Fiscal Policy

Written By Jonathan Milner

Definition

Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty. Fiscal policy is the means by which the government adjusts its budget balance through spending and revenue changes to influence broader economic conditions. n the United States, fiscal policy is directed by both the executive and legislative branches of the government. In the executive branch, the President and the Secretary of the Treasury, often with economic advisers' counsel, direct fiscal policies.

Example

 
 

Questions

  1. What is fiscal policy?

  2. Who sets fiscal policy?

  3. What does fiscal policy effect?

  4. How does fiscal policy effect you?

  5. What emoji would do a good job of expressing the concept of fiscal policy?

  6. How much control do presidents have over fiscal policy?

  7. How much impact does fiscal policy have over a president’s popularity?

  8. What is the difference between fiscal policy and monetary policy?

Remember!

Now, let’s commit this term to our long-term memory. On a scrap piece of paper, take 10 or 20 seconds to draw fiscal policy! Draw with symbols or stick figures if you wish. Nothing fancy. Don’t expect a masterpiece. No one else will see this but you. Look at your drawing. That’s all - now it’s downloaded into your memory. Destroy the piece of paper in a most delightful way.

Further Review

GoPo Glossary

Jonathan Milner

Civics Maven!

https://www.gopopro.com/
Previous

New Jersey Plan
Next

Monetary Policy