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

Slides:



Advertisements
Similar presentations
Chapter 16 Economic Policy Created by: Batty Stergos!
Advertisements

Pre-test review Chapter What was the total national debt at of 2008? 2. What is that debt today? 3. What are low-income people tend to be most.
16 Economic Policy. Copyright © Houghton Mifflin Company. All rights reserved Figure 16.4: Tax Burdens in Nineteen Democratic Nations Source: Statistical.
Chapter 14 Economic Policy Basic Economic Issues Fiscal Policy Monetary Policy Deficit Spending Budget Process.
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
Economic Policy Chapter 18. Roots of Economic Policy The early years of our nation were marked by a _____________ economic policy. Interstate Commerce.
Taxes, Fiscal, and Monetary Policies
Understanding how our elected officials work with one another and other agencies to formulate economic policy and the federal budget.
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.
Aim: ECONOMIC POLICY POLITICS OF ECONOMIC PROSPERITY Economy and elections “pocketbook issue” “It’s the economy stupid” Unemployment inflation.
Economic Policy Fiscal policy - Taxing, spending, and borrowing policies of the federal government. Monetary policy – directed by The Federal Reserve (The.
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.
Economic Policy. The politics of deficit spending The general landscape Deficit: government spending over and above the amount taken in by taxes National.
The Policy Process and Budgeting
Chapter 12 Government Decisions and Economic Success.
 Money supply  Velocity of money  Laissez faire  Keynesianism  Discount rate  “Supply side economics”  Inflation  Recession and Depression  The.
ECONOMIC POLICY MONEY MONEY MONEY MONEY!!!. GOVERNMENT ECONOMIC POLICY 1.MONETARY POLICY 1.CONTROLLED BY THE FEDERAL RESERVE 2.MAINTAIN STABILITY OF OUR.
FISCAL AND MONETARY POLICY How do policymakers use fiscal and monetary policy to stabilize the US economy?
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.
Policy Making— Economic Policy --The Government’s Role --Theories of Economic Policy --The Budget --National Debt 1.
PUBLIC POLICY NEED TO KNOW: Unit 5. POLICY-MAKING PROCESS Chapter 17.
Public Policy #3 Fiscal Policy. The Budget You must trim the budget by looking at 10 key areas of spending!
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.
Public Policy and The Budget Process. I. Economic Policy A.Monetary v. Fiscal Policy 1. The government uses monetary policy to influence the economy by.
Chapter 15 Fiscal Policy.
The Budget By Chaquille Evanson. Contents Economic Health Politics of Taxing and Spending The Machinery of Economic Policy Making The Budget.
Chapter 18 Economic Policy US Government AP. The Economy HHard to predict how policy will impact the economy over the long term NNatural business.
Economic Policy. Fiscal Policy Fiscal policy = taxing and spending Fiscal policy affects the economy by making changes in the government’s methods of.
Economics Chapter 17 Stabilizing the National Economy.
 Fiscal Policy  Tool for economic growth  Federal Government makes fiscal policy decisions  Federal Budget  Fiscal Year  Takes 18 months to prepare.
Chapter 15.  Setting Fiscal Policy: The Federal Budget  Fiscal year  Agencies write proposals (OMB)  Executive Branch creates a budget  Congress.
Fiscal Policy Use of government spending and revenue collection to influence the economy.
Stabilizing the National Economy
20 th Century Economic Theory Miss Varee AP Macroeconomics Spring 2008.
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.
CHAPTER 17 Stabilizing the National Economy. Section 2: The Fiscal Policy Approach to Stabilization  Fiscal Policy- Federal Government’s use of taxation.
FISCAL AND MONETARY POLICY MIX Principles of Macroeconomics Lecture 8c.
Fiscal Policy Chapter 15. Fiscal Policy Stabilization Policy: to prevent recession, depression, inflation, stagflation Fiscal policy Monetary policy Fisc:
 Problems, Policy, and The Fed.  Economic Problems: o Inflation o Loss of wages for workers o Lowered standard of living o Unemployment o Recession.
Economic Policy and The Budget Process. I. Economic Policy A.Monetary v. Fiscal Policy 1. The government uses monetary policy to influence the economy.
Jeopardy Terms Steady as you go Policies Who’s Who? Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final Jeopardy Schools of thought.
Chapter Eighteen Economic Policy Mr. Ognibene SHS.
Drill 10/30  How did the Chinese government restrict trade with foreign merchants  How did this policy illustrate their overall opinion of foreigners?
Economic Policy and the Budget. Economic Health  Deficits the last 35 years raise ongoing policy debates, as well as the surpluses on 1999 & 
Economic Policy: Chapter 18.  deficit  what the government takes in (taxes) and is less than what it spends (expenditures)  measured over a year 
5/7Warm Up What monetary policy tools can the Fed use to slow down rapid economic growth?
Fiscal Policy and the Federal Reserve. Early History The United States government largely adhered to free market practices throughout the 18 th and 19.
Mai, Ian, Emily, Maggie, Cassidy, Sunny. Action the government takes in the economic field.
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.
Economic Stabilization Policies
Fiscal Policy UNIT 6 Chapter 15.
Chapter 14: Fiscal and Monetary Policy
Aim: ECONOMIC POLICY POLITICS OF ECONOMIC PROSPERITY
The Federal Budget.
Chapter 18 Economic Policy
SSEMA3-Explain how the government uses fiscal policy
Chapters
5.4 Describe the concept of an iron triangle relationship.
Chapter 18 Economic Policy
Chapter 18: Economic Policy
Economic Policy Public Policy.
Problems, Policy, and The Fed
Chapter Eighteen Economic Policy.
Presentation transcript:

