IT’S THE ECONOMY, STUPID Big Idea: The success or failure of an administration often hinges on the economy, despite the fact there are other controlling.

Slides:

Advertisements

Similar presentations

Emerging Macroeconomics Impact of changing policies.

Advertisements

Finance Issues in the News. Economic Indicators Inflation: Overall rise in prices Inflation: Overall rise in prices -The Consumer Price Index averages.

Does the U.S really have a debt crisis? wgbh/pages/frontlin e/tentrillion/view/

Unit 7 Macroeconomics: Taxes, Fiscal, and Monetary Policies Chapters 15.3 Economics Mr. Biggs.

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

Macroeconomics Review

Fiscal and Monetary policy

National Debt. What do we owe? April 2015 National Debt has reached $18.2 trillion Average of: $56,728 per person Average of: $154,161 per tax payer.

Do Now: What is a budget?.  Budget  President  Congress  Revenues (taxes)  Expenditures (spending/appropriations)  Categories of spending (Big 3)

ECONOMICS MR. BORDELON Fiscal and Monetary Policy Review.

FISCAL POLICY. Fiscal Policy We will not be using the section starting on pg. 220 on evaluating fiscal policy. Nor will I be using graphs.

JANUARY 9, 2014 Economic Policy. Fiscal Policy Spending and taxing decisions made by the government The annual federal budget is the basis of fiscal policy.

Government Spending, Pt. 2. What are the three top expenditures of the federal gov’t? Social Security (#2) Medicare (#3) National Defense (#1)

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

Economic Theory Laissez-Faire Theory that dominated American economic policy (or the lack thereof) in the early years Basic idea is that market will correct.

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

Domestic Policy Taxes Spending Social Security Medicare Medicaid Education Transportation Environment Crime.

Fiscal Policy 1.

The Role of Government in the United States Economy How does the United States government promote and regulate competition?

Section Outline 1 of 7 Government’s Role In Our Economy Section 3: Managing the Economy I.The Nation’s Economic Health II.The Federal Budget III.Federal.

Reaganomics Economic Policies of the 1980s. Issues at the Time Inflation Unemployment Stagflation Oil Crisis Iranian Revolution Ronald Reagan (1980)

American Government and Politics Today Chapter 16 Economic Policy.

The use of government spending and taxing to achieve economic growth, full employment and stable prices. FISCAL POLICY Chapter 15.

Problems With Fiscal Policy 1. When there is a recessionary gap what two options does Congress have to fix it? What’s wrong with combining both? Deficit.

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

Warm-up 5/10/12  Yesterday we talked about welfare programs to help people in need. How does the government pay for these programs?  What limits how.

National Debt v. Budget Deficit. Government Spending Vocab terms related to National Debt & Budget Deficit Revenue = money collected by the government.

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.

The National Debt Mr. Seely Economics. Balancing the Budget Balanced Budget- a budget in which total revenues are equal to total spending. Budget Surplus-

Economics Chapter 15 Fiscal Policy. What Is Fiscal Policy? Fiscal policy is the federal government’s use of taxing and spending to keep the economy stable.

Economics Chapter 15 Fiscal Policy. What Is Fiscal Policy? Fiscal policy is the federal government’s use of taxing and spending to keep the economy stable.

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

Chapter 19 Introduction to Macroeconomics © 2009 South-Western/ Cengage Learning.

Public Policy #3 Fiscal Policy. The Budget You must trim the budget by looking at 10 key areas of spending!

3.4 Demand and Supply Side Policies Shift in Aggregate Demand Demand Side Policies  Shifting the AD Curve (changes in any components) C, I, G,

Today’s Schedule – 11/22 Budget Deficits and National Debt Economic Cartoon HW – Read 16.2: Federal Reserve – Study for Ch. 14/15 Quiz.

1. What is the national debt? 2. What caused the national debt? 3. Where does the government get the money when it wants to spend more than it takes in?

Governments & Fiscal Policy Three levels of government: 1.Federal (USA) 2.State (NH) 3.Local (Merrimack) Fiscal Policy = plan for how governments gain.

 Fiscal Policy  Tool for economic growth  Federal Government makes fiscal policy decisions  Federal Budget  Fiscal Year  Takes 18 months to prepare.

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

Chapter 16: Financing Government Section 2. Copyright © Pearson Education, Inc.Slide 2 Chapter 16, Section 2 Objectives 1.Describe federal borrowing.

Stabilizing the National Economy

Economics Unit 4 Lesson 4 Understanding Government Budgets.

