The major player in a recession or an economic collapse is the government. It can still avert an impending economic and financial disaster. If Argentina did it in 1999-2002 economic crisis, so can the American government.
Instructions
- Encourage exports. The government should focus on this business segment because it would infuse necessary foreign currencies.
- Provide Accessible Credit for Business. Business should be encouraged by the government to compensate for unemployment. More businesses mean more jobs for the people. Or, at least, source of income for the family.
- Improve Tax Collection. Taxes can finance government expenditures such as provision of credit to businesses or budgets for social welfare.
- Set Aside Large Amount Amount for Social Welfare. This will quell panic and riots and restore confidence in the people. Positive outlook will be developed in the process. This will also enable people to get back on their feet and start anew.
- Control Expenditures in Other Fields. Slash budgets on unnecessary expenditures in other areas – military, legislative, executive, other branches.
- Improve Tourism. Lure more tourists to the country. More tourists mean more money injected to the economy. Businesses will naturally sprout even small businesses in order to cater to the needs of these tourists.
- The main problem is the lack of funds as businesses closed and investors pull out their investments. The solution is to encourage the injection of money back to the country. Focus on the solution.
