Economic Policy. Jacob Dean, Alan Avilez
|
|
- Shanon Cameron
- 5 years ago
- Views:
Transcription
1 Economic Policy Jacob Dean, Alan Avilez
2 Basics - Economy is complex - Economic Theories - Market Economy - Supply / Demand - Capitalist economy ~ Market economy
3 Laissez-Faire Economics - Absence of government control - Natural selection - Individual pursuit of profits serves the broad interest of society - Efficient Market Hypothesis - markets naturally create fair prices
4 Economic Crises - Aggregate Demand - what consumers will spend on goods - Productive Capacity - Total value of goods that can be produced - When not balanced -Depression - high unemployment / business failures -Inflation - price increases / decrease in value of currency -Stagflation - slow growth, unemployment, inflation
5 Keynesian Theory - Aggregate demand can be adjusted through fiscal/monetary policy - Fiscal Policy - Economic policies that involve government spending and taxing - Monetary Policy - Economic policies that involve control of, and changes in, the supply of money. - Most economists accept theory to some degree
6 Monetary Policy - Monetarists - Argue hard to implement then stop spending programs - Argue government can control economy using the money supply
7 Federal Reserve System - Central Banking System in the US - Controls inflation, maintain unemployment to a minimum, ensure moderate interest rates - Buying/selling securities -Takes money in/out of circulation - Discount Rate: Interest rate banks pay when they borrow money - Reserve Requirement: Amount of cash that banks are required to keep on deposit
8 Federal Reserve Board - Controls Federal Reserve System - Seven members - appointed by president - Staggered terms of 14 years - Board meant to be independent of congress and president - Make decisions without worrying about political implications - Can act faster
9 Federal Reserve Board -Ben Bernanke - Federal Reserve Chair -Replaced Alan Greenspan - market best left unregulated crisis -arranged bank purchases -emergency loan programs -low interest rates
10 Supply-Side Economics - Used by Reagan to deal with stagflation -More demand than supply -Didn t work well - Aims to increase supply - To increase production -Tax cuts (larger for the rich) -Less government regulation of business
11 Government Spending -President proposed budget, congress approves it -Budget and Accounting Act of Gives president responsibility of preparing budget -Office of Management and Budget (OMB) - Assists with presidents budget -Congress - Constitutional authority to raise and spend funds
12 The Budget -Used to be created by congress alone until Commerce Clause -After industrialization/wwi president proposed budget -centralizes budget creation process
13 The Budget -Submitted annually for fiscal year (Oct 1 - Sept 30) -Defines budget authority - how much government agencies are authorized to spend on certain programs -Defines budget outlays - how much government agencies are expected to spend (expenditures) -Receipts - how much is expected in taxes and other revenue
14 Deficit -When government spend more money than it collects -National debt - sum of all unpaid government deficits -$18 trillion -46% owed to foreigners congress created debt ceiling -increased over 100 times to accommodate debt
15 Preparing the President s Budget -OMB meets with president to determine economic situation and budgetary priorities -Requests spending projections from agencies -OMB makes recommendations to president -President gives more precise guidelines -Political Negotiations
16 Passing the Congressional Budget -Tax Committees - responsible for raising revenue -Authorization Committees - jurisdiction over particular legislative subjects -Appropriations Committees - set aside funds for certain programs
17 Passing the Congressional Budget -Congressional Budget Office 1974 (CBO) -Meant to supervise budget review process -Created deficits -Budget Enforcement Act of 1990 (BEA) -Mandatory spending - entitlements, in law -Discretionary spending - created caps -Led to surplus in Balanced Budget Act (1997) - surplus by discretionary spending caps expired, led to deficit since
18 Tax Policy -Basic goals -meet budget expenditure -make tax burden more equitable to taxpayers -control the economy -Complicating issue -ability to pay vs. benefits received -promote social goals -Complicated tax code
19 Tax Policy -Flat tax - everybody pays at same rate -Progrogressive taxation - rich pay proportionally higher taxes than the poor -uses tax brackets -16th amendment (1914) - Proposed by President Taft. reformed the Constitution to allow for the Federal Income tax.
