Hyrum Portlock 4/23/2019 ECON2020-Morgan

How the Federal Reserve Bank and Immigration

Policies Reform Affect our Community

There are several things in our economy that have to deal with economics. Economics is

the social science that helps us observe the production, consumption of goods, and distribution of

the goods. When we turn to economics in the world on the macroeconomic bases we think of

how the behavior and interaction of the economy effect on a large scale dealing with interest rate

and national productivity. I like to think of macroeconomics as how the economy and business

affects the nation and how we respond to changes in society. Several major macroeconomic

topics that we will discuss further are the roles of the Federal Reserve Bank in out

Macroeconomy as well as the immigration Policies and reform. Each one of these will help us

understand how they play a big part in not only the Macroeconomy world but in my personal life

that I live in.

The Federal Reserve bank is Americas central bank. This means that it manages all the

money that comes in and out of the US through taxes, trade and inflation. After reading in “the

balance; The Federal Reserve and What Is Does” Kimberly Amadeo discusses what the System

Structure and what it has to do with the bank, she states “The Federal Reserve System has three

components. The Board of Governors.., Staff economist.., and the Federal open market

committee” each three work together to make the system of the Bank and ensure that it continues

to work and that the Marginal Principle is in check with helping the marginal benefit equal the

marginal cost in society. The Federal Reserve Bank has three functions; manage Inflation,

Supervise the banking system, maintain the stability of the financial system and provide the
Hyrum Portlock 4/23/2019 ECON2020-Morgan

banking services. Others believe and will argue that not only does the Federal Reserve Bank

follow through with these services; they also have significantly devalued our currency while

being secret in every act they perform, and that they are making our economy less stable.

While the Federal Reserve manages inflation in the economy we have to take into

consideration of what our opportunity Cost would be if we were able to reduce inflation in the

economy, this would allow the Feds to lower credit rates as its next best alternative choice. This

will also allow for unemployment to reduce and businesses to thrive in GDP. I am grateful for

this knowledge in my life because I can contribute to the economy in a microeconomic sense to

help the Federal Reserve manage inflation so that it doesn’t go to high. According to Amadeo “

The Federal Reserve oversees roughly 5,000 bank holding companies, 850 state bank members

of the Federal Reserve Banking System, and any foreign banks operating in the United States”

They are supervising the Banking systems that we have in place. This is a great example of the

spillover principle, if the banks become too big to fail it is usually turned over to the Federal

Reserve supervision which in some circumstance the buyers and sellers don’t have and can’t

carry the costs of transaction in their banks. As the Federal Reserve Bank maintains the stability

of the financial system is works very closely with the Treasury Department to “Prevent any

global financial collapse” as occurred in 2008 when there was a financial crisis. The services

provided in the banking system correlates with how the government maintains the stability by

buying the U.S treasuries from the federal government.

By learning about the Role of the Federal Reserve Bank in out Macroeconomy it leads us

to the fact that the United States is actually in lots of debt. In my eyes we are not very stable and
Hyrum Portlock 4/23/2019 ECON2020-Morgan

the The Reality Principle of money declines for people who know that the real value of income is

important for our growth in the United States. Having debt shows that the nominal value is not

worth it. Looking at the US national debt we are currently at $22.236,236,800,000 in debt as

April 24th 2019 and is going up in debt about 100,000.00 per minute. That is more than twice my

Gross income in one year. What is the Federal Reserve Bank doing to manage this and find ways

to deplete our debt? Would raising the taxes do this? According to Investopedia, they state that

The government will raise bonds to raise money so they can stimulate spending without

increasing taxes. Governments can also maintain low interest rates so that borrowing becomes

easier and more frequent. They also talk about spending cuts and in fact, raising taxes to reduce

debt.

Immigration Policies in our government are a very touchy subject in our politics. In our

economy many may believe that immigration is a wonderful thing that helps bring many workers

to help our economy while others believe that they take US jobs and send all the money back

home. According to “4 myths about how immigrants affect the U.S economy” Gretchen Frazee

states that that there are 4 myths which are, 1. Immigrants take more from the U.S governments

than they contribute 2. Immigrants take American Jobs. 3. The U.S economy does not need

immigrants. 4. It would be better for the economy if immigrants’ children were not citizens.

Again these are myths however it is important to note that there are roughly 40 million

immigrants in the US accounting for about 13 percent in our population, about half of the 40

million are naturalized US citizens. How would you think we could use immigrants to boost our

economy? Personally as my feelings towards this in a macroeconomic life I think that our

opportunity Cost of making it a big deal and deporting so many people for lots of money we can

all work together to grow the economy up.

Hyrum Portlock 4/23/2019 ECON2020-Morgan

There are several things in our economy that have to deal with economics. Economics is

the social science that helps us observe the production, consumption of goods, and distribution of

the goods. When we turn to economics in the world on the macroeconomic bases we think of

how the behavior and interaction of the economy effect on a large scale dealing with interest rate

and national productivity. I like to think of macroeconomics as how the economy and business

affects the nation and how we respond to changes in society. Several major macroeconomic

topics that we will discuss further are the roles of the Federal Reserve Bank in out

Macroeconomy as well as the immigration Policies and reform. Each one of these will help us

understand how they play a big part in not only the Macroeconomy world but in my personal life

that I live in. The role of the Federal Reserve Bank and immigration policies and reform may be

two very different areas within the Macroeconomy though they both teach us many important

truths to how the economy functions within our personal, business and community/national life.

With many things in our economy, this science will continue to help us as individuals

find resolutions that will help us observe the production, consumption and distribution of goods.

This class has helped me understand how this occurs in our Macroeconomy though real like

observation of the economy and community around us.

Hyrum Portlock 4/23/2019 ECON2020-Morgan

Citations

-Amadeo, K. (2019, February 18). The federal reserve and what it does. Retrieved April 23, 2019, from
https://www.thebalance.com/the-federal-reserve-system-and-its-function-3306001

-https://www.usdebtclock.org/

-Borowski J. (2012, February 1) The top 10 Reasons to End the Federal Reserve, Retrieved April
23, 2019, from http://www.freedomworks.org/content/top-10-reasons-end-federal-reserve

-Costa, D. Cooper, D and Shierholz, H (2014, August 12). Facts About Immigration and the U.S Economy.,
Retrieved April 23, 2019, from https://www.epi.org/publication/immigration-facts/