Fiscal Policy

Wednesday - monetary policy

• Different kinds of currency

• The federal reserve is in charge of monetary policy

• Bank interest rate

• can change reserve requirement

  • The amount banks are able to reserve

  • more money in reserve → less money in circulation

Today:

• congress is in charge of Taxes

• President can’t raise taxes but he can influence congress

  • Congress in charge of fiscal policy

  • can’t have no taxes because the government needs money

    • need money for the military

    • social security

      • those are the 2 biggest expenses

    • build roads

    • bridges

    • a bunch of other things

• if you tax something people do it less

  • taxes harm the economy

• government intervention

  • Who wanted this - stimulate the ecomnomy

    • more spending is good

    • more produces, more worker

    • in order to spend the government needs money somehow

• Lower income taxes

• cost of good

• lost of trade-offs

Elon supported trump and trump put elon on a htingy

Fiscal policy in America refers to government policies regarding taxation and spending. Congress is responsible for establishing fiscal policy, and it cannot implement no taxes because the government needs revenue. Major expenses include:

• Military funding

• Social Security

Government expenditures also cover infrastructure needs such as:

• Building roads

• Bridges

Fiscal policy is influenced by taxes, which can affect economic behavior; if something is taxed heavily, people tend to do it less. The fundamental goal of fiscal policy is to stimulate the economy through increased spending, leading to more production and job creation.