Obama vs. McCain. The United States economic growth has slowed and many fear that we are headed toward
|
|
- Ferdinand Payne
- 8 years ago
- Views:
Transcription
1 Ben Faanunu Econ 430 Obama vs. McCain The United States economic growth has slowed and many fear that we are headed toward a recession. From higher gas prices to failure in the housing sector, Americans are calling for government intervention to curb insecure feelings about the future. The upcoming election has everyone pulling for the candidate they think will help get America out of its economic slump. Barak Obama and John McCain, the two presumptive candidates for the Democratic and Republican parties respectively, are battling over the correct course of action. The two parties have outlined their policies which, for better or worse, will impact the economy. Obama s economic plan focuses on trying to get money back into the hands of taxpayers through rebates, tax cuts, and job protection. He also wants to protect consumers and stabilize the market through education and by regulating industries such as oil, banking, and business. His opponent McCain advocates tax cuts as well as cuts in government spending. McCain also wants to lift the economy by cutting business taxes, giving tax credits, and extending trade. Following in President Bush s footsteps, Obama intends to give an immediate tax rebate of $250 to workers and seniors to encourage consumer spending. A $75 billion rebate would push consumer spending up but by how much is debatable. Since there is no government budget surplus, the $75 billion will need to be borrowed or created. The creation of money would lead to higher inflation rates while borrowing would drive up interest rates. The raise in inflation would drive the value of the dollar down improving the affordability of US goods and services and increasing exports. This reduction in the US dollar purchasing power would temporarily decrease the trade deficit and boost the economy. Higher rates of interest on the other hand would cause business investment to fall impacting GDP negatively. His $500 per person or $1000 per family tax credit will eliminate income taxes for 10 million workers. The implications of this tax credit are the same as the tax rebate but include an Obama promise to make employers pay.
2 Microeconomics theory suggests that wage is equal to the marginal productivity of labor (MPL) which implies that if a laborer s marginal productivity is less than their wage they will become unemployed. This means that some fraction of the 10 million workers whose skills do not exceed the additional cost to the employers, will find themselves unemployed. This unemployment will mean less money in the hands of consumers and a need for more social programs to combat it. This same impact will be a result of pegging minimum wage to the inflation rate. Obama s pledge to create a living wage will increase minimum wage and disallow it to fall below its current purchasing power. Those whose labor does not meet the increased minimum wage benchmarks will find themselves unemployed. Increased costs for business will result in higher costs for consumers. This is the case even when an increase in minimum wage are said to have no effect on employment such discussed in Minimum Wages and Employment: A Case Study of the Fast- Food Industry in New Jersey and Pennsylvania. Although the authors claim that there were no ill effects on employment, they admit that the additional 2% cost because of the minimum wage increase caused a 3% increase in the cost to consumers. Increased costs to consumers mean a lower purchasing power especially for those workers only making a few dollars more than minimum wage. Instead of helping those without much education or training, which tend to be minorities, they become unemployed and experience lower standards of living. To address those with low incomes Obama will expand the Earned Income Tax Credit and Child Tax Credit for low-income workers, doubling funding for after-school programs, and eliminate income tax for senior citizens who make less than $50,000 a year. He will also give a 10% tax credit for mortgage-holders. Most of these tax cuts and credits are relatively easy to implement and don t require much higher government expenditures than what is currently being spent. The danger is in the budget deficit which seems to continue to grow year after year. The additional money needed will need to come from higher rates of taxes some where, the printing of money, or borrowing it form the private sector, all of which have negative consequences on the economy.
