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Next year, the United States will experience economical catastrophes of unimaginable scale. The world income will dwindle significantly resulting in skyrocketing oil prices. With the foreign dependence on oil, the crisis will adversely affect economy of the United States. As a government economic advisor, I would suggest adopting economic policies aimed at mitigating the unprecedented crisis. Thereafter, I would guide the government during the implementation process of policies aimed at addressing the unsustainable future fiscal policies.

First, I would recommend that the government establish laws and policies that would help to increase fiscal tightening in order to reduce government spending. Currently, the US government is spending enormous amount of taxpayer’s money on military activities. Due to the implementation of appropriate laws and policies, the government would minimize its spending on defense especially on military activities outside the US.

Although the crisis will considerably affect the world economy, the research indicates that some Asian countries may withstand the anticipated fiscal challenges. As the US government advisor, my main obligation will be to advise the government to formulate various policies aimed at insulating the country from the risk. In this regard, I would advise the government to reduce its exposure to countries facing greater risks from the crisis and establish a close relationship with countries capable of withstanding the economic challenges. By so doing, our country will be protected from foreign economic distress.

As for an oil importer, the US governments have previously shown no efforts towards the reduction of foreign oil imports. However, with the rise of world oil prices, the government must take appropriate measures. To achieve this, the government must explore other comparatively cheaper and renewable sources of energy. In the past, energy experts indicated that our country had large deposits of natural gas. Therefore, as the government economic advisor, I would recommend the government to utilize its natural resources fully before resorting to foreign imports. In this way, the government will minimize its spending and, thus, reduce the effects of the anticipated economic crisis.

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