20 Tax Reform -Reagan - two tax brackets, 28% for highest -George H. W. Bush - three tax brackets, 31% for highest -Clinton - four tax brackets, 39.6% for highest -George W. Bush - $1.35 trillion tax cut -led to deficit -Obama - stimulus package grew deficit -annual budget deficit of $1 trillion -campaigned to restore 39.6% for highest
21 Tax Reform -Taxes are comparatively lower than 50 years ago -US taxes lower than other european countries
22 Spending -$4 trillion budget -Biggest expenditures -National Defense (18%) -Social Security (22%) -Income Security -Medicare -Health -Government spending tends to increase
23 Spending Increases -Incremental budgeting - Agencies adding new funds onto budget each year - Agencies budgets rarely get cut back -Uncontrollable Spending - Mandatory outlays that the government is obligated to pay - Make up 65% of spending - ex. social security
24 Economic Equality -Requires redistributing wealth from the rich to the poor -Transfer payment -ex. social security, unemployment insurance -Progressive income tax -Other taxes not progressive -ex. taxes on investments
25 Income Gap -Income gap has increased since 1960 s -US has one of the largest income gaps -Highest 20% % of income -Lowest 20% - 3.4% of income -Interest groups / pluralist democracy -Americans unwilling to put heavy taxes on rich
26 Current Policy Initiatives March 4, 2014: President Obama proposed US budget for $3.9 trillion to be used in the 2015 Fiscal Year. April 1, 2014: House Budget Committee chairman Paul Ryan proposes Republican Budget Plan for the 2015 Fiscal budget. February 2, 2014: Obama proposes 2016 Budget for $4 Trillion
27 FRQ # Fiscal policy and monetary policy are two tools used by the federal government to influence the United States economy. The executive and legislative branches share the responsibility of setting fiscal policy. The Federal Reserve Board has the primary role of setting monetary policy. (a) Define fiscal policy. (b) Describe one significant way the executive branch influences fiscal policy. (c) Describe one significant way the legislative branch influences fiscal policy. (d) Define monetary policy. (e) Explain two reasons why the Federal Reserve Board is given independence in establishing monetary policy.
28 A. Define Fiscal Policy (1 point) Answer: Economic Policies that involve government spending and taxing. Acceptable Definitions Include: -Taxing and/or spending -The budget
29 B. Describe one significant way the executive branch influences fiscal policy. (1 point) Answer: The executive branch proposes a budget for each fiscal year which is the basis of federal spending. Acceptable Descriptions Include: -The president proposes/prepares the federal budget. -The president signs/vetoes legislation (related to taxing, spending, and borrowing, not generic). -The White House Office of Management and Budget (OMB) recommends the budget.
30 C. Describe one significant way the legislative branch influences fiscal policy. (1 point) Answer: All bills dealing with taxing and spending must go through congress. Acceptable Descriptions Include: -Congress passes the federal budget. -Congress acts on tax and spending legislation. -The Congressional Budget Office (CBO) advises Congress on economic policies.
31 D. Define monetary policy. (1 point) Answer: Economic policies that involve control of, and changes in, the supply of money. Acceptable Definitions Include: -Regulating the money supply. -Controlling inflation/deflation. -Adjusting interest rates to regulate the economy. -Adjusting bank reserve requirements. -The cost of money.
32 E. Explain two reasons why the Federal Reserve Board is given independence in establishing monetary policy. (2 points) Answer: One reason why the Federal Reserve Board is given independence in establishing monetary policy is remove politics from monetary policy decision making. Another reason is it allows the Federal Reserve Board to act quickly and efficiently.
33 Acceptable Explanations Include: -It removes politics from monetary policy decision making. -Congress/the president can abdicate responsibility for difficult decisions by delegating decision-making power. -The Federal Reserve Board relies on expertise when making decisions. -The Federal Reserve Board makes economic policies efficiently.