3 Another part of Obama s plan is to help small businesses by reducing self employment tax as well as eliminate capital gains tax. These will have similar consequences as indicated in the previous paragraph. Obama wants to protect labor but promote free trade which seems to be contradictory. Whenever we open our market to foreign countries those jobs which we do not enjoy comparative advantage are lost to foreign competitors. This leaves many laborers unemployed and unable to support their families. In economics the most difficult type of unemployment to overcome is structural. This type of unemployment is caused by changes in trade or technology which makes certain skills obsolete. This type of unemployment takes innovation and many times new education and training for the unemployed to recover. The benefit of trade is undeniable. While jobs to foreign competitors might be lost in trade, the fall in prices experienced by both sides brings us to new levels of standards of living. His focus on family implies expanding the Family Medical Leave Act and encourages businesses to have flexible work schedules. This type of regulation on businesses will increase the costs of providing goods and services which as already discussed are past on to the customer. His plan to double federal funding toward research will have the same negative impacts on the economy as tax credits and breaks. The social benefit of having more research though is the knowledge spill over which occurs when the government creates and innovates. Businesses which utilize the new technology gain comparative advantage and makes the first business who implements it the best shot of reaching economies of scale. This means new jobs, more tax revenue, and better products which are cheaper to buy. Part of his plan to protect the consumer is through creating a credit card rating system, bill of rights, and educating them on risk. The rating system would better asses individual credit ratings and the bill of rights would help protect them against interest charges on fees and unilateral changes. The rate of payday loans would be capped at 35% to protect those with low incomes and no alternative means to borrow money. Protecting consumers means keeping more money in their pockets by making it more difficult to get into a situation in which they cannot get
4 out of. Those who tend to be most exposed to exploitation are the poor and the uneducated. Helping them might in the future lead to fewer needed social services which may lead to lower government costs. McCain intends to cut taxes over all while making reform to programs such as social security. Alternative Minimum Tax (AMT) was intended to fall on the wealthy but now costs middle class families nearly $60 billion a year. He also intends to extend the Bush administration tax cuts worth $100 billion a year. Less than a third of the tax cuts will be offset by eliminating tax loopholes which are estimated to be around $45 billion a year. This would again keep more money in the hands of consumers but would only increase the GDP by the amount of their marginal propensity to consume. The grim forecast may cause the marginal propensity to consume to fall, which would indicate to producers to slow production, which would lead to unemployment, which would further perpetuate the cycle and cause a recession. Changing Social Security to add personal accounts which may end the need for Social Security is another great way to put money back into the hands of consumers. Those with greater control and access over their money will be able to invest into that which will give them the greatest return. This means more money available at retirement for families which will lead to fewer social programs and greater spending from the more mature consumers. Reducing government spending to offset tax cuts will help inflation and high rates of interest. Cutting pork-barrel spending and wasteful government spending will save taxpayers an estimated combined amount of $28 billion per year. McCain also intends to drop Congressional earmarks, funds to be spent on specific projects, which are worth about $60 billion per year. Because the effectiveness of government spending is so highly debatable, all we can say that inflation and interest rates will fall. Lower rates of inflation will mean that the purchasing power of Americans increase and allow them to enjoy higher standards of living. Lower interest rates mean more purchases from business investment as well as consumers.
5 McCain wants cut business taxes to combat some of the slow growth of the economy. Allowing business equipment and technology to be expensed, cutting corporate tax rates from 35% to 25%, and giving tax credits equal to 10% of wages spent on research and development would help businesses grow. Combine this potential for American businesses to grow with increased trade agreements from other countries will allow us to be more competitive in the world market. This would allow US companies to grow by allowing them to keep more of their earnings to invest in capital or research and development. That increase in spending by businesses will boost the GDP and cause unemployment to fall. There are many issues facing the Americans this coming election and each candidate have platforms for issues such as environment and health care which are not economic platforms but will none the less greatly effect the economy. It seems as though most of the Barak Obama s plans would increase government spending which would increase government regulation and control. John McCain s plans to cut government spending will only make government smaller and allow the market to function efficiently. While it is important to protect the poor and uneducated, government involvement seems to create more problems than it solves. These problems created by government increase in frequency and severity. Friedrich von Hayek believed that increasing government involvement means fewer freedoms for the individual. Those who in Obama s plan are meant to be helped will receive most of the negative effects of it. His plan seems to head America back into stagflation while McCain s seems to have no real net effect on the economy. While moving forward is preferred to standing still, even standing still is preferred to moving backward.
Econ 202 Section 2 Final Exam
Douglas, Fall 2009 December 17, 2009 A: Special Code 0000 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 2 Final Exam 1. The present value
More informationChapter 18. MODERN PRINCIPLES OF ECONOMICS Third Edition
Chapter 18 MODERN PRINCIPLES OF ECONOMICS Third Edition Fiscal Policy Outline Fiscal Policy: The Best Case The Limits to Fiscal Policy When Fiscal Policy Might Make Matters Worse So When Is Fiscal Policy
More informationChapter 10 Fiscal Policy Macroeconomics In Context (Goodwin, et al.)
