Anti-crisis programs and fiscal deficit in the United States

Abstract

The economic activity in the U.S. appears to be on the mend. However, the unemployment problem is still present. Despite this, Congress is discussing the possibility of cutting down public spending. It is argued that spending has gone too far y that this could cause trouble on the long term. In this paper we review this conception and question the fact that the Fed must intervene to rescue the big financial intermediaries, but that its operation is limited when it comes to fund government spending. Government spending is the most viable option that the U.S. has in order to solve its unemployment problem.