ECONOMIC POLICY AND THE CHALLENGE OF DEMOCRACY
CHAPTER 18 Economic Policy LEARNING OBJECTIVES After reading this chapter you should be able to Define the key terms at the end of the chapter. Compare and contrast laissez-faire, Keynesian, monetarist,
More informationTools of Budget Analysis (Chapter 4 in Gruber s textbook) 131 Undergraduate Public Economics Emmanuel Saez UC Berkeley
Tools of Budget Analysis (Chapter 4 in Gruber s textbook) 131 Undergraduate Public Economics Emmanuel Saez UC Berkeley 1 GOVERNMENT BUDGETING Debt: The amount borrowed by government through bonds to individuals,
More informationPost-Election Fiscal Drama in the United States: A Real Cliffhanger. Jay K. Rosengard, Kennedy School of Government, Harvard University
Post-Election Fiscal Drama in the United States: A Real Cliffhanger Jay K. Rosengard, Kennedy School of Government, Harvard University 1 2010 Canon Institute Presentation The Global Economic Crisis: Mitigating
More informationWilliam R. Emmons October 18, 2011
Bringing i The Federal Deficit Under Control William R. Emmons October 18, 2011 The views expressed here are mine alone, and do not necessarily represent the views of the Federal Reserve Bank of St. Louis
More informationFACT SHEET CBO BUDGET OUTLOOK FY
FACT SHEET CBO BUDGET OUTLOOK FY 2008-2018 PREPARED BY: MAJORITY STAFF, SENATE BUDGET COMMITTEE January 24, 2008 CBO Budget Outlook Shows Higher Deficit in 2008; Bleak Long-Term Picture Remains Unchanged
More informationChapter 14: The Congress, the President, and the Budget: The Politics of Taxing and Spending
Chapter 14: The Congress, the President, and the Budget: The Politics of Taxing and Spending 1. In the 2000 presidential election, the candidate who argued that the budget surplus should be used for a
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Budget, Bureaucracy, Economic Policy-Making Name: MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1. Taxing, spending, and borrowing decisions by
More informationTotal Revenues and Outlays
CHAPTER 1: THE BUDGET OUTLOOK THE BUDGET AND ECONOMIC OUTLOOK: 217 TO 227 Figure 1-2. Total Revenues and Outlays Percentage of Gross Domestic Product 28 2 Outlays Average Outlays, 1967 to 216 (2.3%) Projected
More informationBudget, Bureaucracy, Economic Policy-Making
Budget, Bureaucracy, Economic Policy-Making MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1. Taxing, spending, and borrowing decisions by Congress
More informationDefining the problem: the difference between current deficit and long-term deficits
KEY POINTS FOR FEDERAL DEFICIT DISCUSSIONS Overview: Unless our budget policies are changed, the imbalance between spending and revenues will eventually become unsustainable rapidly rising debt will threaten
More informationPresident Obama s Fiscal Year 2010 Budget
President Obama s Fiscal Year 2010 Budget February 26, 2009 Facing the legacy of deep deficits and an economic crisis inherited from the previous Administration, the President today released an outline
More informationCH 31 sample questions
Class: Date: CH 31 sample questions Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The federal budget is defined as a. a monthly statement of expenditure
More informationThe Congress, the President, and the Budget: The Politics of Taxing and Spending
The Congress, the President, and the Budget: The Politics of Taxing and Spending National Debt, Budget Deficits and Surpluses How much money the government owes. http://zfacts.com/p/461.html Deficit: expenditures
More informationChapter 14. Introduction. Learning Objectives. Deficit Spending and The Public Debt. Explain how federal government budget deficits occur
Chapter 14 Deficit Spending and The Public Debt Introduction In adopting the euro, European nations agreed to abide by the Stability and Growth Pact. The pact called for limitations on government spending
More informationINTRODUCTION THE GOVERNMENT S SOURCES OF REVENUE
C HAPTER OVERVIEW INTRODUCTION The central political issue for many years has been how to pay for policies that most people support. A budget is a policy document allocating burdens (taxes) and benefits
More informationReading Essentials and Study Guide
Lesson 2 Federal Government Finances ESSENTIAL QUESTION How does the government collect revenue, and on what is that revenue spent? Reading HELPDESK Academic Vocabulary coincide to happen or exist at the
More informationChapter 25 Fiscal Policy Principles of Economics in Context (Goodwin, et al.)
Chapter 25 Fiscal Policy Principles of Economics in Context (Goodwin, et al.) Chapter Overview This chapter introduces you to a formal analysis of fiscal policy, and puts it in context with real-world
More informationThe Congress, the President, and the Budget: The Politics of Taxing and Spending
Government in America: People, Politics, and Policy Thirteenth Edition, and Texas Edition Edwards/Wattenberg/Lineberry Chapter 14 The Congress, the President, and the Budget: The Politics of Taxing and
More informationBalancing the U.S. Budget. Professor Kevin Mumford August 6, 2012
Balancing the U.S. Budget Professor Kevin Mumford August 6, 12 Presentation Ground Rules No Normative Analysis I will try to answer what happened? or what would happen if? questions Normative questions
More informationUnderstanding the Federal Budget 1
Understanding the Federal Budget 1 "For in the end, a budget is more than simply numbers on a page. It is a measure of how well we are living up to our obligations to ourselves and one another." --From
More informationChapter 10. Fiscal Policy. Macroeconomics: Principles, Applications, and Tools NINTH EDITION
Macroeconomics: Principles, Applications, and Tools NINTH EDITION Chapter 10 Fiscal Policy Learning Objectives 10.1 Explain how fiscal policy works using aggregate demand and aggregate supply. 10.2 Identify
More informationTHE PRESIDENT S BUDGET REQUEST FOR FY 2013
National Priorities Project s Data for Democracy Webinar Series The President s FY2013 Budget Request March 2012 Slide #1 THE PRESIDENT S BUDGET REQUEST FOR FY 2013 In this webinar, we will discuss: The
More informationSetting the Annual Budget
14 Fiscal Policy Introduction The 2000s have been a decade of fiscal policy: The Economic Stimulus Act of 2008 cost $152 billion. The American Recovery and Reinvestment Act of 2009 was a $789 billion package
More informationChapter Eight: Government Budgeting
Chapter Eight: Government Budgeting Foundations of Modern Government Budgeting Pre-Civil War, budgeting informal Federal budget under $1 billion Budgetary process fragmented After 1870s, national economy
More information20. President embraced supply-side economics.
