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Policymakers can take action to stimulate the economy. Timely and decisive government action may prevent long-term damage to the economy and substantially soften the impact on the most vulnerable.
Stimulus measures can take a variety of forms, including direct payments to individuals, support for small businesses, enhanced unemployment benefits, and support for industries most negatively affected, among others. The correct mix will depend on the unique needs of the moment. The wrong combination of policies may undermine both effectiveness of the stimulus and long-term economic performance.
Past research has demonstrated that some policies are more effective than others at stimulating the economy in the short run. Analysts use the concept of a multiplier to measure the impact of stimulus policies. The multiplier quantifies how much additional economic activity a dollar of government spending creates. The higher the multiplier of a given policy, the more appropriate it is as a stimulus.
Immigration can spur economic growth as well as contribute to the economic, social, and cultural foundation of the nation. American society is aging. Increasing economic growth and meeting labor demands require an ever-increasing number of people. Immigration can, in part, respond to this demand.