fiscal policy. clear target students will be able to explain how fiscal policy is used to influence...
TRANSCRIPT
Fiscal Policy
Clear Target
Students will be able to explain how fiscal policy is used to influence our economy.
Fiscal Policy
The federal government’s use of taxation and spending policies to affect overall business activity.
Expansion vs. Contraction
• Expansionary policies use taxing and spending to make money more easily flow through the economy.
• Contractionary policies use taxing and spending to slow the flow of money through the economy.
Social Programs
welfare subsidies designed to aid the needs of the U.S. population.Head StartSocial Security DisabilitySocial Security Retirement and Survivors BenefitsSupplemental Security Income (SSI)MedicaidMedicareWelfare (Temporary Assistance for Needy Families, or T.A.N.F.)G.I. BillVeterans' benefitsPell GrantsUnemployment InsuranceFood StampsGovernment Subsidized HousingHome Mortgage Interest DeductionHope and Lifetime Learning Tax CreditsChild and Dependent Care Tax CreditEarned-income tax creditEmployer subsidized health insuranceEmployer subsidized retirement benefitsFederal student loans
Social Security
• Provides subsidies to help cover living costs for people of retirement age.
• Started in response to the large number of elderly affected by the Great Depression.
Medicare
• Provides medical insurance for people of retirement age.
Medicaid
• Provides medical insurance for people under retirement age based on financial needs.
Public Goods
Goods or services that can be used by many individuals at the same time without reducing the benefit each person receives.
Externalities
Economic side effects that affect an uninvolved third party.
Externalities
Positive• GPS• Microwave• Flu shots• Smoking
Negative• Water pollution• Air pollution• Power reduction• Smoking
National Deficit
When the government’s planned spending is greater than its ability to collect revenue.
National Debt
• The federal government's total outstanding debt.
http://www.usdebtclock.org/