1. A good method of evaluating a countryís amount of national debt, according to the authors, is a. looking at the raw amount of debt, without any fancy statistics. b. looking at the amount of debt controlling
More informationSlide Set 17: The Debt and the Deficit
Economics 1 Slide Set 17: The Debt and the Outline: s and the National Debt Definitions: measuring the deficit and debt Historical facts Current Events: Tax cuts for the rich? What is fair? Social Security
More informationChapter 16: Financing Government Section 2
Chapter 16: Financing Government Section 2 1 Objectives 1. Describe federal borrowing. 2. Explain how the Federal Government s actions can affect the economy. 3. Analyze the causes and effects of the public
More informationChart Book: Deficit Reduction, the Economy, And the Budget Negotiations By Sharon Parrott, Richard Kogan, Krista Ruffini, and William Chen
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org www.cbpp.org November 5, 2013 Chart Book: Deficit Reduction, the Economy, And the Budget Negotiations
More informationExam ch 16 PRACTICE 2014
Exam ch 16 PRACTICE 2014 1. The most important tool the government has for directing the economy is a. its control over trade racy. b. its control over government subsidies. c. its control over labor laws.
More informationUNIT 3B KEYNESIAN ECONOMICS AND FISCAL POLICY THE ROLE OF GOVERNMENT IN THE ECONOMY
UNIT 3B KEYNESIAN ECONOMICS AND FISCAL POLICY THE ROLE OF GOVERNMENT IN THE ECONOMY The slides with the s include information not covered on the AP Exam and thus will not be on the unit test. AD = C +
More informationCHAPTER 15 THE CONGRESS, THE PRESIDENT, AND THE BUDGET: THE POLITICS OF TAXING AND SPENDING CHAPTER OUTLINE
CHAPTER 15 THE CONGRESS, THE PRESIDENT, AND THE BUDGET: THE POLITICS OF TAXING AND SPENDING CHAPTER OUTLINE I. Introduction (pp. 493-496) A. A budget is a policy document allocating burdens and benefits.
More informationThe Federal Budget: Sources of the Movement from Surplus to Deficit
Order Code RS22550 Updated November 8, 2007 Summary The Federal Budget: Sources of the Movement from Surplus to Deficit Marc Labonte Specialist in Macroeconomics Government and Finance Division The federal
More informationReducing the Budget Deficit: Tax Policy Options
Reducing the Budget Deficit: Tax Policy Options Molly F. Sherlock Analyst in Economics September 20, 2011 CRS Report for Congress Prepared for Members and Committees of Congress Congressional Research
More information1 of 15 12/1/2013 1:28 PM
1 of 15 12/1/2013 1:28 PM Policy tools include Population growth, spending behavior, and invention. Wars, natural disasters, and trade disruptions. Tax policy, government spending, and the availability
More informationTHE CHANGING BUDGET OUTLOOK: CAUSES AND IMPLICATIONS
THE CHANGING BUDGET OUTLOOK: CAUSES AND IMPLICATIONS By William G. Gale, Peter Orszag, and Gene Sperling William G. Gale (wgale@brookings.edu) holds the Arjay and Frances Fearing Miller Chair in Federal
More informationReducing the Budget Deficit: The President s Fiscal Commission and Other Initiatives
Reducing the Budget Deficit: The President s Fiscal Commission and Other Initiatives Mindy R. Levit Analyst in Public Finance May 13, 2011 Congressional Research Service CRS Report for Congress Prepared
More informationDisclosure 11/1/2011. From Jeff Bush
From Jeff Bush The views and opinions expressed in this presentation are those of the author and presenter and do not necessarily reflect the views and opinions of the sponsoring companies or their affiliates.