Chapter 10 Fiscal Policy Macroeconomics In Context (Goodwin, et al.) Chapter Overview This chapter introduces you to a formal analysis of fiscal policy, and puts it in context with real-world data and
More informationBusinesses are affected by the economy An economy describes how a country spends its money This is determined by 5 factors
Economic Factors Businesses are affected by the economy An economy describes how a country spends its money This is determined by 5 factors Economic Growth Exchange Rates Rates Economic Factors Inflation
More informationChapter 12. Aggregate Expenditure and Output in the Short Run
Chapter 12. Aggregate Expenditure and Output in the Short Run Instructor: JINKOOK LEE Department of Economics / Texas A&M University ECON 203 502 Principles of Macroeconomics Aggregate Expenditure (AE)
More informationwww.citizenshipteacher.co.uk 2011 16228 1
The stock market www.citizenshipteacher.co.uk 2011 16228 1 Lesson objectives I will understand what a stock market is. I will identify what caused the downturn in the American Stock Market. www.citizenshipteacher.co.uk
More informationPolicy Focus. The Need for Social Security Reform. Republicans and Democrats increasingly acknowledge that reforming. what you need to know
Policy Focus The Need for Social Security Reform Recipes for Rational Government from the Independent Women s Forum Carrie Lukas, Managing Director, Independent Women s Forum August 2011 Volume 1, Number
More informationThe Tax (and Wage) Implications of Bernie Sanders s Medicare for All Health Plan
The Tax (and Wage) Implications of Bernie Sanders s Medicare for All Health Plan Citizens for Tax Justice February 2016 The Tax (and Wage) Implications of Bernie Sanders s Medicare for All Health Plan
More informationAGGREGATE DEMAND AND AGGREGATE SUPPLY The Influence of Monetary and Fiscal Policy on Aggregate Demand
AGGREGATE DEMAND AND AGGREGATE SUPPLY The Influence of Monetary and Fiscal Policy on Aggregate Demand Suppose that the economy is undergoing a recession because of a fall in aggregate demand. a. Using
More informationThe Case for a Tax Cut
The Case for a Tax Cut Alan C. Stockman University of Rochester, and NBER Shadow Open Market Committee April 29-30, 2001 1. Tax Increases Have Created the Surplus Any discussion of tax policy should begin
More informationFacts and Figures on the Middle-Class Squeeze in Idaho
Facts and Figures on the Middle-Class Squeeze in Idaho For hard-working, middle-class families all over the country, life during the Bush presidency has grown less affordable and less secure. President
More informationHistory. Discussion of Proposals
Introduction It is accepted by both parties that the Social Security (SS) trust funds will be exhausted by 2036. Based on the 2010 Trustees report the National Commission on Fiscal Responsibility and Reform
More informationThe President s Agenda for Tax Relief
The President s Agenda for Tax Relief These are the basic ideas that guide my tax policy: lower income taxes for all, with the greatest help for those most in need. Everyone who pays income taxes benefits
More informationEC2105, Professor Laury EXAM 2, FORM A (3/13/02)
EC2105, Professor Laury EXAM 2, FORM A (3/13/02) Print Your Name: ID Number: Multiple Choice (32 questions, 2.5 points each; 80 points total). Clearly indicate (by circling) the ONE BEST response to each
More informationTOP 10 WAYS THE OBAMA BUDGET DISPLACES PRIVATE ENTREPRENEURSHIP
TOP 10 WAYS THE OBAMA BUDGET DISPLACES PRIVATE ENTREPRENEURSHIP By: Joseph Onorati The President s 2010 budget proposal increases taxes and spending by magnitudes only matched previous to this year by
More informationA BIPARTISAN PLAN TO REDUCE OUR NATION S DEFICITS EXECUTIVE SUMMARY
A BIPARTISAN PLAN TO REDUCE OUR NATION S DEFICITS EXECUTIVE SUMMARY This bipartisan, comprehensive, and balanced plan consistent with the recommendations of the Bowles-Simpson fiscal commission that will:
More informationHow To Extend The Earned Income Tax Credit
Without Congressional Action, Improvements to Earned Income Tax Credit and Child Tax Credit Set to Expire in 2017 By Alex Meyer Earned Income Tax Credit (EITC) The Federal EITC was first enacted in 1975,
More informationTHE DEBT TAX A drain on our pocketbooks and the economy
THE DEBT TAX A drain on our pocketbooks and the economy Talking points What is the 'Debt Tax'? The United States federal government paid $332.5 billion in interest last year on the national debt. 1 This
More informationEcon 202 Section 4 Final Exam
Douglas, Fall 2009 December 15, 2009 A: Special Code 00004 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 4 Final Exam 1. Oceania buys $40
More information2.If actual investment is greater than planned investment, inventories increase more than planned. TRUE.
