SS 141 Lecture Notes - Lecture 6: Fiscal Policy, United States Treasury Security
Document Summary
Chapter 13 fiscal policy, deicits and debt. Fiscal policy: deliberate changes in: government spending. Republicans policy- buy your way into college: taxaion. Designed/purpose to: achieve full-employment, control inlaion, encourage economic growth. Expansionary policy: use during a recession: increase gov. spending, decrease taxes on poor but increase taxes in the rich, or combinaion of both, creates a deicit. Used during demand pull inlaion: decrease gov. spending, taxes increase (on everyone, combinaion of both, create a surplus. Surplus: you own more money than you owe. . 4 trillion in 2012: the accumulaion of years of federal deicits and surpluses. 10-30 years: u. s. savings bonds: have to wait unil end of the term. Social security: make american will be receiving beneits as they age, social security shorfalls. Possible opions to ix include: increasing reirement age, increasing the porion of earnings subject to the social security tax, disqualifying wealthy individuals, redirecing low-skilled immigrants to higher-skilled, higher paying work. 2: deined contribuion plans owned by individual.