More informationCan America Govern Itself? Deficits, Debt, and Delay
Can America Govern Itself? Deficits, Debt, and Delay Ron Haskins Senior Fellow, The Brookings Institution Senior Consultant, The Annie E. Casey Foundation Brookings Mountain West University of Nevada,
More informationCONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE CBO. The Budget and Economic Outlook: Fiscal Years 2012 to 2022
CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE The Budget and Economic Outlook: Fiscal Years 2012 to 2022 4 2 0-2 -4-6 -8-10 Actual Deficits or Surpluses (Percentage of GDP) s Baseline Projection
More informationworking paper President Obama s First Budget By Veronique de Rugy No March 2009
No. 09-05 March 2009 working paper President Obama s First Budget By Veronique de Rugy The ideas presented in this research are the author s and do not represent official positions of the Mercatus Center
More informationUnraveling the Mythology
Has the American Economy Tanked? If so, what should the U.S. do? Elliott Parker, Ph.D. Professor of Economics University of Nevada, Reno September 9, 2011 Unraveling the Mythology It ain't what you don't
More informationFEDERAL RESERVE ECONOMIC DATA (FRED) AND FEDERAL BUDGETS LESSON FRED Activity Worksheet
FEDERAL RESERVE ECONOMIC DATA (FRED) AND FEDERAL BUDGETS LESSON FRED Activity Worksheet Directions Part A 1. Access the FRED Dashboard: https://research.stlouisfed.org/dashboard/14943 2. Use the President
More informationWikiLeaks Document Release
WikiLeaks Document Release February 2, 2009 Congressional Research Service Report RS22550 The Federal Budget: Sources of the Movement from Surplus to Deficit Marc Labonte, Government and Finance Division
More informationCRS Report for Congress Received through the CRS Web
Order Code RS22128 April 27, 2005 CRS Report for Congress Received through the CRS Web Summary Discretionary Spending: Prospects and History Philip D. Winters Analyst in Government Finance Government and
More informationBush Still on Track to Borrow $10 Trillion by 2014 According to Latest Official Estimates
Citizens for Tax Justice 202-626-3780 January 30, 2004, 7 pp. Contact: Bob McIntyre Bush Still on Track to Borrow $10 Trillion by 2014 According to Latest Official Estimates Recent estimates from the Congressional
More informationIntroduction The federal government runs a deficit when spending (mandatory, discretionary, and interest payments on the debt) is greater than revenue
A Sustainable Budget Deficit: Overview of Major Expiring Policies in 2011 and 2012 and Their Budgetary Impact Margot L. Crandall-Hollick Analyst in Public Finance December 16, 2011 CRS Report for Congress
More informationmacro macroeconomics Government Debt (chapter 15) N. Gregory Mankiw
macro Topic 14: (chapter 15) macroeconomics fifth edition N. Gregory Mankiw PowerPoint Slides by Ron Cronovich 2002 Worth Publishers, all rights reserved In this chapter you will learn about the size of
More informationThe Legacy of the 2001 and 2003 Bush Tax Cuts
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org www.cbpp.org Updated October 23, 2017 The Legacy of the 2001 and 2003 Bush Tax Cuts By Emily Horton
More informationTestimony of Dean Baker. Before the Subcommittee on TARP and Financial Resources of the House Committee on Oversight and Government Reform
Testimony of Dean Baker Before the Subcommittee on TARP and Financial Resources of the House Committee on Oversight and Government Reform Hearing on "Does the Administration s Mandate on Project Labor
More informationRyan Plan Gets 69 Percent of Its Budget Cuts From Programs for People With Low or Moderate Incomes By Richard Kogan and Joel Friedman
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org www.cbpp.org April 8, 2014 Ryan Plan Gets 69 Percent of Its Budget Cuts From Programs for People
More informationChapters Test Review
Name Date Period Chapters 16-18 Test Review Ch 16 - Economic & Social Welfare Policymaking 1. is best understood as the rate at which prices for goods and services increase. 2. is best understood as the
More informationThe American Debt Burden
The American Debt Burden Can America Repay its Public Debt? Mohamed Rabie In June 1025, the US public debt exceeded $18.3 trillion, or 105% of the US Gross Domestic Product or GDP. In light of these facts,
More informationMacroeconomic Policy Debates
