Week 3 Discussion 1 & 2 Response
kingstonman41
Week3Discussion1ClassmatesResponse.docxBUS626 Week 3 - Discussion Forum 1
Guided Response: Respond to at least two of your fellow students’ and to your instructor’s posts in a substantive manner and provide information or concepts that they may not have considered. Each response should have a minimum of 100 words. Support your position by using information from the week’s readings. You are encouraged to post your required replies earlier in the week to promote more meaningful and interactive discourse in this discussion forum.
Below are two of my classmates that need responses to their discussions. They are Kristopher Wentworth and Tiffany Gordon
Kristopher Wentworth
Fiscal policy in my own words is much like the knob on a sink, it is the government's ability to adjust the amount of spending it does and the tax rates. This is done in order to manipulate and observe the nation's economy and to direct the national economy a certain way. Now you might see this an effort in futility like herding bees but it works, for the most part. In 1943 FDR utilized spending to bring the united states out of the great impression but that was brought upon by the start of world war 2. What spending does is it helps boost the economy sort of like getting a badly needed IV when you are dehydrated or sick. The effect that this has on the U.S. economy is massive and there are many examples throughout the 1900s to show how strong the effect of fiscal policy is. like in 1997 there was a disparity in the gross revenue and expenditures which lead to a surplus that can then be reinvested and calculated throughout the country. Overall I think it is an important feature of the government that helps us with the economy and might be inconvenient at times but allows us to bounce back.
Gwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D. A. (2018). Macroeconomics: Private and public choice (16th ed.). https://www.cengage.com
Tiffany Gordon
Fiscal policy is used to talk about the spending and the taxes of the government. The government has a budget just like we do as individuals.
An advantage of fiscal policy is the rates of that which is affected by unemployment. When the unemployment rate is high the government can use this money to lower taxes. Another pro would be taxing stuff that people shouldn't do such as having a high tax on cigarettes and liquor. It is also beneficial to individuals that need help such as food stamps and other government services. The cons of fiscal policy are that the government easily spends more money then they should be and another con would be raising taxes.
There are two types of fiscal policy expansionary and contractionary . When it comes to expansionary is when the government expands the money supply in the economy. What is going on now would be a good example of expansionary policy. The reason I say this is because the government has spread out the money that they have to better provide for us Americans that are in need. “An example of such an effort is the Economic Stimulus Act of 2008, in which the government attempted to boost the economy (Links to an external site.) by sending taxpayers $600 or $1,200 depending on their marital status and number of dependents” (Investopedia (Links to an external site.)).The economy is in a bad situation right now and the government is helping the economy by providing the stimulus check to people.
References:
https://visionlaunch.com/pros-and-cons-of-fiscal-policy/ (Links to an external site.)
Gwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D. A. (2018). Macroeconomics: Private and public choice (16th ed.). Retrieved from https://www.cengage.com
