During recent political campaigns, taxes and budget policy were key issues. White House budget packages are often designed to stimulate economic growth. From the library or from www.whitehouse.gov, obtain a current summary of government spending and tax legislation signed by the president.
â?¢Write a brief description of the fiscal policy of the United States.
â?¢Would you describe it as "expansionary" or "contractionary"?
â?¢How can American consumers influence decision makers on fiscal policies?
â?¢Explain and discuss if and how this has changed over the past 5 years.
â?¢Post your response on the Discussion Board. Comment on other postings.
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OTA 105878/Xenia Jones
Write a brief description of the fiscal policy of the United States.
Would you describe it as "expansionary" or "contractionary"?
American Fiscal Policy: An Expansionary System
In economics, the fiscal policy of a country is the manner by which the government controls the monetary resources of a country - particularly the manner of expenditure and revenue collection to influence the state of its economy. American fiscal policy in my opinion is primarily expansionary. The way the government spends and the way it collects and sets taxation rates impact aggregate demand and economic activity, resource allocation and distribution of income. Now, the Federal Open Market Committee of the US government control money supply but in the US economy, the standard is to make sure that there is a good monetary supply available for trade in the economy; to make this happen they purchase securities in the open market, lower the Federal discount rate and lower the reserve requirement. This allows banks to free up money ...
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