Macro final exam study guide True/False questions - Solutions Case, Fair, Oster Chapter 8 Aggregate Expenditure and Equilibrium Output 1.Firms react to unplanned inventory investment by reducing output.
More informationWomen s Economic Agenda Powerful impact on vote and turnout in 2014. Democracy Corps/WVWVAF & VPC National Survey April 8, 2014
Women s Economic Agenda Powerful impact on vote and turnout in 2014 Democracy Corps/WVWVAF & VPC National Survey April 8, 2014 Methodology: cell and demographic change This presentation is based on our
More informationa) Aggregate Demand (AD) and Aggregate Supply (AS) analysis
a) Aggregate Demand (AD) and Aggregate Supply (AS) analysis Determinants of AD: Aggregate demand is the total demand in the economy. It measures spending on goods and services by consumers, firms, the
More informationPre-Test Chapter 11 ed17
Pre-Test Chapter 11 ed17 Multiple Choice Questions 1. Built-in stability means that: A. an annually balanced budget will offset the procyclical tendencies created by state and local finance and thereby
More informationCongratulations! You reduced the debt to below 60% of GDP in 2018, and kept it at a sustainable level through 2030.
Congratulations! You reduced the debt to below 60% of GDP in 2018, and kept it at a sustainable level through 2030. Dollars in Billions that you need to cut to get under 60% of the GDP by 2018. $0 See
More informationMONEY, INTEREST, REAL GDP, AND THE PRICE LEVEL*
Chapter 11 MONEY, INTEREST, REAL GDP, AND THE PRICE LEVEL* The Demand for Topic: Influences on Holding 1) The quantity of money that people choose to hold depends on which of the following? I. The price
More informationWhy Investing in America s Infrastructure Will Help Our Small Businesses Grow Right Now and Keep Them Competitive for the Future
Why Investing in America s Infrastructure Will Help Our Small Businesses Grow Right Now and Keep Them Competitive for the Future 2014 America on the Move Summit at Harvard Business School February 26,
More information2 0 0 0 E D I T I O N CLEP O F F I C I A L S T U D Y G U I D E. The College Board. College Level Examination Program
2 0 0 0 E D I T I O N CLEP O F F I C I A L S T U D Y G U I D E College Level Examination Program The College Board Principles of Macroeconomics Description of the Examination The Subject Examination in
More informationHEALTH CARE REFORM FREQUENTLY ASKED QUESTIONS
HEALTH CARE REFORM FREQUENTLY ASKED QUESTIONS Consumers When will the health care reform law take effect? The health insurance reforms adopted as part of the Patient Protection and Affordable Care Act
More informationSTATEMENT BY SEN. BERNARD SANDERS ON SOCIAL SECURITY
STATEMENT BY SEN. BERNARD SANDERS ON SOCIAL SECURITY Sometimes we all tend to take things for granted and we forget that Social Security is the most successful government program in our nation's history.
More informationPractice Problems on Current Account
Practice Problems on Current Account 1- List de categories of credit items and debit items that appear in a country s current account. What is the current account balance? What is the relationship between
More information3 Macroeconomics LESSON 8
3 Macroeconomics LESSON 8 Fiscal Policy Introduction and Description Fiscal policy is one of the two demand management policies available to policy makers. Government expenditures and the level and type
More informationUsing an appropriately labeled money market graph, show the effects of an open market purchase of government securities by the FED on :
Using an appropriately labeled money market graph, show the effects of an open market purchase of government securities by the FED on : The money supply Interest rates Nominal Interest rates i1 i2 Sm1
More informationMacroeconomics, Fall 2007 Exam 3, TTh classes, various versions
Name: _ Days/Times Class Meets: Today s Date: Macroeconomics, Fall 2007 Exam 3, TTh classes, various versions Read these Instructions carefully! You must follow them exactly! I) On your Scantron card you
More informationEconomic Outlook 2009/2010
Economic Outlook 29/21 s Twenty-Eighth Annual Forecast Luncheon Paul R. Portney Dean, Professor of Economics, and Halle Chair in Leadership Marshall J. Vest Director Economic and Business Research Center
More informationQ&A on tax relief for individuals & families
Q&A on tax relief for individuals & families A. Tax cuts individuals What are the new tax rates? The table below shows the new tax rates being rolled out from 1 October 2008, 1 April 2010 and 1 April 2011,
More informationBUSINESS ECONOMICS CEC2 532-751 & 761
BUSINESS ECONOMICS CEC2 532-751 & 761 PRACTICE MACROECONOMICS MULTIPLE CHOICE QUESTIONS Warning: These questions have been posted to give you an opportunity to practice with the multiple choice format
More information13. If Y = AK 0.5 L 0.5 and A, K, and L are all 100, the marginal product of capital is: A) 50. B) 100. C) 200. D) 1,000.
