How to Solve Economic Problems?

HOW TO OVERCOMING THE ECONOMY

 

1) How to solve the problem of growth and economic:

1. Improving the quality of education that is worth to society. 
2. Corruption Eradication
3. Creating an independent business
4. Coping with unemployment 
5. Developing Rural savings and loan

2) How to cope with economic instability.In every country of economic instability are common, but this instability should be immediately followed up with the attempts to fix it. These efforts are:

1. Economic empowerment is to stabilize the economy in a small scope is the development of micro-credit activities and microfinance institutions (MFIs) and the development of small and micro enterprises (SMEs). 
2. Create jobs and hold more labor intensive, so with adapnya adequate employment-intensive and more preferably it will help to reduce unemployment. So that was not able to work now can work and can-productivity. With this it will also have an impact on a country's per capita income, due to higher labor force that works it will be higher the increase in per capita. 
3. Eliminating the consumptive nature and be more resource-efficient for undiscovered natural successor or more creative to create substitutes, so that with the increasing need for natural resources and is able to walk in balance. 
4. Government wiser in setting the minimum wage taking into account the needs and lives of the people, so that needs can be used as much as possible so that the welfare of the community can be met either. 
5. For more open government training On The Job Training, with the training for people who are less skilled, it can make these activities as training to get a job. 
6. For the government can orient development more focused on high value-added infrastructure, both in industry and food sectors, so that might be able to make our country not only as an importer but as the first exporter of raw materials.

3) How to cope with unemployment, among others, as follows.

1. Expanding employment opportunities, with new employment opportunities, both in the fields of agriculture, industry, trade, and services. 
2. Improving the quality of education, so that the graduates are already ready to become skilled workers. 
3. Improving the quality of labor, by providing skills training through formal and non-formal education. Provides an opportunity to work abroad, through the distribution of Indonesian Workers (TKI). 
4. Encourage the growth of businesses and home industries. 
5. Provide role KB to reduce the rate of population growth.

4) InflationHow to tackle inflation:

1. The government tried to curb inflation as low as possible because inflation can not be eliminated altogether. 
2. Central banks generally rely on the money supply and / or interest rate as an instrument in controlling price. 
3. Monetary policy by the central bank to influence the way the money supply so that there will be changes in the money supply. 
4. Political strengthen the discount (discount policy), the central bank policy to affect the circulation of money by way of raising and lowering interest rates. 
5. Open market policy (open market policy) is to jalam buy or sell securities. 
6. Determine the cash ratio that is a minimum ratio between the cash held by commercial banks by the number of demand deposits (checks, deposits, etc.) issued by the bank concerned. 
7. Lowering the minimum reserves that amount of money in circulation tends to rise and vice versa if the minimum reserve increased money supply tends to fall.

5) Government measures to resolve the problems of trade and balance of paymentsThe government issued a policy as follows:

1. Policies that investment is made with a portion in order to export so that our trade balance is more controllable. 
2. Fiscal policy is a policy pursued by the government in taxation and government spending / budget to affect aggregate spending. 
3. Monetary policy is a policy pursued by the government / central bank in the money supply and interest rate policy to affect aggregate spending. 
4. Supply side policies are government policies that aim to improve the efficiency of the company, so that the goods and services offered by more and cheaper. 
5. Balance of Payments Policy It is the policy that is used to monitor the state of the balance of payments in order to influence the exchange rate.