16.1 The Goals of Economic Policy
The Goals of Economic Policy: Stable Markets, Economic Pr...
There are four major goals of economic policy: stable markets, economic prosperity, business development and protecting employment.
Fours Schools of Economic Thought
Mainstream modern economics can be broken down into four schools of economic thought: classical, Marxian, Keynesian, and the Chicago School.
16.2 History of Economic Policy
The Nineteenth Century
Associated with industrialism and capitalism, the 19th century looms large in the history of economic policy and economic thought.
The Progressive Era
The Progressive Era was one of general prosperity after the Panic of 1893; a severe depression that ended in 1897.
The Great Depression and the New Deal
The New Deal was a series of economic programs enacted in the United States between 1933 and 1936 in response to the Great Depression.
Social policy refers to guidelines, principles, legislation and activities that affect the living conditions conducive to human welfare.
Deregulation is the act or process of removing or reducing state regulations.
16.3 Economic Policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money.
Fiscal policy is the use of government revenue collection or taxation, and expenditure (spending) to influence the economy.
Income Security Policy
Fiscal policy is considered to be any change the government makes to the national budget in order to influence a nation’s economy.
Regulation and Antitrust Policy
Antitrust laws are a form of marketplace regulation intended to prohibit monopolization and unfair business practices.
Subsidies and Contracting
A subsidy is assistance paid to business, economic sectors, or producers; a contract is an agreement between two or more parties.
The Public Debt
Government debt, also known as public debt, or national debt, is the debt owed by a central government.
The Federal Tax System
The United States is a federal republic with autonomous state and local governments with taxes imposed at each level.
Federal Income Tax Rates
Federal income tax is levied on the income of individuals or businesses, which is the total income minus allowable deductions.
Tax Loopholes and Lowered Taxes
Tax evasion is the term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means.
16.5 Politics and Economic Policy
Fiscal Policy and Policy Making
Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.
Deficit Spending, the Public Debt, and Policy Making
Deficit spending and public debt are controversial issues within economic policy debates.
Monetary Policy and Policy Making
Monetary policy is the process by which a country controls the supply of money in order to promote economic growth and stability.
Income Security Policy and Policy Making
Income security policy is designed to provide a population with income at times when they are unable to care for themselves.
The Changing Federal Role in the Economy
The role of the federal government in the economy has been a central debate among economists and political scientists for two centuries.
Politics and the Great Recession of 2008
Global political instability is rising fast due to the global financial crisis and is creating new challenges that need to be managed.
Business and Labor in the Economy
The relationship between business and labor has been at the center of economic and political theory for the last two centuries.