Corporate Governance mechanisms and strategies Owners (who act as investors) and managers who have fiduciary responsibility Mechanisms: The stock market Annual meetings Board of directors Strategies (Hirschman) Exit Voice

Macroeconomic policy (chapter 10) Taxation Public spending Money supply

Taxation Issues to consider How visible are they? How socially acceptable are they? Progressive versus flat Who pays? (how many people? Is it connected to usage?) Incentives on the economy and individuals? How burdensome it is to administer?

Taxes Income tax Corporate income Capital gains Estate tax Social insurance payments General consumption taxes Property taxes Non-tax revenue

Public Spending Privatization and contracting out of services Welfare for business Tax expenditures Miscellaneous subsidies

Supply of money Inflation Exchange rate

Total federal revenue by source

Federal revenue distribution by source