Aim: ECONOMIC POLICY POLITICS OF ECONOMIC PROSPERITY Economy and elections “pocketbook issue” “It’s the economy stupid” Unemployment inflation.

Slides:

Advertisements

Similar presentations

Chapter 16 Economic Policy Created by: Batty Stergos!

Advertisements

Understanding how our elected officials work with one another and other agencies to formulate economic policy and the federal budget.

Economic Policy Wilson 18A. Objective Questions Who Governs? To What Ends?  Who in the federal government can make our economy strong?  Why does the.

Economic Policymaking

Fiscal and Monetary Policies The Government’s Role In the Economy.

Fiscal Policy. *The government has three roles in the economy: TAXATION, SPENDING, & REGULATION.

Taxes, Fiscal, and Monetary Policies

Fiscal Policy © 2010, TESCCC.

Fiscal Policy Chapter 15. Setting Fiscal Policy: The Federal Budget  $7.7 Billion a day spent by government  Fiscal Policy is the use of government.

Fiscal Policy Government Spending AndTaxes. Fiscal Policy Government spending Government spending – Increase: stimulates the economy – Decrease: slow.

Chapter 16 Economic Policy. Copyright © Houghton Mifflin Company. All rights reserved.18 | 2 Politics and Economics Deficit: when expenditures exceed.

Sherean Ali, Claire Edelson, Christian Lyon, & Lisa Reimann.

Economic Policy Fiscal policy - Taxing, spending, and borrowing policies of the federal government. Monetary policy – directed by The Federal Reserve (The.

Using Fiscal Policy.   Fiscal Policy is the federal government’s use of taxes and government spending to affect the economy.  There are three primary.

Fiscal Policy 1.

Government & Economics Government & Economics Review your monetary policy notes!! Draw and label this Business Cycle in your note book!! (Expansion, Contraction,

THE BIG PICTURE. WHAT CAN GOVERNMENT DO TO PROMOTE ECONOMIC GROWTH? Is economic growth really the government’s job? What should the government.

Economic Policy. The politics of deficit spending The general landscape Deficit: government spending over and above the amount taken in by taxes National.

Economic Policy. The politics of deficit spending The general landscape Deficit: government spending over and above the amount taken in by taxes National.

Chapter 12 Government Decisions and Economic Success.

1 Fiscal Policy SECTION 1: Defining Fiscal Policy SECTION 2: Fiscal Policy Strategies SECTION 3: Fiscal Policy and the Federal Budget CHAPTER 15.

Economic Policy Theories to Practice Chapter 18 Theories to Practice Chapter 18.

ECONOMIC POLICY MONEY MONEY MONEY MONEY!!!. GOVERNMENT ECONOMIC POLICY 1.MONETARY POLICY 1.CONTROLLED BY THE FEDERAL RESERVE 2.MAINTAIN STABILITY OF OUR.

Chapters 15 & 16. T WO TOOLS: F iscal & Monetary Policy W hat’s the difference? F iscal Policy T he Budget – taxing and spending T he use of government.

1 Chapter Eighteen Economic Policy. 2 Politics and Economics Deficit: when expenditures exceed revenues Deficit: when expenditures exceed revenues National.

Economic Policy. The politics of deficit spending The general landscape Deficit: government spending over and above the amount taken in by taxes National.

ECONOMIC POLICY (Or… “How Many Harvard Economists Does It Take to Craft an Economy Policy?”

Policy Making— Economic Policy --The Government’s Role --Theories of Economic Policy --The Budget --National Debt 1.

Chapter 12 Government Decisions and Economic Success.

Abel & Bernanke Ch. 8, Key Macroeconomic Theories of the Business Cycle.

Ch 16, 2-4. Section 2: Aggregate supply the total value of goods and services that all firms would produce in a specific period of time.

Achieving Economic Stability Chapter 16. Goals & Objectives 1.Eco nomic & Social Costs of Instability. 2.Aggregate Supply & Demand. 3.Macroeconomic equilibrium.

Fiscal Policy and the Multiplier. Unemployment Economic Growth.

The Budget By Chaquille Evanson. Contents Economic Health Politics of Taxing and Spending The Machinery of Economic Policy Making The Budget.

Economics Chapter 17 Stabilizing the National Economy.

MACROECONOMIC OBJECTIVES OF THE GOVERNMENT. Learning Objectives Identify the four major macroeconomic objectives; Explain how the government can control.

Fiscal Policy Use of government spending and revenue collection to influence the economy.

Stabilizing the National Economy

Fiscal Policy. Fiscal Policy - the use of government spending (expenditures) and revenue collection (taxes) to influence the economy. 1. Congress’s Role.

Economic Policy Mr. Stroman AP Government. Economic Theory “It’s the economy, stupid!” 3 main types of economies: Capitalist economy – Means of production.

Fiscal Policy. Purpose The use of government spending and revenue collection (taxes) to influence the economy.

