Budgeting and Tax Policy

Budgeting and Tax Policy

By: Lana

Poll

Do you think America should have a balanced budget?

• Of course,It helps devote funds to key areas that demand the most attention.

• No,It will lead to job loss

• I thinks not, it will risk tipping a weak economy into recession 

• Yess,the federal government spends too much every year

​Objectives✨

• ​Discuss economic theories that shape U.S. economic policy

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• ​Analyze the taxing and spending decisions made by Congress and the President

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Different Approaches

​In the 1930's, advocates argued what would be the right approach to interact with the economy. For a long time it had been the laissez-faire economics (aka. the hands off approach) . This was until the Great depression challenged this approach .President Franklin Roosevelt came in office in 1933 and sought to implement a new approach to economics known as

Keynesian​ism.

Open Ended

List 2 pros and 2 cons on the Keynesian effect.

​A new Approach

​After economists argue that the Keynesian effect was overstimulating the economy the government decided to bring in a new approach which was called Supply-Side Economics(an economic policy that assumes economic growth is largely a function of a country’s productive capacity).This approach was argued that it increasing regulations and higher taxes reduce the incentive to invest money into the economy to the point where little growth will occur.

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​ Spending

​Taxing is affected by Our spending. The spending mostly come from mandatory spending (entitlment programs) which is made of health care, Social Security, Unemployment, and Snap. People in America also argue we should have a balanced budget but doing that we would have to cut spending. Balancing the budget would mean we would have to cut about 1/3 of spending on programs like education, agriculture, police enforcement , and etc..

Taxing​

To have a balanced budget they would have to increase revenue .Taxing is to apply tax on residents for the benefits government provide. The more taxes the government collects to cover the cost the less we have to spend and invest with. The Keynesian and supply siders have different approaches on taking. Keynesians suggests to raise the tax by how much you make. Supply siders feel to support regressive tax saying that the more you make the more you should be taxed less.

Poll

Are you for Keynesian effect or Supply-Sider economics

• Keynesian

• Supply-Sider

​Debate

​The government wants a balanced budget system. Since they want a balanced budget they have to cut spending and want to take from a program. Each of you will be a program and you will debate on why your program shouldn't have money cut from your program

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1. ​Medicare/Medicaid

2. ​Education

3. ​SNAP

4. police program​

Open Ended

What did you learn today? Do you have any questons?

​Objectives Explained

​Discuss economic theories that shape U.S. economic policy

​​Analyze the taxing and spending decisions made by Congress and the President

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Multiple Choice

What type of tax policy is preferred by Keynesians?

• progressive taxes systems

• regressive  tax system

• recession

• none of the above

Multiple Choice

what approach was used before the great depression

• laissez faire

• Keynesian

• Supply Sider economics

Multiple Select

Multiplier effect is

• If I spend money then someone else get money and then they spend and so on

• government spending causes a larger change in an output such as gross domestic product.

• idk

• none of the above