TBS Simulation

The Economy is slowing down Businesses are not growing People are not buying goods or services What should THE Gov’t do? Raise Taxes Lower Taxes

The Gov’t raised taxes Before, Citizens paid 35% of their income in taxes Now, it’s 50% Result: People have less money They spend less Firms make less and fire workers The Economy has crashed. No Money. No Jobs. Another Great Depression. start over

The Gov’t lowered taxes Before, Citizens paid 35% of their income in taxes Now, it’s 25% Result: Citiznes have more money, so they spend Firms produce more, and hire more workers The Economy grows next round

The Economy is slowing down Businesses are not growing People are not buying goods or services People are out of work What should THE Gov’t do? Raise Gov’t Spending Lower Gov’t Spending

The Gov’t raised spending The money went to hiring teachers, police, military, firefighters, construction workers, etc. Result: The workers spend their money Firms produce more, and hire more workers The economy grows next round

The Gov’t cut spending Teachers, police, military, firefighters, and construction workers are out of work Result: Less spending occurs Firms produce less, fire more workers Economy crashes start over

What should THE Gov’t do? Borrow more Borrow less The Economy is doing okay The gov’t is considering building better roads in the country To pay for the roads, the US will need to borrow a lot money

The Gov’t borrows more The gov’t has money to pay for it’s road, but there is less money for citizens to borrow Result: Citizens borrow less, so the spend less Firms make less, and fire workers The economy crashes. start over

The Gov’t borrow less The gov’t decides to wait to build the road There is money available for citizens to borrow Result: People borrow more, they spend more Firms produce more, hire workers the economy grows. next round

YOU WIN