Intro Ch. 2 Economic Activity. Ch. 2-1 Measuring Economic Activity GDP- Gross Domestic Product- The total dollar value of all goods and services produced.

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

The New Economy Presentation by Dr. Kevin T. Brady, AIHE President.

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.

Copyright McGraw-Hill/Irwin, 2005 Deficits, Surpluses, and Debt The Public Debt Ownership of the Public Debt Substantive Issues The Crowding Out.

Political Economy O’Connor, Chapter 18 &

Chapter 15: Fiscal Policy Section 3. Copyright © Pearson Education, Inc.Slide 2 Chapter 15, Section 3 Objectives 1.Explain the importance of balancing.

 Problems, Policy, and The Fed.  Economic Problems: o Inflation o Loss of wages for workers o Lowered standard of living o Unemployment o Recession.

Macroeconomics, Part II Government Taxation and Spending, or Why Never to Give a Congressman Your Debit Card.

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

Module 30 LONG-RUN IMPLICATIONS OF FISCAL POLICY: DEFICITS AND THE DEBT.

Economics Unit 4: Macroeconomics Vocabulary Review.

Reaganomics = supply side/trickle down economics Cut taxes, especially for the wealthy and big business. Cut govt spending. No govt deficit. Keynesian.

Deficits, Surpluses, and the National Debt Please listen to the audio as you work through the slides.

Fiscal Policy Chapter 15. Understanding Fiscal Policy Chapter 15, Section 1.

Fiscal Policy Chapter 15 Section 3 Budget Deficits and the National Debt.

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

Chapter 11 Introduction. Chapter 12 What is Macroeconomics? Study of the aggregate behavior in an economy Study of the aggregate behavior in an economy.

The Subprime Mortgage Crisis. OBJECTIVES Define economic terms To identify Bush and Obama’s economic plans To analyze causes of current economic crisis.

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

Deficits and the Debt GOVT Module 16.

The Budget and Economic Polices

Economic Policies of the 1980s

Deficits and the Debt November 28, 2017.

What is it? How do we fix it?

Presentation transcript:

IT’S THE ECONOMY, STUPID Big Idea: The success or failure of an administration often hinges on the economy, despite the fact there are other controlling factors. Unit 1 Lesson 2

Objectives To compare Keynesian and Supply-Side Economic theories. To evaluate successes and failures of the Reagan, Clinton, and Bush economic plans. To identify additional factors influencing the success or failure of the overall economy. To analyze causes of current economic crisis and research government interventions.

Warm up: What was this video clip about? How does it relate to our current studies?

Key Economic Terms Deficit – difference between what govt takes in (taxes) and what it spends annually Difference must be borrowed…aka deficit spending Debt – accumulated debt govt owes from yrs of borrowing to pay off annual deficits Owed to people, co’s, state/local govts, foreign govts Debt Ceiling – cap on amt of debt fed govt can borrow Interest – rate paid on borrowed money

Key Economic Terms Surplus – take in more than spend Subtracts from total debt Inflation – rate of increase in the price of goods and services over a given period of time Dollar buys less 2-3% good Stagflation – inflation, high unemployment, and stagnate economy Recession – an economic downturn, slow business activity

Reagan(omics) Supply-Side Economics Tax cuts to rich … “Trickle-down” $ invested in business = produce more = more jobs = more income = more spending = more taxes (revenue) Deregulation-energy, transportation, banking, cut size and# regulatory agencies New Federalism Social funding cut 10%...left to States Increased Defense Spending

Reagan(omics) The Good Inflation rate down Stocks soar Employment up Streamline tax code The Bad Deficit up ($3 trillion) Stock scandals Crash ’87 S & L Bailout Unequal distribution $ Farm Crisis Manufacturing Losses Recession ‘90s  Discovery Education:  881B-33193F51B6B B-33193F51B6B4

Bush and “No New Taxes” 1990s Recession & Rising Nat’l Deficit = NEW TAXES = No re-election! The Bad International Trade Deficit Unemployment Up, Poverty Rates Up, Welfare Programs Cut The Good? NAFTA

Clinton’s “Fiscal Discipline” Tax increases (on wealthy) & spending cuts to reduce deficit Dot.com boom = ↑ tax revenue (salary & capital gains) Balanced Budget Left office with $127 b budget surplus Pay down debt…not erased On track to pay off debt b/t ?

Closure How does knowing all of this information impact you? Why is it important to know?