ch7 - Economic and Budgetary Policy Click to edit Master...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style Economic and Budgetary Policy 11
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
22
Background image of page 2
33
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
44
Background image of page 4
Outline Goals of economic policy economic growth, stable prices, low unemployment, positive balance of payments, management of deficits and debt Instruments of economic policy fiscal policy, monetary policy, others Tax policy Budget process Budgetary actions and challenges Focused discussion: Addressing the Deficit 55
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Importance of Economic Economic policy is a central concern of government a byproduct of many other policies impacted by other government policies 66
Background image of page 6
Goals of Economic Policy 1. Economic growth 2. Full employment 3. Stable prices 4. Positive balance of payments from international trade 5. Management of deficits and debt 77
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Economic Growth Increase in the production of goods and services each year (GDP: gross domestic product) Benefits 1. Tax revenues increase 2. Aids (or programs) in the redistribution of resources A “zero-sum society” occurs when little growth no program gains or resources from one taken to give to another redistribution of wealth causes more conflict 88
Background image of page 8
Full Employment Jobs can substitute for social welfare programs Unemployment influences budgets Loss of gov’t revenue Increase in gov’t expenditures Unemployment not distributed evenly, e.g., by race and age African Americans (10% 2004) and young Americans (12% 2004) are disproportionately affected Change in job sectors (different jobs, more two- income households) 99
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Table 7-1 Labor Force Participation for Females, 1970-2007 Year Rate 1970 43.3% 1975 46.0% 1980 51.3% 1985 54.7% 1990 58.0% 1995 59.4% 2000 60.6% 2005 60.4% 2007 60.6% 1010
Background image of page 10
Low Levels of Inflation Inflation: Higher cost of goods and services
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/21/2011 for the course POLS 2302 taught by Professor Arwine during the Fall '08 term at Texas Tech.

Page1 / 28

ch7 - Economic and Budgetary Policy Click to edit Master...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online