| Problem | Components |
|---|---|
| Policy issue area: | Economics |
| Policy issue: | Monetary system |
| Description: | Stimulative budgetary and fiscal policies promoted a huge expansion of domestic spending. |
| Symptoms: | Domestic spending expanded 60% over other industrial nations' spending the last six years; total non-Federal debt is now over $6 trillion; personal savings rates are the lowest since the Depression of 1929; United States became the world's largest debtor nation. |
| Causes: | Reckless consumer and corporate spending, unwarranted by economic realities and borrowing against the future. |
| Cost of problem: | - |
| Solution | Components |
| Resources: | Business and industry; Federal government (Congress and executive branch agencies). |
| Goal: | 1. Gradually reduce consumption and speculative business borrowing 2. Bring ratio of total debt and gross national product (GNP) down to a sound level. |
| Program area: | Financial resources development |
| Program-remedy: | 1. Implement policies that will cause a reduction in consumer spending, and stimulate
exports and personal savings 2. Expanding and vibrant economy to keep debts as a reasonable ratio of GNP. |
| Program-prevent: | Better management of the economy and fiscal/monetary policies. |
| Cost of program: | - |
| Beneficiaries: | All who need to borrow money. |