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

FISCAL VS. MONETARY POLICY FISCAL POLICY Tax and spend to affect economy Deficit vs. Surplus MONETARY POLICY Use interest rates to control economy Lower rates encourage borrowing and spending

KEYNESIANISM (CANE-ZEE-AN-ISM) John Maynard Keynes

The market will not automatically operate at full-employment, low inflation Emphasis on savings vs. spendings The key is to create the right demand If demand is too low, government should pump $ into economy (public works, etc) If demand is too great, government should taken $ out of circulation by raising taxes and/ or spending less. Government activism Liberal FISCAL POLICY

MONETARISM Milton Friedman ( )

Inflation occurs when there is too much money, and too few goods Value of dollar decreases Gov’t should have a steady, predictable increase in the money supply equal to growth Generally, gov’t should leave matters alone (Free Market) Conservative MONETARY POLICY

Price & Wage Controls John Kenneth Galbraith ( )

Government should regulate the max prices charged and wages paid in larger industries to control inflation Socialism

INDUSTRIAL POLICY Robert Reich (1946- )

Government should invest to keep key industries healthy or plan for replacements Socialism

SUPPLY-SIDE THEORY Arthur Laffer (1940- ) Paul Craig Roberts (1939- )

Less government interference Cut taxes a lot to encourage people to work, save, and invest Increased investment will lead to more jobs Conservative FISCAL POLICY

REAGANOMICS

Reduced government spending on social programs Increased military spending Sharp income tax cuts Increased social security taxes Result: HUGE budget deficit that lowered unemployment and helped the rich

WHO HELPS CRAFT ECONOMIC POLICY? CEA (Council of Economic Advisors) OMB (Office of Management and Budget) Secretary of Treasury The Federal Reserve Board (the Fed) -7 members appointed by Pres, confirmed by Senate for 14 year terms -Regulates the supply and price (interest rates) of money -Congress must approve all expenditures -Can control Fed by threatening to reduce its power BUDGET -Pres submits to Congress in Feb -Analyzed by the CBO (Congressional Budget office) -Budget Resolutions come out of committee

THE BUDGET President submits budget to Congress in February Budget is analyzed by the CBO (Congressional Budget Office) Budget resolutions come out of committees

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.