Name: Date: 1. In the long run, the level of national income in an economy is determined by its: A) factors of production and production function. B) real and nominal interest rate. C) government budget
More informationHW 2 Macroeconomics 102 Due on 06/12
HW 2 Macroeconomics 102 Due on 06/12 1.What are the three important macroeconomic goals about which most economists, and society at large, agree? a. economic growth, full employment, and low interest rates
More informationFISCAL POLICY* Chapter. Key Concepts
Chapter 11 FISCAL POLICY* Key Concepts The Federal Budget The federal budget is an annual statement of the government s expenditures and tax revenues. Using the federal budget to achieve macroeconomic
More informationThe Macroeconomic Situation and Monetary Policy in Russia. Ladies and Gentlemen,
The Money and Banking Conference Monetary Policy under Uncertainty Dr. Sergey Ignatiev Chairman of the Bank of Russia (The 4 th of June 2007, Central Bank of Argentina, Buenos Aires) The Macroeconomic
More informationPolitics, Surpluses, Deficits, and Debt
Defining Surpluses and Debt Politics, Surpluses,, and Debt Chapter 11 A surplus is an excess of revenues over payments. A deficit is a shortfall of revenues relative to payments. 2 Introduction After having
More informationINTRODUCTION TO MACROECONOMICS MIDTERM- SAMPLE QUESTIONS
INTRODUCTION TO MACROECONOMICS MIDTERM- SAMPLE QUESTIONS MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In May 2009, Ford Motor Company's sales
More informationMacroeconomics Machine-graded Assessment Items Module: Fiscal Policy
Macroeconomics Machine-graded Assessment Items Module: Fiscal Policy Machine-graded assessment question pools are provided for your reference and are organized by learning outcome. It is your responsibility
More informationCHAPTER 7: AGGREGATE DEMAND AND AGGREGATE SUPPLY
CHAPTER 7: AGGREGATE DEMAND AND AGGREGATE SUPPLY Learning goals of this chapter: What forces bring persistent and rapid expansion of real GDP? What causes inflation? Why do we have business cycles? How
More informationHow do the 2016 Presidential Tax Plans Compare So Far?
How do the 2016 Presidential Tax Plans Compare So Far? 10-Year GDP Growth 10.0% 16.0% -1.0% 13.9% 15.0% -9.5% 11.5% 10-Year Capital Investment Growth 28.8% 46.6% -2.8% 43.9% 48.9% -18.6% 29% 10-Year Wage
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Suvey of Macroeconomics, MBA 641 Fall 2006, Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Modern macroeconomics emerged from
More informationMONEY, INTEREST, REAL GDP, AND THE PRICE LEVEL*
Chapter 11 MONEY, INTEREST, REAL GDP, AND THE PRICE LEVEL* Key Concepts The Demand for Money Four factors influence the demand for money: The price level An increase in the price level increases the nominal
More information1. Firms react to unplanned inventory investment by increasing output.
Macro Exam 2 Self Test -- T/F questions Dr. McGahagan Fill in your answer (T/F) in the blank in front of the question. If false, provide a brief explanation of why it is false, and state what is true.
More information2008 Pennsylvania, PA House District xxxxx
2008 Pennsylvania, PA House District xxxxx Candidates: Don Walko, Democrat No Opponent Questions: Electricity Deregulation Lottery Fund & Home/Community Care Health Care Reform Property Tax Consumer Protection
More informationTHE MIDDLE-CLASS TAX CUTS IMPACT ON CONSUMER SPENDING & RETAILERS
THE MIDDLE-CLASS TAX CUTS IMPACT ON CONSUMER SPENDING & RETAILERS The National Economic Council & The Council of Economic Advisers November 2012 EMBARGOED FOR 6:00 AM, MONDAY NOVEMBER 26, 2012 The Middle-Class
More information1. A is a tax system which has higher tax rates on people with lower incomes.
Homework 15 1. A is a tax system which has higher tax rates on people with lower incomes. A. regressive tax B. progressive tax C. flat tax D. a value added tax 2. The is calculated by taking the total
More informationLecture 3: Int l Finance
Lecture 3: Int l Finance 1. Mechanics of foreign exchange a. The FOREX market b. Exchange rates c. Exchange rate determination 2. Types of exchange rate regimes a. Fixed regimes b. Floating regimes 3.
