Fiscal Police (Part 12: Macroeconomic Policy)
(I've attached the chapter 32 summary from the ebook. I also included the video link at the end of my notes. If you need more, please let me know)
Upon viewing the link below that pertains to
- the Park Avenue: Money, Power and the American Dream | WHY POVERTY? documentary, Park Avenue: Money, Power and the American Dream⎜WHY POVERTY?⎜(Documentary) - YouTube and reading
- the Ch.32 material in the Foundations of Economics textbook,
please compose a short essay by answering the following questions in a meaningful manner:
Q1: Given that advanced economies and many regions throughout the world experienced a significant increase in income inequality since approximately the 1990s, and the worldwide economic and financial crisis largely contributed to the rise in income distribution inequality, how should the global governments utilize their most powerful tool – fiscal policy – to adequately address this type of inequality?
Q2: Considering the current state of the U.S. economy and all the knowledge that you have acquired during the semester so far, what type of fiscal policy would you recommend the federal government to pursue in order to bring the economy from a recessionary gap. That is, if your concern lies in (a) the provision of public services, then would you advise the policy package to include increased spending? If yes, then on what programs and how could the government fund this expenditure? (b) the size of the budget deficit, then how would you advise lowering it? (c) the tax wedge, then would your preferred policy package include tax cuts? If yes, then what public services would you advise the government to cut to achieve lower taxes?
Include examples from the film and readings to support your paper of 600 words minimum and to receive full credit for the assignment.
Please follow the guidelines below for submitting your paper:
1. Write the short essay in MLA format.
2. Use only the sources provided in the prompt.