parent
365a480a9c
commit
11f3a2c7a3
@ -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 |
Loading…
Reference in new issue