caucus, 2016). Rebuilding infrastructure and transportation impacts on the economy in the short-term (Congressional Progressive Caucus, 2016). On other hand, providing loans to start a business will affect the economy in the long-term (Congressional Progressive Caucus, 2016). If this policy is implemented, it will take care of employment needs of American people in the short and long run in order to grow the economy (Congressional Progressive Caucus, 2016).
This policy will affect the economy's aggregate demand in both the short term and long term through ensuring full employment (Evans). This policy will increase money supply in the economy that will shift aggregate demand to the right (Evans). If money supply increased the consumption levels of the consumers will increase too (Evans).