PP 1001 Lecture Notes - Lecture 2: Income Tax, Money Supply, Economic Policy Of Barack Obama
Document Summary
Ideological perspectives: two approaches both with the same goals: keynesian economics. Government takes a favorable approach in the economy. Using government to solve problems adopted by democrats and liberals first president to adopt this approach was franklin d. roosevelt ex. social security: supply-side economics. Not government, decisions should be left to company and people cut taxes, reduce taxes, give money back to people to allow them to decide how to spend it. Economic policy in historical perspective: pre-fdr, new deal/great society, reaganomics, bush, obamanomics. Types of economic policy: fiscal policy = federal budgeting (revenue and spending) Government spends 4 million and makes 3 million (debt) Making the federal budget revenue- where does money come from, tax rates expenditure- where should the federal government spend the money. President makes the federal budget and gives it to congress and gets voted on: monetary policy = the fed (the money supply and qe)