17 Macroeconomic Policy Debates Chapter Summary In this chapter we explored three topics that are the center of macroeconomic policy debates today. Here are the key points to remember: A deficit is the
More informationUNITS 12-13: FIXING AN ECONOMY: FISCAL & MONETARY POLICY WORKSHEET USE THE LECTURE NOTES TO ANSWER THE FOLLOWING QUESTIONS (10 pts each)
DUE DATE: NAME: UNITS 12-13: FIXING AN ECONOMY: FISCAL & MONETARY POLICY WORKSHEET USE THE LECTURE NOTES TO ANSWER THE FOLLOWING QUESTIONS (10 pts each) 1. John Keynes suggested that government should
More informationAN ANALYSIS OF THE RECENT DETERIORATION IN THE FISCAL CONDITION OF THE U.S. GOVERNMENT
September 2004 AN ANALYSIS OF THE RECENT DETERIORATION IN THE FISCAL CONDITION OF THE U.S. GOVERNMENT Per Capita Net Federal Debt 1998 to 2004* (Actual Debt Compared to CBO January 2001 Forecast) $16,000
More informationReducing the Budget Deficit: Tax Policy Options
Reducing the Budget Deficit: Tax Policy Options Molly F. Sherlock Analyst in Economics May 17, 2011 Congressional Research Service CRS Report for Congress Prepared for Members and Committees of Congress
More informationIntroduction. Learning Objectives. Chapter 13. Fiscal Policy
Copyright 2011 by Pearson Education, Inc. Chapter 13 Fiscal Policy All rights reserved. Introduction Government expenditures on health care services have grown significantly since federal and state government
More informationRecommendations for the Special Joint Committee on Deficit Reduction
Recommendations for the Special Joint Committee on Deficit Reduction The Criteria Any Deficit Plan Must Meet and a Recommendation that Does So By Michael Ettlinger and Michael Linden September 2011 Introduction
More informationunusually small at the end of 2017 and the beginning of 2018 as a result of debt-ceiling constraints.
88 The Budget and Economic Outlook: 2018 to 2028 April 2018 unusually small at the end of 2017 and the beginning of 2018 as a result of debt-ceiling constraints. Second, the government s need for cash
More informationReducing the Budget Deficit: Tax Policy Options
Reducing the Budget Deficit: Tax Policy Options Molly F. Sherlock Analyst in Economics July 13, 2011 Congressional Research Service CRS Report for Congress Prepared for Members and Committees of Congress
More informationAP Gov Chapter 17 Outline
A major economic policy issue is how to maintain stable economic growth without falling into either excessive unemployment or inflation (rising prices). Key concept: Inflation, a sustained rise in the
More informationUnit #3: The Government and the Economy
Copyright by The McGraw-Hill Companies, Inc. Chapter 9: Sources of Government Revenue Section #1: The Economics of Taxation I. Economic Impact of Taxes A. Resource Allocation What can happen to the factors
More informationNational Government Spending, Revenues, and Resulting Surpluses or Deficits , in Billions of Constant (2002) Dollars
Summary of National Government Budget Data 15 National Government Spending, Revenues, and Resulting Surpluses or Deficits 1792-192, in Billions of Constant (22) Dollars 1 5-5 -1-15 1792 182 1812 1822 1832
More informationRecovery? What Recovery?
ABC NEWS/WASHINGTON POST POLL: RECOVERY? SAYS WHO? EMBARGOED FOR RELEASE AFTER 12:01 a.m. Friday, Oct. 23, 2009 Recovery? What Recovery? From the public s perspective, the rumors of economic recovery are
More informationObjectives for Class 26: Fiscal Policy
1 Objectives for Class 26: Fiscal Policy At the end of Class 26, you will be able to answer the following: 1. How is the government purchases multiplier calculated? (Review) How is the taxation multiplier
More informationThe Federal Budget: Issues for FY2014 and Beyond
The Federal Budget: Issues for FY2014 and Beyond Mindy R. Levit Analyst in Public Finance May 9, 2013 CRS Report for Congress Prepared for Members and Committees of Congress Congressional Research Service
More informationFiscal Cliff Part II The Debt Ceiling Looms
Market Insights January 2013 Fiscal Cliff Part II The Debt Ceiling Looms The first fiscal cliff to be avoided was sealed at the last minute at the end of 2012. Tax rates for 99% of households will remain
More informationECONOMIC POLICY. and PUBLIC POLICY
ECONOMIC POLICY and PUBLIC POLICY The Roots of Government Participation in the Economy For the first 100 years of our nation, most economic issues were controlled by the states not the national government.
