Answer to Question #234956 in Economics for CCW

Question

John Stossel: Is America Number One?

Watch the video attached here in the link: https://m.youtube.com/watch?v=PZpDjxIPpFc

1. In the US, how does regulations, or freedom in economy play a role?
2. How does poverty play a role?

Answer 1

1. In the United States, the government influences economic activity through two approaches: monetary policy and fiscal policy. Through monetary policy, the government exerts its power to regulate the money supply and level of interest rates. Through fiscal policy, it uses its power to tax and to spend.

The most obvious benefit of economic freedom is that, as a system, it is the most conducive to widespread prosperity, that is, to high or rising income and consumption for the bulk of the population.

2. According to the U.S. Census Bureau's 2019 Current Population Report, 34 million Americans are considered impoverished – 10.5% of the country's population.

Poverty is linked with negative conditions such as substandard housing, homelessness, inadequate nutrition and food insecurity, inadequate child care, lack of access to health care, unsafe neighborhoods, and underresourced schools which adversely impact nation's children.