Question

What type of policy as president Obama referring to when he says more people spending more money means more business will be able to hire more workers in the entire economy

Answer 1

President Obama was referring to expansionary fiscal policy, a Keynesian approach to stimulate the economy by encouraging consumer spending, leading to job creation and economic growth.

Step-by-step explanation:

President Obama was referring to an expansionary fiscal policy when he mentioned that more people spending more money leads to businesses hiring more workers, thereby stimulating the entire economy. This economic approach aligns with the Keynesian perspective, which advocates for government intervention through increased spending and tax cuts to boost overall demand and pull the economy out of recession. During his presidency, Obama implemented such policies, notably with the early 2009 fiscal stimulus package, which included tax cuts and increases in government spending to combat the effects of the Great Recession.

Answer 2

I believe President Obawa was talking about the policy to cut the Tax for the middle-class.
By cutting the tax rate, the middle class will have more money at their disposals. This means that small business will be able to hire more employees and reduce the unemployment rate to fix the Economy.