Implementation of new Economic Policies of Carte Administration

By the end with the 1970s, the federal government, numerous state governments, and more than 100 major personal sector firms had adopted ZBB (Austin & Cheek, 1979). ZBB requires budgeting entities to begin over each fiscal year by justifying each product in its budget. This technique is counter to budgeting concepts that allow products to remain unchallenged in budget once inside the budget of an entity. President Carter's economic objective of this procedure to budgeting was eliminate unnecessary and wasteful spending in the federal government, reduce the federal budget deficit, and ease pressures on interest rates, capital availability, and inflation during the general economy. In the development and implementation of fiscal policy, both the President and also the Congress also can affect interest rate levels. Heavy deficit spending places pressures on the capital markets, which, in turn, often result in interest rate increases. Within the early-1970s, the Federal Reserve loosened the dollars supply, and President Nixon and also the Congress increased federal spending, in policy actions produced to stimulate a depressed economy.

The very first Arab Oil Embargo sent prices up and the economy down from the first-half in the 1970s. The Federal Reserve acted to control inflation, and those actions raised Freeman, B. M., & Mendelowitz, A. I. (1982). Process looking for a policy: The Chrysler loan guarantee. Journal of Policy Analysis and Management, 1, 443-453. President Carter's fiscal policies had been developed to stimulate economic activity, which in turn would stimulate work during the American economy. Whilst the fiscal policies in the Carter Administration have been sound, fiscal policies don't exist inside a vacuum. Other events (the Second Arab Oil Embargo, servicing the national debt, and foreign policy issues) had the effect of nullifying some of the intended outcomes.

During the Carter Administration, the efforts with the Department of Energy focused on (a) the development of option energy generation sources (solar, wind, geothermal, and so forth), (b) choice energy sources (synthetic fuels, biomass, and so forth), and (c) energy conservation. The American public during the last-half of the 1970s usually was not interested (Schweitzer, Carnes, Soderstrom, & Braid, 1983). One consequence on the disinterest then is an even worse energy case to your United States today, as well as the American public (for one of the most part) remains uninterested in conservation and choice energy sources. Council of Economic Advisers. (1991). Economic Report on the President.

Washington, D.C.: United States Government Printing Office. Austin, L. A., & Cheek, L. M. (1979). Zero-based budgeting: A choice package manual. New York: AMACOM, 1979. As it happened, the Carter Administration saved the Chrysler Company through the Chrysler Company Loan Guarantee Act of 1979, and Lee Iacocca took all the credit rating by no means acknowledging that he was just one more overpaid CEO who happened to benefit from a loan guarantee (Freeman & Mendelowitz, 1982). None from the $2.1 billion in benefits (third-party loans and wage roll-backs) towards the company would have been feasible without having the $1.5 billion in loan guarantees created possible by the Carter Administration, and, with $3.6

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