More informationBALANCING THE FEDERAL BUDGET: ECONOMIC RATIONALE AND ISSUES
BALANCING THE FEDERAL BUDGET: ECONOMIC RATIONALE AND ISSUES Glenn H. Miller, Jr. Federal Reserve Bank of Kansas City This paper will touch only the surface of the many economic issues surrounding the question
More informationIntroduction. Learning Objectives. Chapter 13. Fiscal Policy
Chapter 13 Fiscal Policy Introduction Government expenditures on health care services have grown significantly since federal and state government began covering payments for various types of health-related
More informationThe key differences between the Cooper-LaTourette plan and the Simpson-Bowles commission plan are:
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org www.cbpp.org March 28, 2012 COOPER-LATOURETTE BUDGET SIGNIFICANTLY TO THE RIGHT OF SIMPSON-BOWLES
More informationtbo The Budget Outlook Is Even Worse than Reported BY: DEMIAN BRADY A publication of the National Taxpayers Union Foundation FEBRUARY 8, 2019
tbo The Budget Outlook Is Even Worse than Reported BY: DEMIAN BRADY FEBRUARY 8, 2019 A publication of the National Taxpayers Union Foundation Introduction The Congressional Budget Office (CBO) has published
More informationHistory of the U.S. Federal Budget,
nationalpriorities.org research@nationalpriorities.org (413) 584 9556 February 13, 2014 History of the U.S. Federal Budget, 2011 2013 Recently the nation has endured one Congress-made, budget-related crisis
More informationPOLITICAL SCIENCE 4333 POLICY, POLITICS, AND THE BUDGET
"Money is with propriety considered as the vital principle of the body politic; as that which sustains its life and motion, and enables it to perform its most essential functions. A complete power therefore
More informationEconomics 10020/20020 Principles of Macroeconomics The Government & Fiscal Policy
on Economics 10020/20020 Principles of Macroeconomics & Dennis C. Plott University of Notre Dame Department of Economics www.dennisplott.com Spring 2015 Dennis C. Plott (Notre Dame) & ECON 10020/20020
More informationUnderstanding the National Debt and the Debt Ceiling
Understanding the National Debt and the Debt Ceiling Introduction On September 8, 2017, Congress passed and President Trump signed into law a temporary suspension of the national debt limit (also known
More informationThe Bush Tax Cuts and the Economy
Thomas L. Hungerford Specialist in Public Finance December 10, 2010 Congressional Research Service CRS Report for Congress Prepared for Members and Committees of Congress 7-5700 www.crs.gov R41393 Summary
More informationMORE THAN HALF OF BLACK AND HISPANIC FAMILIES WOULD NOT BENEFIT FROM BUSH TAX PLAN. by Isaac Shapiro, Allen Dupree and James Sly
820 First Street, NE, Suite 510, Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org http://www.cbpp.org February 15, 2001 MORE THAN HALF OF BLACK AND HISPANIC FAMILIES WOULD NOT BENEFIT
More informationStatement of. Ben S. Bernanke. Chairman. Board of Governors of the Federal Reserve System. before the. Committee on the Budget
For release on delivery 10:00 a.m. EST February 28, 2007 Statement of Ben S. Bernanke Chairman Board of Governors of the Federal Reserve System before the Committee on the Budget U.S. House of Representatives
More informationThe views and opinions expressed in this presentation are those of the author and presenter and do not necessarily reflect the views and opinions of
The views and opinions expressed in this presentation are those of the author and presenter and do not necessarily reflect the views and opinions of the sponsoring companies or their affiliates. Disclosure
More informationOverview of the Federal Budget
Congressional Budget Office April 17, 2015 Overview of the Federal Budget Presentation to the Maryland Association of CPAs, Inc. Barry Blom Principal Budget Analyst, Projections Unit This presentation
More informationThe Tax Reform Agenda. Martin Feldstein
The Tax Reform Agenda Martin Feldstein The good news about our tax system is that, over the years, our tax rules have been getting better. Those who write the tax laws have been listening to the advice
More informationUnemployment that occurs at the natural rate of output is called:
ECON 1A Macroeconomics Lecture Notes: Chapter 11 - Aggregate Supply Aggregate Supply in the Short Run AS - relationship between the economy s price level and Assuming: Technology is fixed. Labor & AS:
More informationTom Weisskopf talk on U.S. AUSTERITY POLICIES (Ann Arbor, MI, 4/23/2013)
Tom Weisskopf talk on U.S. AUSTERITY POLICIES (Ann Arbor, MI, 4/23/2013) 0. Introduction: an onslaught of fiscal and debt struggles over the past 3 years 2010: The National Commission on Fiscal Responsibility
More informationThe coming financial crisis: Policy corrections needed
ABSTRACT The coming financial crisis: Policy corrections needed Warren Matthews University of Phoenix The Congressional Budget Office has released its outlook for federal spending and tax revenue over
More informationAP Microeconomics Chapter 16 Outline
I. Learning objectives In this chapter students should learn: A. The main categories of government spending and the main sources of government revenue. B. The different philosophies regarding the distribution
More informationFiscal Challenges for State and Federal Governments
Fiscal Challenges for State and Federal Governments Robert C. Pozen Senior Lecturer, Harvard Business School Senior Fellow, Brookings Institution Agenda Fiscal Crisis in State and Local Governments Outlook
More informationTHE CONGRESS, THE PRESIDENT AND THE BUDGET: THE POLITICS OF TAXING AND SPENDING CHAPTER 14, Government in America
THE CONGRESS, THE PRESIDENT AND THE BUDGET: THE POLITICS OF TAXING AND SPENDING CHAPTER 14, Government in America APUSGovPol Page 1 of 9 I. INTRODUCTION A. The president and Congress have been caught in
More informationUnderstanding and Beating. Joan Entmacher National Women s Law Center June 7, 2011
Understanding and Beating Joan Entmacher National Women s Law Center June 7, 2011 Budget perplexed? Debt limit? Global spending cap? Balanced budget amendment? Mandatory spending? Discretionary spending?
