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Why? Because the economy has evolved to a point where it is vulnerable to mild depressions. In fact, the one we’re in now could persist for decades, as similar conditions have in Japan and other countries. In order to avoid that slow, painful outcome, we need a policy that will jump-start our economy. After three straight years of political gridlock it’s clear that Congress is not going to provide the fiscal stimulus we need, and while the tools the Federal Reserve has at its disposal have helped, they’ve not done enough. If Congress could be persuaded to give the Fed a new tool, one that would let it distribute purchasing power to the broad mass of the population—to “drop money from helicopters,” so to speak—it might be enough to help us escape the nightmare of slow growth and persistent unemployment we’re in now.

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Federal grant programs are driven by the congressional funding that fills the coffers. As a result, maximum grant awards and general availability change every year.  Currently, annual Pell Grant award maximums hover around $5000 per student.  Some government grants, like FSEOG are distributed on a first-come first-served rotation that continues until funding is exhausted, so time is of the essence. To maximize your access to federal grant dollars, it is essential that you file your FAFSA as early as possible. Free Money On Credit Card

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The third policy option is known as nominal gross domestic product targeting, the major proponent of which is the economist Scott Sumner. The idea is all about self-fulfilling expectations. Recall that the central bank owns the printing press, so it can create arbitrary quantities of dollars. By making a pre-commitment to keep the economy on a particular spending trajectory, self-fulfilling collapses in spending would not happen. Something similar to this policy seems to have kept Australia and Israel out of the Great Recession. But in order to sustain such a policy, the Fed might have to intervene in the economy quite frequently, and then the distributional consequences could be serious. Quantitative easing, for example, helps push up asset prices (the stock market has regained all the ground lost since 2009 and then some), which disproportionately benefits the wealthy. Free Money Machine
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