4.3 Fiscal Policy

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​FISCAL POLICY

HOW:
  • Explain the meaning and purpose of a government budget
  • ​Identify the main areas of government spending and the reasons for and effects of spending in these areas
  • Understand how taxation is used to finance government spending, influence market outcomes and redistribute incomes
  • Describe the qualities of a good tax
  • Identify and contrast the main forms of tax; progressive, regressive, proportional, direct and indirect
  • Analyze the  impact of taxation on consumers, producers, government and the macroeconomy
  • Describe the instruments of fiscal policy (changes in tax and government spending) and their impact on the budget balance or imbalance
  • Analyse how fiscal policy measures may be used by a government to achieve their macroeconomics aims
​

WHY: In most developed countries the size of government expenditure as a percentage of total national expenditure (the G component of AD) can be as much as 50% of the economy and is usually at least 30%. It is important to note therefore the importance that government expenditure has on the national economy.
4.3.1 DEFINITION OF THE BUDGET
fiscal_policy_key_terms.docx
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4.3.2 REASONS FOR GOVERNMENT SPENDING
4.3.3 REASONS FOR TAXATION
4.3.4 PRINCIPLES OF TAXATION

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agree_or_disagree_taxation.pptx
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Made with Padlet

U.S. National Debt Clock : Real Time

US National Debt Clock : Real Time U.S. National Debt Clock

NEWS STORIES RELATED TO FISCAL POLICY AND THE CORONA VIRUS:

Will coronavirus mean I have to pay more tax?

Coronavirus has brought large parts of the economy to a standstill, and the government has had to spend billions to support workers, businesses and the NHS. So where is all the money going to come from? It's still very early in the crisis, so it's impossible to tell how big the final bill will be.

US to borrow record $3tn in pandemic spending

The US has said it wants to borrow a record $3tn (£2.4tn) in the second quarter, as coronavirus-related rescue packages blow up the budget. The sum is more than five times the previous quarterly record, set at the height of the 2008 financial crisis. In all of 2019, the country borrowed $1.28tn.

Why You Worked for the Government Until April 19, 2018

Tax Freedom Day ® is the first day each year that Americans work for themselves. In 2019 it arrived on April 16th. Every dollar earned before that pays for federal, state, and municipal government services. It's a way to visualize your tax burden.

Fig. 1: How is the federal budget drawn-up in the USA and why does this often result in government shut downs?
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The crisis in care

Over 10 months, a small team from the BBC's Panorama programme documented the realities of how the care system is working in England. Based in Somerset, they followed the stories of people needing care and of the people trying to provide it.

The human face behind mandatary social protection government expenditures in the UK.
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case study: Tax Cuts and Jobs Act of 2017 (December 2017)

On December 2018 the biggest reform of the tax system since the Reagan administration in 1980's was passed by Congress.
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fiscal_policy__1__1_igcse_.docx
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Evaluating FISCAL POLICY

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the bond market and the crowding-out effect