More informationChapter 18. How well did Presidents Roosevelt, Taft, and Wilson promote progressive goals in national policies? Essential Question 18.
Chapter 18 Essential Question How well did Presidents Roosevelt, Taft, and Wilson promote progressive goals in national policies? 18.1 President Theodore Roosevelt tames the trusts. Theodore Roosevelt
More informationUniversity of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor: Michael G. Lanyi
University of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor: Michael G. Lanyi CH 25 Exch Rate & BofP 1) Foreign currency is A) the market for foreign exchange.
More informationTAX FREEDOM DAY IN SPAIN 2016 REPORT
TAX FREEDOM DAY IN SPAIN 2016 REPORT How many taxes does an average Spaniard pay during his life? We consider the case of a taxpayer who enters the jobs market at age 16 and slowly builds a professional
More informationDeficits as far as the eye can see
Testimony of Mark A. Calabria, Ph.D. Director, Financial Regulation Studies, Cato Institute Submitted to the Subcommittee on Insurance, Housing, & Community Opportunity House Committee on Financial Services
More informationProject LINK Meeting New York, 20-22 October 2010. Country Report: Australia
Project LINK Meeting New York, - October 1 Country Report: Australia Prepared by Peter Brain: National Institute of Economic and Industry Research, and Duncan Ironmonger: Department of Economics, University
More informationcepr briefing paper Defaulting on The Social Security Trust Fund Bonds: Winner and Losers CENTER FOR ECONOMIC AND POLICY RESEARCH SUMMARY Dean Baker 1
cepr CENTER FOR ECONOMIC AND POLICY RESEARCH briefing paper Defaulting on The Social Security Trust Fund Bonds: Winner and Losers Dean Baker 1 July 23, 2001 SUMMARY The United States government has never
More informationEcon 202 Section 2 Midterm 2
Douglas, Fall 2009 November 3, 2009 A: Special Code 0000 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 2 Midterm 2 1. The sale of stocks
More informationFundamental Economic Factors
Classical Model Real business cycle theory seeks to explain business cycles via the classical model. There is general equilibrium: demand equals supply in every market. An ideological conviction underlies
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Econ 111 Summer 2007 Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The classical dichotomy allows us to explore economic growth
More informationWaste and inefficiency in the Bush Medicare prescription drug plan: Allowing Medicare to negotiate lower prices could save $30 billion a year
Waste and inefficiency in the Bush Medicare prescription drug plan: Allowing Medicare to negotiate lower prices could save $30 billion a year By Roger Hickey & Jeff Cruz In cooperation with Dean Baker,
More informationA super waste of money
A super waste of money Redesigning super tax concessions April 2015 ISSN 1836-9014 Matt Grudnoff Policy Brief About TAI The Australia Institute is an independent public policy think tank based in Canberra.
More informationAnswers. Event: a tax cut 1. affects C, AD curve 2. shifts AD right 3. SR eq m at point B. P and Y higher, unemp lower 4.
A C T I V E L E A R N I N G 2: Answers Event: a tax cut 1. affects C, AD curve 2. shifts AD right 3. SR eq m at point B. P and Y higher, unemp lower 4. Over time, P E rises, SRAS shifts left, until LR
More informationGreening Jobs and Growth Potential in Europe
Greening Jobs and Growth Potential in Europe Prof. Diana Mangalagiu Smith School of Enterprise and Environment, Oxford University & Global Climate Forum diana.mangalagiu@smithschool.ox.ac.uk GREEN JOBS
More informationChapter 12: Gross Domestic Product and Growth Section 1
Chapter 12: Gross Domestic Product and Growth Section 1 Key Terms national income accounting: a system economists use to collect and organize macroeconomic statistics on production, income, investment,
More informationhttp://angel.bfwpub.com/section/content/default.asp?wci=pgt...
Hmwk 10 1. Which of the following people are counted as unemployed? A. a person who wants to work but stopped searching six months ago B. a person out of work but actively searching for work C. a person
More informationMunicipal Bond Tax Legislation. 202-962-7430 or mdecker@sifma.org
Municipal Bond Tax Legislation Michael Decker Michael Decker 202-962-7430 or mdecker@sifma.org The tax-exemption is under threat. 1 The political agenda is dominated by deficit and debt reduction and tax
More informationGovernment Budget and Fiscal Policy CHAPTER
Government Budget and Fiscal Policy 11 CHAPTER The National Budget The national budget is the annual statement of the government s expenditures and tax revenues. Fiscal policy is the use of the federal
More informationAccounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.