More informationThe National Debt Tops $19 Trillion - 106% Of GDP
The National Debt Tops $19 Trillion - 106% Of GDP March 10, 2016 by Gary Halbert of Halbert Wealth Management IN THIS ISSUE: 1. Another Strong Jobs Report, But Not All Good News 2. US National Debt Topped
More informationStagflation (1960s-1970s, Lesson 8)
Stagflation (1960s-1970s, Lesson 8) Standards: 1. 8.1.12C Evaluate historical interpretation of events. 2. 6.3.12B Assess the government's role in regulating and stabilizing the state and national economy.
More informationFederal Income Taxes: Who Pays and How Much. By Peter Ferrara August 14, 2008
Federal Income Taxes: Who Pays and How Much By Peter Ferrara August 14, 2008 The Internal Revenue Service recently released official data on the payment of income taxes by different income groups, compiled
More informationOctober 31, Policy Priorities, October 28, 2011,
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org www.cbpp.org October 31, 2011 REPUBLICAN PLAN CONTAINS MINUSCULE REVENUE INCREASE ALONGSIDE DEEP
More informationCONGRESS HAS CUT DISCRETIONARY FUNDING BY $1.5 TRILLION OVER TEN YEARS First Stage of Deficit Reduction Is In Law
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org www.cbpp.org Revised November 8, 2012 CONGRESS HAS CUT DISCRETIONARY FUNDING BY $1.5 TRILLION OVER
More informationDEFICITS AND DEBT Macroeconomics in Context (Goodwin, et al.)
Chapter 16 DEFICITS AND DEBT Macroeconomics in Context (Goodwin, et al.) Chapter Overview This chapter expands on the material from Chapter 10, from a less theoretical and more applied perspective. It
More informationPROPOSED SENATE TAX CUTS FOR SMALL BUSINESSES AND FARMERS NOT A TOP PRIORITY, GIVEN BUDGET OUTLOOK AND OTHER PRESSURES.
820 First Street, NE, Suite 510, Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1080 center@cbpp.org www.cbpp.org Revised September 19, 2002 PROPOSED SENATE TAX CUTS FOR SMALL BUSINESSES AND FARMERS
More informationDoes the Budget Surplus Justify Large-Scale Tax Cuts?: Updates and Extensions
Does the Budget Surplus Justify Large-Scale Tax Cuts?: Updates and Extensions Alan J. Auerbach William G. Gale Department of Economics The Brookings Institution University of California, Berkeley 1775
More informationDIALOGUE WITH THE FED: ACHIEVING LONG-RUN FISCAL SUSTAINABILITY
DIALOGUE WITH THE FED: ACHIEVING LONG-RUN FISCAL SUSTAINABILITY Recorded on April 8, 213 William R. Emmons Assistant Vice President and Economist Division of Banking Supervision and Regulation Federal
More informationThe President s Budget Request FY 2013
The President s Budget Request FY 2013 The Story of $3.67 Trillion: The Numbers, the Impact, and the Stories 5 Steps to the Federal Budget Every February the President submits to Congress a budget request
More informationWHAT YOU SHOULD KNOW ABOUT THE BUDGET OUTLOOK. William Gale Urban-Brookings Tax Policy Center February 8, 2013 ABSTRACT
WHAT YOU SHOULD KNOW ABOUT THE BUDGET OUTLOOK William Gale Urban-Brookings Tax Policy Center February 8, 2013 ABSTRACT The Congressional Budget Office released its latest Budget and Economic Outlook earlier
More information