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        • Biomes
        • Microclimate Investigation
        • How did the impacts of the Haiti and Japanese earthquake compare?
        • Topic 2 Migration
        • Geography in the news
      • Year 7 History >
        • 1. The Ancient World >
          • a. Prehistoric Life >
            • Middle School History
          • b. Egypt or Rome? >
            • Historical Enquiry - Comparing Ancient Societies
            • Ancient Egypt
            • Ancient Rome
          • Assessment
        • 2. The Medieval World >
          • "Muck and Misery" Investigation
          • Medieval Guidebook Assessment
          • Medieval Baghdad
        • 3. The American West >
          • Native American Culture
          • The First Settlers
          • Pioneers
          • Cowboys and cow towns
          • Impact of settlement on the Native Americans
          • Assessment
        • 4. The Industrial World >
          • The Urban Game
        • 5. Civil Rights
        • 8 . Digital Library
  • HS Geography
    • IB Geography >
      • Introduction to IB Geography
      • Paper 1- Geographic Themes >
        • Urban Environments >
          • Urban sections 1-3
          • Sustainable Cities
        • Leisure, sport and Tourism >
          • Introduction to Leisure, sport and tourism
          • A global sporting event- The Olympics
          • Managing Rural Tourism Hotspots
          • Managing urban tourism hotspots
          • Tourism as a development strategy
          • Sustainable tourism
          • Variations in Sphere of Influence
          • The impact of Rural festivals
        • Geophysical Hazards >
          • Earthquakes
          • Volcanoes
          • Landslides
      • Paper 2: Geographic perspectives >
        • Changing populations >
          • Population density
          • Processes of population change >
            • Megacities
            • Forced migration
          • Possibilities of population change >
            • Aging population
            • Population policies
            • Gender Equality
            • Human trafficking
            • Demographic dividend
          • Debate: Should the UN curb population growth?
          • Population revision
        • Global Climate - Vulnerability and Resilience >
          • The causes of global climate change
          • Impacts of climate change
          • ​Disparities in exposure to climate change risk and vulnerability
          • GOVERNMENT LED ADAPTATION AND MITIGATION STRATEGIES
          • Civil society and corporate strategies to address climate change
        • Global resource consumption and security >
          • Global trends in consumption >
            • GLOBAL AND REGIONAL/CONTINENTAL PROGRESS TOWARDS POVERTY REDUCTION.
            • Measuring trends in global consumption
            • Patterns and trends in the availability and consumption of water
            • Global patterns and trends in the availability and consumption of land/food
            • Global patterns and trends in the availability and consumption of energy
          • Nexus thinking >
            • Two countries with contrasting levels of resource security...
            • Waste disposal and recycling
          • Resource Stewardship >
            • Divergent thinking about population and resource consumption trends
            • The circular economy
        • Infographics
      • Paper 3: Global Interactions >
        • Power, place and networks >
          • Global networks and flows
          • Global Interactions & Global Power
          • Human and physical influences on global interactions
        • HUMAN DEVELOPMENT & DIVERSITY >
          • Development opportunities
          • Changing cultures and identities
          • Cultural Hybridity
          • Local responses to global interactions
        • Environmental risks
        • Geopolitical and economic risks
      • IB Revision- mocks 2021
      • IB Revision
      • Internal Assessment
      • Extended Essay in Geography
    • New IGCSE Edexcel Geography >
      • Paper 1 - Physical Geography >
        • Hazardous Environments
      • Paper 2 - Human Geography >
        • Urban Environments
        • Economic Activity and Energy
        • Fragile Environments and Climate Change
    • IGCSE Geography >
      • Population and Settlement >
        • Population >
          • Why is population growing?
          • Population density and distribution
          • Over and Under population
          • Dependent populations
          • Population policy: One Child policy China
          • HIV and AIDs
          • Migration
          • Population revision
          • Debate: Should the UN curb population growth?
        • Settlement >
          • Settlement and service provision
          • Urbanisation
      • Natural Environment >
        • Earthquakes and Volcanoes >
          • Plate tectonics
