Essay Available:
Pages:
1 page/≈275 words
Sources:
1 Source
Style:
APA
Subject:
Literature & Language
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 3.6
Topic:
Evolution of Fiscal Policy
Essay Instructions:
ESSAY (200-300 words): Briefly discuss the highlights of fiscal policy's evolution in the United States over the last century.
** if possible use source from ECON Macro by Willaim A. McEachern (available online via cengage learning)**
Essay Sample Content Preview:
Brief History of Fiscal Policy in the US
Prior to the 1930s, fiscal policy was seldom used because classical economics was widely dominant. For economists at the time, the best way to ensure prosperity was to allow the market to move on its own, or laissez faire. But with the Great Depression, a condition of severe economic contraction which lasted for four (4) years, the government could no longer sit back and wait for the market to adjust. It became apparent that the economy needed new resources, and the government had to take on a much larger role in stimulating the market. Government started to spend on infrastructure in order to employ its people, it lent new capital to ailing businesses and then instituted a taxation system to ensure that new funds are available. ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "family" : "McEachern", "given" : "William A." } ], "edition" : "2nd ed", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2010" ] ] }, "publisher" : "Cengage Learning", "title" : "ECON Macro", "type" : "book" }, "uris" : [ "/documents/?uuid=1fce4bfb-ceee-4b41-be60-e6d95730a455" ] } ], "mendeley" : { "manualFormatting" : "(McEachern, 2010, p.181)", "previouslyFormattedCitation" : "(McEachern, 2010)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(McEachern, 2010, p.181). With new resources entering the market through fiscal policy, the economy was restored. To ensure that such depression would no longer happen, the government instituted "progressive income tax, unemployment insurance, and welfare benefits…[to serve as] income distribution programs" ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "family" : "McEachern", "given" : "William A." } ], "edition" : "2nd ed", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2010" ] ] }, "publisher" : "Cengage Learning", "title" : "ECON Macro", "type" : "book" }, "uris" : [ "/documents/?uuid=1fce4bfb-ceee-4b41-be60-e6d95730a455" ] } ], "mendeley" : { "manualFormatting" : "(McEachern, 2010, p.182)", "previouslyFormattedCitation" : "(McEachern, 2010)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(McEachern, 2010, p.182).
In the 1960s, fiscal policy was again used to further stimulate the expanding economy. Cuts in tax rates were instituted to further boost income rate, consumption and business activity. This period was known as the Golden Age of fiscal policy. By the 1970s, however, new problems started to surface such as increasing inflation and unemployment despite the increasing government spending. Because of this economists began to research on the possible effects of fiscal policy in order to learn when it is most effective to use.
The recession of 2007-2009 has lead to another series of government spending as various fin...
Prior to the 1930s, fiscal policy was seldom used because classical economics was widely dominant. For economists at the time, the best way to ensure prosperity was to allow the market to move on its own, or laissez faire. But with the Great Depression, a condition of severe economic contraction which lasted for four (4) years, the government could no longer sit back and wait for the market to adjust. It became apparent that the economy needed new resources, and the government had to take on a much larger role in stimulating the market. Government started to spend on infrastructure in order to employ its people, it lent new capital to ailing businesses and then instituted a taxation system to ensure that new funds are available. ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "family" : "McEachern", "given" : "William A." } ], "edition" : "2nd ed", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2010" ] ] }, "publisher" : "Cengage Learning", "title" : "ECON Macro", "type" : "book" }, "uris" : [ "/documents/?uuid=1fce4bfb-ceee-4b41-be60-e6d95730a455" ] } ], "mendeley" : { "manualFormatting" : "(McEachern, 2010, p.181)", "previouslyFormattedCitation" : "(McEachern, 2010)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(McEachern, 2010, p.181). With new resources entering the market through fiscal policy, the economy was restored. To ensure that such depression would no longer happen, the government instituted "progressive income tax, unemployment insurance, and welfare benefits…[to serve as] income distribution programs" ADDIN CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "family" : "McEachern", "given" : "William A." } ], "edition" : "2nd ed", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2010" ] ] }, "publisher" : "Cengage Learning", "title" : "ECON Macro", "type" : "book" }, "uris" : [ "/documents/?uuid=1fce4bfb-ceee-4b41-be60-e6d95730a455" ] } ], "mendeley" : { "manualFormatting" : "(McEachern, 2010, p.182)", "previouslyFormattedCitation" : "(McEachern, 2010)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" }(McEachern, 2010, p.182).
In the 1960s, fiscal policy was again used to further stimulate the expanding economy. Cuts in tax rates were instituted to further boost income rate, consumption and business activity. This period was known as the Golden Age of fiscal policy. By the 1970s, however, new problems started to surface such as increasing inflation and unemployment despite the increasing government spending. Because of this economists began to research on the possible effects of fiscal policy in order to learn when it is most effective to use.
The recession of 2007-2009 has lead to another series of government spending as various fin...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
👀 Other Visitors are Viewing These APA Essay Samples:
- INTEGRATED MARKET COMMUNICATION1 page/≈550 words | 2 Sources | APA | Literature & Language | Essay |
- Nominal and Real Returns2 pages/≈550 words | 4 Sources | APA | Literature & Language | Essay |
- The beautiful mind: Watch the movie "The beautiful mind" and write on page reflec. . .1 page/≈275 words | No Sources | APA | Literature & Language | Essay |
- The Science of Global Climate Change and Human Influences1 page/≈275 words | 1 Source | APA | Literature & Language | Essay |
- Evaluate a Process for Making Decisions2 pages/≈550 words | 4 Sources | APA | Literature & Language | Essay |
- Benefits of Having a Job2 pages/≈550 words | No Sources | APA | Literature & Language | Essay |
- Racial discrimination and global justice1 page/≈275 words | 1 Source | APA | Literature & Language | Essay |