Your team of fiscal policy experts has been given the task of creating an economic plan to deal with the current economic situation. You must make 5 specific proposals that you believe will help the economy. Please explain what you believe the problem is, make specific changes to taxes or spending items, and explain why you made you made the changes you did.

Purpose: Analyze the economic data provided for your squad and offer 3 policy changes that you believe will help our nation deal with the current economic troubles.

A / Last year: Unemployment was at 7.5%, GDP was down 1%, Inflation was steady at 2%.
This year: Unemployment is at 9%, GDP has continued to decline by about 2%. Inflation is low
Expectations about future: Businesses continue to lay off workers and unemployment claims continue to rise. There is little hope that things are going to turn around soon, as the stock market is still declining.
B / Last year: Unemployment was at 5.5%, GDP was up 5%, Inflation was a bit high at 7%.
This year: Unemployment is at 4.3%, GDP has continued to increase steadily. Inflation is now up to about 10%
Expectations about future: Businesses is booming. New businesses are popping up all over the play There is a lot of fear that inflation will hurt us in the long run, as the stock market is soaring at record levels.
C / Last year: Unemployment was at 10.5%, GDP was down 5%, Inflation was steady at 1%.
This year: Unemployment is at 14%, GDP has continued to decline by about 8%. Inflation is low
Expectations about future: Businesses are failing almost every day. There is general fear that we might be heading for the 2nd great depression. People are getting desperate out there and they are losing faith in the governments ability to help. Oh and you do not want to know how the stock market is doing. (It is not good)
D / Last year: Unemployment was at 4.5%, GDP was up 10%, Inflation was at 8%.
This year: Unemployment is at 3.8%, GDP has continued to rise by over 10%. Inflation is at 15%.
Expectations about future: There is general panic about the inflation rate. Retirees are angry as their retirement savings are losing value every day. Something needs to be done and done quickly.
E / Last year: Unemployment was at 5.5%, GDP was steady at 3% growth, and inflation was at 1.8%
This year: Unemployment is at 6%, GDP has continued to grow by about 1%. Inflation is low
Expectations about future: Things seem to be OK at the moment, but the stock market has had a few rough days. Unemployment keeps creeping upward. GDP growth seems sluggish and most experts think a recession is imminent. The President wants to get out in front of this and expects you to come up with a glorious plan.

Things you could change:

Taxes:

Average lower class income tax rate of 5%

Average middle class income tax rate of 15% of income

Average wealthy income tax rate of 28% of income

Social Security tax rate of 6.2% of all income (for most Americans)

Capital Gains tax rate of 14% (on all profits made from stocks, investments)

Spending:

Federal Bureau of Prisons: $7,200,000,000 (7.2 Billion)

National Endowment for the Humanities: $155,000,000 (155 million)

National Endowment for the Arts: $146,000,000 (146 million)

Farm subsidies: $20,500,000,000 (20.5 Billion)

Department of Education: $68,000,000,000 (68 Billion)

Environmental Protection Agency: $8,200,000,000 (8.2 Billion)

***NOTE: If you want to look up a budget for any FEDERAL budget item and change it you can. Try to keep it accurate.