A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe
More informationWhy Some Tax Units Pay No Income Tax
Why Some Tax Units Pay No Income Tax Rachel Johnson, James Nunns, Jeffrey Rohaly, Eric Toder, Roberton Williams Urban-Brookings Tax Policy Center July 2011 ABSTRACT About 46 percent of American households
More informationSocial Security Frequently Asked Questions
Social Security Frequently Asked Questions I m too young to care about Social Security, aren t I? We must protect Social Security for our parents and grandparents Many young people have grandparents or
More informationUnited States Progress Report on Fossil Fuel Subsidies Part 1: Identification and Analysis of Fossil Fuel Provisions
A. Production Fossil Fuel Subsidies United States Progress Report on Fossil Fuel Subsidies Part 1: Identification and Analysis of Fossil Fuel Provisions There are a number of tax preferences, described
More informationTax Reform: Congressional Reality or a Congressional Myth? Eric Grey, Director, Government Relations
Tax Reform: Congressional Reality or a Congressional Myth? Eric Grey, Director, Government Relations Current Budget Outlook The Congressional Budget Office (CBO) last Tuesday released its latest long-term
More informationEstonia and the European Debt Crisis Juhan Parts
Estonia and the European Debt Crisis Juhan Parts Estonia has had a quick recovery from the recent recession and its economy is in better shape than before the crisis. It is now much leaner and significantly
More informationBudget Magic and the Social Security Tax Cap
ECONOMIC ANALYSIS Budget Magic and the Social Security Tax Cap By Martin A. Sullivan martysullivan@comcast.net Raising the annually adjusted cap on wages subject to the Social Security tax in 2005 from
More informationForecasting Chinese Economy for the Years 2013-2014
Forecasting Chinese Economy for the Years 2013-2014 Xuesong Li Professor of Economics Deputy Director of Institute of Quantitative & Technical Economics Chinese Academy of Social Sciences Email: xsli@cass.org.cn
More informationChapter 4 Consumption, Saving, and Investment
Chapter 4 Consumption, Saving, and Investment Multiple Choice Questions 1. Desired national saving equals (a) Y C d G. (b) C d + I d + G. (c) I d + G. (d) Y I d G. 2. With no inflation and a nominal interest
More informationThis chapter introduces some basic principles for evaluating your state s tax
Two: Basic Principles and terms 5 CHAPTER TWO Basic Principles and Terms This chapter introduces some basic principles for evaluating your state s tax system and walks you through some of the nuts and
More informationFLEXIBLE EXCHANGE RATES
FLEXIBLE EXCHANGE RATES Along with globalization has come a high degree of interdependence. Central to this is a flexible exchange rate system, where exchange rates are determined each business day by
More informationchapter: Aggregate Demand and Aggregate Supply Krugman/Wells 2009 Worth Publishers 1 of 58
chapter: 12 >> Aggregate Demand and Aggregate Supply Krugman/Wells 2009 Worth Publishers 1 of 58 WHAT YOU WILL LEARN IN THIS CHAPTER How the aggregate demand curve illustrates the relationship between
More informationThe level of price and inflation Real GDP: the values of goods and services measured using a constant set of prices
Chapter 2: Key Macroeconomics Variables ECON2 (Spring 20) 2 & 4.3.20 (Tutorial ) National income accounting Gross domestic product (GDP): The market value of all final goods and services produced within
More informationWHY STUDY PUBLIC FINANCE?
