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Chapter 16

Economic Policy

Book Version 13
By Boundless
Boundless Political Science
Political Science
by Boundless
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Section 1
Goals of Economic Policy
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The Goals of Economic Policy

There are four major goals of economic policy: stable markets, economic prosperity, business development and protecting employment.

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Fours Schools of Economic Thought: Classical, Marxian, Keynesian, and the Chicago School.

Mainstream modern economics can be broken down into four schools of economic thought: classical, Marxian, Keynesian, and the Chicago School.

Section 2
The History of Economic Policy
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The Nineteenth Century

Associated with industrialism and capitalism, the 19th century looms large in the history of economic policy and economic thought.

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The Progressive Era

The Progressive Era was one of general prosperity after the Panic of 1893; a severe depression that ended in 1897.

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The Great Depression and the New Deal

The New Deal was a series of economic programs enacted in the United States between 1933 and 1936 in response to the Great Depression.

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Social Regulation

Social policy refers to guidelines, principles, legislation and activities that affect the living conditions conducive to human welfare.

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Deregulation

Deregulation is the act or process of removing or reducing state regulations.

Section 3
Economic Policy
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Monetary Policy

Monetary policy is the process by which the monetary authority of a country controls the supply of money.

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Fiscal Policy

Fiscal policy is the use of government revenue collection or taxation, and expenditure (spending) to influence the economy.

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Income Security Policy

Fiscal policy is considered to be any change the government makes to the national budget in order to influence a nation's economy.

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Regulation and Antitrust Policy

Antitrust laws are a form of marketplace regulation intended to prohibit monopolization and unfair business practices.

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Subsidies and Contracting

A subsidy is assistance paid to business, economic sectors, or producers; a contract is an agreement between two or more parties.

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The Public Debt

Government debt, also known as public debt, or national debt, is the debt owed by a central government.

Section 4
Taxes
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The Federal Tax System

The United States is a federal republic with autonomous state and local governments with taxes imposed at each level.

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Federal Income Tax Rates

Federal income tax is levied on the income of individuals or businesses, which is the total income minus allowable deductions.

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Tax Loopholes and Lowered Taxes

Tax evasion is the term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means.

Section 5
Politics and Economic Policy
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Fiscal Policy and Policy Making

Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.

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Deficit Spending, the Public Debt, and Policy Making

Deficit spending and public debt are controversial issues within economic policy debates.

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Monetary Policy

Monetary policy is the process by which a country controls the supply of money in order to promote economic growth and stability.

Income Security Policy and Policy Making

Income security policy is designed to provide a population with income at times when they are unable to care for themselves.

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The Changing Federal Role in the Economy

The role of the federal government in the economy has been a central debate among economists and political scientists for two centuries.

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Politics and the Great Recession of 2008

Global political instability is rising fast due to the global financial crisis and is creating new challenges that need to be managed.

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Business and Labor in the Economy

The relationship between business and labor has been at the center of economic and political theory for the last two centuries.

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Domestic Policy
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Economic Policy
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Social Policy
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