STUDY - Decrease taxes(politically acceptable then we...

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Decrease taxes (politically acceptable then we increase spending because we need things, hiring people investing in the economy = DEBT Increase taxes and spending = socialism -strong economy adds on the the gov tx revenues. - economic growth may make people more likely to accept policies that redirect some of their money to others if they increase in their own wealth. Allowing more people to receive benefits from gov. programs. If economy grows to fast it will result in inflation, Higher growth may lead to a budget surplus and people spend more. Unemployment the fewer people pay ssn taxes less rev coming in for gov for programs. Gov then pays out more money for low income families (food stamps, medicaitd, welfare) Some may be more concerned with inflation that unemployment. Having the balance of trade. US would want to sell more goods to other nations that buying them US is at negative balance trade. -When economy sucks , and high unemployment: Federal should be increase
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This note was uploaded on 09/21/2011 for the course PA 490 taught by Professor Davies-macla during the Winter '08 term at Grand Valley State.

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STUDY - Decrease taxes(politically acceptable then we...

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