Solutions and Activities to CHAPTER 1 WHY STUDY PUBLIC FINANCE? Questions and Problems 1. Many states have language in their constitutions that requires the state to provide for an adequate level of education
More informationSupplemental Unit 5: Fiscal Policy and Budget Deficits
1 Supplemental Unit 5: Fiscal Policy and Budget Deficits Fiscal and monetary policies are the two major tools available to policy makers to alter total demand, output, and employment. This feature will
More informationCrossroads GPS National Survey of Registered Voters Regarding Health Care June 2-5, 2013
Crossroads GPS National Survey of Registered Voters Regarding Health Care June 2-5, 2013 Current Attitudes Toward the Health Care Reform Law Democrats think health care is a right, but Republicans and
More informationAFL-CIO. 2014 Election Night Survey
AFL-CIO 2014 Election Night Survey Methodology Public survey conducted by phone (landline and cell) on November 4 among 803 voters in Senate battleground states. States: AK, AR, CO, GA, IA, KS, KY, LA,
More informationStrategies to Manage the Ever Bigger Bite of Taxes
Tax Impact Series: Avoid Manage Defer AMG Funds Research and Analysis Strategies to Manage the Ever Bigger Bite of Taxes In this world, nothing can be said to be certain except death and taxes. Benjamin
More informationAssessment Schedule 2014 Economics: Demonstrate understanding of macro-economic influences on the New Zealand economy (91403)
NCEA Level 3 Economics (91403) 2014 page 1 of 10 Assessment Schedule 2014 Economics: Demonstrate understanding of macro-economic influences on the New Zealand economy (91403) Assessment criteria with Merit
More informationChapter 09 Federal Spending
Chapter 09 Federal Spending Multiple Choice Questions 1. Federal Spending in 2006 was a. $2.0 billion b. $2.0 trillion c. $2.2 trillion D. $2.8 trillion 2. Federal Spending as a percentage of GDP peaked
More informationDaniel Smith/Corbis 32
32 Daniel Smith/Corbis MONEY for NOTHING The Case for Eliminating US Fossil Fuel Subsidies Special tax provisions subsidize US oil, gas, and coal companies to the tune of $4.9 billion a year but have little
More informationChapter 17. Preview. Introduction. Fixed Exchange Rates and Foreign Exchange Intervention
Chapter 17 Fixed Exchange Rates and Foreign Exchange Intervention Slides prepared by Thomas Bishop Copyright 2009 Pearson Addison-Wesley. All rights reserved. Preview Balance sheets of central banks Intervention
More informationThe U.S. Economy after September 11. 1. pushing us from sluggish growth to an outright contraction. b and there s a lot of uncertainty.
Presentation to the University of Washington Business School For delivery November 15, 2001 at approximately 8:05 AM Pacific Standard Time (11:05 AM Eastern) By Robert T. Parry, President and CEO of the
More informationThe 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education
POLICY BRIEF Visit us at: www.tiaa-crefinstitute.org. September 2004 The 2004 Report of the Social Security Trustees: Social Security Shortfalls, Social Security Reform and Higher Education The 2004 Social
More informationINTERNATIONAL MONETARY FUND. Russian Federation Concluding Statement for the 2012 Article IV Consultation Mission. Moscow, June 13, 2012
INTERNATIONAL MONETARY FUND Russian Federation Concluding Statement for the 2012 Article IV Consultation Mission Moscow, June 13, 2012 The Russian economy has recovered from the 2008-09 crisis and is now
More informationNational Small Business Network
National Small Business Network WRITTEN STATEMENT FOR THE RECORD US SENATE COMMITTEE ON FINANCE U.S. HOUSE OF REPRESENTATIVES COMMITTEE ON WAYS AND MEANS JOINT HEARING ON TAX REFORM AND THE TAX TREATMENT
More informationLong Island is rapidly losing its lead in private health care coverage. That distinctive mark of middle class success - private
RESEARCH REPORT Regional Labor Review Fall 1998 Long Island s Ailing Health Care Benefits by Niev Duffy Long Island is rapidly losing its lead in private health care coverage. That distinctive mark of
More informationChapter 13. Aggregate Demand and Aggregate Supply Analysis
Chapter 13. Aggregate Demand and Aggregate Supply Analysis Instructor: JINKOOK LEE Department of Economics / Texas A&M University ECON 203 502 Principles of Macroeconomics In the short run, real GDP and
More informationVERY FEW SMALL BUSINESS OWNERS WOULD FACE TAX INCREASES UNDER PRESIDENT S BUDGET Vast Majority Would Benefit From Other Key Proposals
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org www.cbpp.org February 28, 2009 VERY FEW SMALL BUSINESS OWNERS WOULD FACE TAX INCREASES UNDER PRESIDENT
More informationEconomics 101 Multiple Choice Questions for Final Examination Miller
Economics 101 Multiple Choice Questions for Final Examination Miller PLEASE DO NOT WRITE ON THIS EXAMINATION FORM. 1. Which of the following statements is correct? a. Real GDP is the total market value
More informationStock Market Crash and Great Depression
Stock Market Crash and Great Depression USHC-7.4 Explain the causes and effects of the stock market crash of 1929 and the Great Depression, including the disparity in incomes, limited government regulation,
More information