POLS 1101 Lecture Notes - Lecture 13: Monetary Policy, Government Spending, Federal Reserve System
Document Summary
Government gets you to do something by offering a reward . Incentives: subsidy grants of cash to promote aims (encourage behavior, constituency. Government contracting uses budget as a priority (encourage particular behavior in these contracts) Regulatory policies (tends to involve sanctions: provides boundaries, penalties. Reducing the consumption of something by raising the price: expropriation. Redistributive policies: taking from one group and transferring to another (most contested in government) Government spending and taxing and what your country is spending the money on. The u. s. is currently in a spending deficit (we are spending more money than we have which is increasing taxes and putting our country in debt) Big drivers of the debt defense, interest on the debt. Our tax system favors certain people on taxation. We spend most of our money on the military, and contracting (education receives very little money)
