28 January 2008

The Federal Reserve and Government on Money

The Federal Reserve acts to cushion the business cycle by reigning in economic activity in times of boom through contractionary monetary policy and to boost it in times of downturn through expansionary monetary policy.

Furthermore, the government is currently planning a transfer of funds back to the American people. Taking a look at the money flow, most taxes are payed by the wealthiest Americans, (from the highest tax payers) whereas the "tax rebate" is being given exclusively to taxpayers making under $75,000/yr to act as a stimulus to the economy.