President's Dilemma Economics Project, Did I Receive a Fair Grade?

Hello members of the community. I presented a speech today in my Economics class and I believe I was graded subjectively and unfairly due to the fact that my political views are different than my instructor's. Below is a transcript of the speech I presented. The assignment was to brief the President of the United States on what we should do to combat inflation, unemployment and oil prices. We had to take into account a special interest group (Studebaker corporation) which produces automobiles. Below you will find all relevant information presented during my speech.

Speech:

"Good morning Madame President [censored last name] & fellow interest groups. Today, we present to you our economic policy to combat the unsustainable rise in inflation, unemployment and oil prices. We concluded that the root causes of the issues are: unemployment is due to a lack of job creation, rising oil prices are a direct result of dependence on foreign oil, and high inflation rates are due to stagnant wages and lack of productivity in the market. The solution is to abolish the Federal Reserve. The last time the Federal debt was paid off in American history, was in 1835 when President Andrew Jackson shut down the central bank that preceded the Federal Reserve. Let us not continue to make the same mistakes and allow history to provide us a solid foundation to enact beneficial changes to our current economic policies. Replacing the Federal Reserve will be the Bank of the United States. The Bank of the United States will be a federally owned and operated bank that provides fair interest rates for business investments, individual home mortgages, credit card debt, and automobile loans, just to name a few. Citizens and corporations will borrow directly from the Bank. All profits from the Bank are property of the United States Government. Furthermore, the Bank will provide at-cost, near 0% interest, credit to the federal government. This system provides for an expansionary monetary policy to combat and resolve the issues mentioned earlier. Discount rates will be set between 3-5%, depending on the type of loan. Individual citizens, small businesses, large businesses and banks have the opportunity to borrow directly from the Bank of the United States at the 3-5% discount rate. Private, member banks will most likely create their own, optimized business model as a creditor for businesses and citizens whose loan applications are denied by the Federal Bank. Reserve ratio rates should be increased to the 1960s levels of 12.3%. In conjunction with the easy monetary policy, an expansionary fiscal policy should be enacted. In 2008, you campaigned on the notion of economic prosperity and nation-building at home, in the United States. Let’s create infrastructure projects, such as providing more funding to states for educating the next generation of American youth, provide facilities for private companies for research and development, and increase the productivity of the American people through investments in projects such as road construction and repair, the construction of buildings and commerce centers as well as employing Americans to build cleaner energy facilities such as tidal power plants, wind farms, geothermal power plants and hydroelectric power plants. We will also provide subsidies for American made, electric-based vehicles to the American people. This solution helps solve the automobile maker special interest group, Studebaker Corporation, of which you were the former CEO of, Madame President. Furthermore, this plan will also help alleviate the economic stress of high gas prices. Also, individuals will apply for automobile loans at the Bank of the United States to finance their purchase of the government subsidized electric vehicles. This process will return a large portion, if not all, of the money spent on government subsidies back to the Federal Government, from the return on the interest from the automobile loans. The process of promoting electric vehicles is not only one of the key, fundamental steps toward our path to energy independence, but it will also help fuel tens if not hundreds of thousands of jobs in both the energy and automobile sectors. Now, you will want to know how we plan on paying for these programs. We need to bring troops home. More troops should be stationed here in the USA rather than abroad. Reduce the number of troops in Iraq and Afghanistan to 60,000 by 2030, which will save around $150 billion. Senators Simpson and Bowles drafted a tax plan that will increase federal tax income by nearly $200 billion by 2030. This plan eliminates loopholes while decreasing income taxes. Corporate taxes will be reduced to 28%, versus the currently 35% tax level. This promotes companies to invest in the American people, thereby increasing employment. More importantly, the substantial income from investments and loans made by the Bank of the United States will help fund much-needed infrastructure projects. Moreover, any additional funding needed for nation-building or the financing of debt will be available at a near 0% interest rate from the Bank of the United States. You asked for a solution. Your voter support is dwindling, and now is the time for the "Change” you campaigned on, Madame President."



Sythe members: Please tell me if anything in the speech above is economically inaccurate.

Thank you for your time.

 

what grade did you receive?