POLS30040 Lecture Notes - Lecture 12: Fiscal Policy, Discount Window, Baby Boomers
15 Nov 2016
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No economic distinction between tax credits and spending. Bringing in more money than you"re spending. Raised revenues are less than spent funds. Low unemployment -- less dependence on government assistance. High unemployment -- decreased revenues -- constrains budget of other programs. Low unemployment can lead to a low labor supply, which means businesses cannot grow at a rate they would like to. Want to keep inflation at around 3% annually. There is a relationship between inflation and wage growth. Minimum wage gives you less buying power. Difference between what we export and import. Oil imports are a large portion of this. We have to show that we"re responsible and creditworthy. High interest means we cannot spend that money elsewhere. Supply of money directly impacts economic well being. Protect the public from risky business practices. Examples: environmental, minimum wage, and safety regulations. Not everyone agrees on how to do this (it"s political)
