Research Article
A Solution to the U.S. Economic Recession under the COVID 19 Pandemic Based on Keynesian Theory and Austrian Economics
@INPROCEEDINGS{10.4108/eai.17-6-2022.2322806, author={Mingyang Li and Liwei Li and Zhenyang Yu}, title={A Solution to the U.S. Economic Recession under the COVID 19 Pandemic Based on Keynesian Theory and Austrian Economics}, proceedings={Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China}, publisher={EAI}, proceedings_a={ICIDC}, year={2022}, month={10}, keywords={the covid 19 pandemic; economic recession; federal reserve; keynesian theory; austrian economics}, doi={10.4108/eai.17-6-2022.2322806} }- Mingyang Li
Liwei Li
Zhenyang Yu
Year: 2022
A Solution to the U.S. Economic Recession under the COVID 19 Pandemic Based on Keynesian Theory and Austrian Economics
ICIDC
EAI
DOI: 10.4108/eai.17-6-2022.2322806
Abstract
The COVID 19 pandemic has had a serious impact on the US economy by warranting policies of lockdown and social distancing that prevent businesses from making profits. This could be one of the reasons lead a recession in the US economy. Under this situation, this paper made a study on how the US government should address its pandemic-induced economic downturn. By analyzing the current economic situation of the United States under the influence of the COVID 19 Pandemic and investigating the existing response measures of the US government and combining the two economic theories of Keynesian and Austrian economics to compare, the paper draws a feasible solution from different economic and social disputes. This paper proposes the combined use of fiscal policies, specifically in increased government spending and decrease tax rate to give information to the entrepreneurs of the current situation of the economics. Additionally, an increase in the money supply can also be imposed.
