From 11f3a2c7a3b6a24e61c19ad21b2381abeb4a3473 Mon Sep 17 00:00:00 2001 From: Lukas Werner Date: Tue, 5 Apr 2022 12:07:57 -0700 Subject: [PATCH] Econ policy --- apgov/Ideology_and_Economic_Policy.md | 70 +++++++++++++++++++++++++++ 1 file changed, 70 insertions(+) create mode 100644 apgov/Ideology_and_Economic_Policy.md diff --git a/apgov/Ideology_and_Economic_Policy.md b/apgov/Ideology_and_Economic_Policy.md new file mode 100644 index 0000000..aae23d5 --- /dev/null +++ b/apgov/Ideology_and_Economic_Policy.md @@ -0,0 +1,70 @@ +# Ideology & Economic Policy + +## Political Ideology and the Marketplace +using government policy to further economic development by using taxes, spending programs etc. +## Keynessian Economics +Deal with economic policy related to gov spending and taxation. +Beleif that economy wont operate on 100% cap without government involvement +Gov should step in and do demand if it is falling too low +## Fiscal Policy +economic policy related to gov spending ant taxes +## Multiplier effect +mechanism where increasing spending causes economic growth greater than the amount of spending +## Supply-Side Economics +(fiscal conservatives) belif that the gov should leave as much of money supply to the people and let laws of economics deal with the market. laissez-faire market theory +## Taxing +article 1 of constitution gives congress taxation powers +## Sixteenth Amendment +allowed congress to tax people's incomes +## Internal Revenue Service (IRS) +goverment agency that manegess collection process of taxes +## Progressive Tax +as one gets better so does one's taxes +## Flat Tax +all citizens should be taxed the same amount +## Spending +government spends its budget on different things depending on the party. Both parties need to vote on the acutal budget. +## Federal Suprlus and Deficit Chart +often we have a lot less surplus government spending. especially since the 2008 financial crisis. +## Monetary Policy +how the goverment manages supply and demend of its currency and the value of the dollar. +## Inflation +too much dollars in circulation and then ricing prices and devaluation of the dollar occurs +## Federal Reserve Board +gov agency that manages the monetary policy by buying and selling securities and bonds, as well as the amount of money reqiired at reserves as well as setting interest rates. +## Discount Rate +the interest rate at which the government loans actual dollars to comerical banks. tends to set the interest rates for consumers as well +## Reserve Requirement +every bank needs to keep a certain amount of money in their reserves in order to prevent a great depression. effects how much the bank can loan out. +## Bonds +government IOSs - promise that the US will pay back later with interest. + +-- note to self: i need to buy a bond +## Federal Reserve and the Economy +??? + +## Think as a Political Scientist + +Study the graphics and answer the questions that follow + +1. What inferences can be made from the data? + +that as the economy has declined the discount rate has lowered in order to help boost the economy +2. What additional information about the government's economic activity over this period might make this graphic more valuable in understanding + +showing different historical events relating to the us history, vietnam war, cold war, economic bubbles etc + +## Differing Views on Monetary Policy Globalization +people view money very differently as it is a political discussion. + +some thing easy-money is good while others look back at history and state that it is a contributing factor to bad events +## Trade Balance +nation that exports more than it imports +## NAFTA (North American Free Trade Agreement) +1994 agreement between US, Canada, Mexico. Removed import taxes between in order to make a more competative continent compared to the EU and Europe +## Essential Question: What are the differing political ideologies in the government's role in regulating the marketplace, and what impact do those ideologies have? + +1. Conservative Ideology (Regulating the Marketplace, Fiscal Poilicy, Monetary Policy, Trade) +Do not like to regulate the market, government should make the economy handle eveythign itself and that the banks should manage money so make interest rates low +2. Liberal Ideology (Regulating the Marketplace, Fiscal Poilicy, Monetary Policy, Trade) +regulate and incentivise programs in order to further social progress, taxes should be different for people so that money is fairly used