Its the Aggregate Demand, Stupid by Bruce Bartlett Assignment - 1

Its the Aggregate Demand, Stupid by Bruce Bartlett - Assignment Example Moreover, the author articulated that the aggregate demand is the major element with respect to the current economic condition that can create jobs and stimulate economic growth of the US. Throughout the article, Bartlett has critically explored the issue concerning the economic growth and downfall of the current labour market of the US. According to the article, it has been perceived that the lack of focus on aggregate demand along with insufficient investment and immaterialized consumption expenditure have to lead to a major downfall of the economy. The current economic policies of the nation are determined to be insufficient to address the needs of creating jobs and stimulating economic growth. However, the only effective measure to attain this goal is perceived to be related to increasing aggregate demand. According to the theoretical context, it is often attributed that the lower growth in the annual consumer spending substantially creates major vulnerabilities in the inflation rates that causes major debacles in the economic growth (Bartlett, â€Å"It’s the Aggregate Demand, Stupid†). In relation to the current policy measures of the Federal Government, the article reveals that Administration is centrally focused on maintaining average growth rather to substantially increase the level of annual consumer spending in the US. However, the mechanism is quite difficult due to the emerging level of unemployment within the states. Therefore, the existing administration is significantly inviting major risk for the nation due to its policy directed towards increasing savings while reducing the consumptions of goods and services by household, business and government. Although the policy of reducing aggregate demand promotes increasing household savings and maximizing the wealth, in long run, the process inadvertently calls for a major financial debacle in the nation.