Fiscal Policy How the government collects and spends money to meet broad economic goals.

CHAPTER 17 Stabilizing the National Economy. Section 2: The Fiscal Policy Approach to Stabilization  Fiscal Policy- Federal Government’s use of taxation.

1 © ©1999 South-Western College Publishing PowerPoint Slides prepared by Ken Long Principles of Economics 2nd edition by Fred M Gottheil.

The Federal Reserve Fiscal Policy - Using taxes and spending to help the economy grow. Monetary Policy - Policy that involves changing the rate.

Chapter Eighteen Economic Policy Mr. Ognibene SHS.

1 Fiscal Policy © 2009, TESCCC. 2 Fiscal Policy defined The government’s (Congress and the President) use of taxing and spending to promote economic growth.

Fiscal Policy Fiscal Policy - Government effort to control the economy and maintain stable prices, full employment, and economic growth. Fiscal Policy.

Economic Policy and the Budget. Economic Health  Deficits the last 35 years raise ongoing policy debates, as well as the surpluses on 1999 & 

Financing the Government. Taxes and Revenue Progressive tax – the higher the income, the higher the rate Payroll taxes – taxes matched by employers Regressive.

Fiscal Policy Chapter 15. What is Fiscal Policy? The use of government spending and revenue collection to influence the economy –This can either expand.

Fiscal Policy and the Federal Reserve. Early History The United States government largely adhered to free market practices throughout the 18 th and 19.

Chapter 18: Economic Policy. Copyright © Houghton Mifflin Company. All rights reserved.18 | 2 Theories of Economic Policy Economic theories explain how.

Fiscal & Monetary Policy. Economic Policy Objectives of the US Government:

UNDERSTANDING TAXES AND GOVERNMENT SPENDING GOVERNMENT AND THE ECONOMY.

Chapter Eighteen Economic Policy. Copyright © Houghton Mifflin Company. All rights reserved.18 | 2 Politics and Economics Deficit: –when expenditures.

Stabilizing the Economy

Economic Stabilization Policies

Fiscal Policy SSEMA3 a-b.

Macroeconomics: Policy Tools

Fiscal and Monetary Policy

Sponge Quiz #1: In Year 1, the cost of a market basket of goods was $720. In Year 2, the cost of the same basket was $780. What was the consumer price.

Aim: ECONOMIC POLICY POLITICS OF ECONOMIC PROSPERITY

Courtney Bristow, Justin Dueker, Allie Romig, Andrey Kibukevich

SSEMA3-Explain how the government uses fiscal policy

Chapter Eighteen Economic Policy.

Presentation transcript:

Aim: ECONOMIC POLICY POLITICS OF ECONOMIC PROSPERITY Economy and elections “pocketbook issue” “It’s the economy stupid” Unemployment inflation

Aim: ECONOMIC POLICY POLITICS OF TAXING AND SPENDING Fiscal policy = taxation (revenues) and spending (expenditures) What Americans want is inconsistent? What Congress/President give – tends to “feed” public inconsistency. Produces budget deficits

Aim: ECONOMIC THEORIES – to promote national economic goals BUT FIRST, WHAT ARE THE BIG THREE ECONOMIC GOALS? economic growth full employment price stability

Aim: ECONOMIC THEORIES – to promote national economic goals: MONETARY THEORY (MONETARISM) “too much money chasing too few goods” Stable – growth in money supply = to growth of economy’s productivity Curb inflation Federal Reserve Tools – reserve requirements, OMOs, discount rates

Aim: ECONOMIC THEORIES KEYNESIAN ECONOMICS John Maynard Keynes Demand-side economics Deficit-spend during recession to stimulate the economy Increase government spending (Public works) Leads to increase demand Increase productivity Increase employment When recession is over, balance the budget

Aim: ECONOMIC THEORIES PLANNING Price and wage controls During inflationary times Industrial policy (gov’t direct industry – development/investment)

Aim: ECONOMIC THEORIES SUPPLY-SIDE TAX CUTS Don’t need more planning but less government involvement Government involvement = government interference with market mechanisms Instead CUT TAXES Leads to more money to SAVE, SPEND, AND INVEST “Trickledown” “Reaganomics” Cut taxes, domestic spending Increase military spending

Aim: ECONOMIC THEORY IDEOLOGY AND THEORY Democrats (Liberals) - Keynesian, Planning Republicans (Conservatives) -supply-side, monetarists

Aim: ECONOMIC POLICY REVIEW BUDGETARY PROCESS President OMB Congress Key Committees CBO Reporting out of each house POLITICS OF THE PROCESS!!!

TAXES: GRESSIVITY “Gressivity” – tax rate relative to income Progressive – tax rate increases as income increases Proportionate – tax rate is the same at every income level Regressive – tax rate increases as income decreases EXAMPLES OF EACH??