Slide 2 of 49
Notes:
Fiscal policy is the deliberate use of taxes, transfer payments, and government payments for goods and services to influence the level of production (gross domestic product), income, prices and employment in the economy. Fiscal policy is often referred to as government tax and spend policy. Remember that the GDP is the $ value of all goods and services produced within the boundaries of the U.S., and is used to measure economic growth.
How high should taxes be? How much should government spend? What should government spend our tax dollars on? Are middle class taxpayers taxed too much or too little? Should the wealthy be taxed more or less? These questions are discussed regularly, and I’m probably not going to provide you with any easy answers either. We are going to take a look at the Federal Budget and explore where tax dollars are being spent. I am going to give you the opportunity to try and balance the budget. I hear folks all the time saying they ought to do this, or they ought to do that as if balancing the budget is a simple task. We will see.
