Income Gap...

i think this was the right time in the US to complement monetary policy with fiscal policy. The government should come up with a plan that can raise wages and income, and, demand. There has been a productivity and wages/income gap within the economy since 1970. The US tried to devalue its currency in an attempt to cash foreign demand by putting more money in the other country’s people’s pockets with out any labor (at least, there is no binding) in the form of exchange rate, especially when the currency depreciates. Then why not the US government is putting more money in people’s pocket in its own country… The government has to simply take care of people below poverty… i mean the government should increase spending on the poorest but then I see that the people are already covered with food and health insurance. But this spending has made the government budget bloated by crowding out private businesses. The timing was not right. Keyes has advocated fiscal policy in the face of recession and liquidity trap. But Classicals advocated supply side (production) to push wages and demand. Any policy ultimately, if it is good, affects income positively in any form from any side, monetary and fiscal. When government spends and taxes it is fiscal and when the Reserve- Bank moves its monetary because it affects money supply. Interest rates are already zero and QE is an unconventional tool. But both monetary and fiscal policy can boost incomes and demand…