          • Case study of a volcano: Montserrat
          • Haiti Earthquake
          • Why do people live in hazardous areas?
          • Tectonics revision
          • REVISION- WHAT HAPPENS AT TECTONIC PLATES?
        • Rivers >
          • Hydrological characteristics and processes
          • River Landforms
          • Benefits and threats of rivers
          • Management of rivers: Hard and Soft engineering
          • Rivers revison
        • Coasts >
          • Coastal processes
          • Coastal management
          • Different coastal environments
          • Mangroves
          • Hurricanes- cyclone Alia, Bangladesh
          • Hurricanes- Hurricane Harvey
          • Coasts revision
          • Coastal skills
        • Weather and Climate >
          • Weather measurements
          • The Tropical Rainforest Ecosystem
          • Deserts
          • Climate and vegetation revsion
      • Economic Development >
        • 3.1 Development
        • Industry
        • Globalisation
        • Food production
        • Water
        • Tourism
        • Energy
        • Environmental risks of economic development
        • economic development revision
      • Geographical Enquiry
      • Paper 2 Geographical Skills
      • Paper 4: Fieldwork paper
      • IGCSE Revision
      • IGCSE Revision for mid course assessments April 2021
      • Paper 1: Knowledge paper revision for mocks 2022
  • HS Economics
    • IB ECONOMICS TEACHER PAGES >
      • Activity Styles
    • Year 10 >
      • 1.0 THE BASIC ECONOMIC PROBLEM
      • 2.0 HOW MARKETS WORK AND MARKET FAILURE
      • 3.0 THE INDIVIDUAL AS PRODUCER, CONSUMER AND BORROWER >
        • 3.3 Workers
        • 3.4 Firms
        • 3.5 Small firms and causes and forms of the growth of firms
        • 3.6 Economies and diseconomies of scale
        • 3.7 Firms costs, revenues and objectives
        • 3.8 Firms and Production
        • 3.9.5 Monopoly Markets
      • REVISION OF UNITS 1, 2 AND 3
      • SUMMER LEARNING
    • Year 11 >
      • 4.0 THE ROLE OF GOVERNMENT IN AN ECONOMY >
        • 4.1 Introduction to Macroeconomics
        • 4.1.1 The Role of Government
        • 4.2.1 Macroeconomic Aims of Government
        • 4.2.3 Economic Growth
        • 4.7 EMPLOYMENT AND UNEMPLOYMENT
        • 4.8 INFLATION
        • 4.4.0 FISCAL POLICY
        • 4.4.1 MONETARY POLICY
        • 4.1.2 SUPPLY-SIDE POLICIES AND MACROECONOMICS REVISION
      • 5.0 ECONOMIC DEVELOPMENT >
        • Top Trumps: Economic Development
        • 5.1 DIFFERENCES IN ECONOMIC DEVELOPMENT
        • 5.3.1 POVERTY
        • 5.3 POPULATION
      • 6.0 INTERNATIONAL ASPECTS >
        • 6.2 ​GLOBALISATION, FREE TRADE AND PROTECTION
        • 6.3 EXCHANGE RATES AND THE CURRENT ACCOUNT
      • iGCSE Economics Revision Sessions - May 23rd to June 1st
      • Revision Support
    • Year 12 >
      • 1. Introduction to Economics
      • 2. Microeconomics >
        • 2.A. COMPETITIVE MARKETS: DEMAND AND SUPPLY >
          • HL Demand FE 2022
        • 2.B.ELASTICITIES
        • 2.C.GOVERNMENT INTERVENTION >
          • INQUIRY: EVALUATE THE EFFECTIVENESS OF GOVERNMENT INTERVENTION IN ACHIEVING SDG 12: RESPONSIBLE CONSUMPTION AND PRODUCTION
          • HL 2020 Government intervention
        • 2.D.MARKET FAILURE >
          • To What Extent Does the American Health Care Market Represent a Market Failure?
        • HL: RATIONAL PRODUCER BEHAVIOR
        • 2.E.THE THEORY OF THE FIRM 1: PRODUCTION, COSTS, REVENUES, AND PROFIT HL
        • 2.F.THE THEORY OF THE FIRM II: MARKET STRUCTURES HL
        • Real World Examples: Theory of the Firm
      • 3. Macroeconomics >
        • 2A. THE LEVEL OF OVERALL ECONOMIC ACTIVITY
        • 2B. AGGREGATE DEMAND
        • 2C. AGGREGATE SUPPLY
        • THE MULTIPLIER (HL)
        • INFLATION
        • THE PHILLIPS CURVE (HL)
        • LOW UNEMPLOYMENT
        • EQUITY IN THE DISTRIBUTION OF INCOME
        • ECONOMIC GROWTH
        • OVERVIEW OF DEMAND-SIDE AND SUPPLY-SIDE POLICIES
        • FISCAL POLICY
        • MONETARY POLICY
        • SUPPLY-SIDE POLICIES
      • Exam Papers
      • IA's >
        • IA Marking Exercise
        • Economic Diagrams
      • Extended Essay in Economics
      • SUMMER LEARNING
    • Year 13 >
      • 4. International Economics >
        • 4.A.International trade
        • 4.B.Exchange rates and the balance of payments
        • 4.C.Economics integration and the terms of trade
        • 4.D.Be ambitious resources
      • 5. Development Economics >
        • Understanding Economic Development
        • Topics in Economic Development
        • Foreign sources of finance and foreign debt
        • Consequences of economic growth and the balance between markets and intervention
      • IB Economics - Exams
      • IB ECONOMICS REVISION PAGES >
        • REAL WORLD EXAMPLES
        • Give Me Fives
        • Economics Past Papers
        • Student Video Tutorials
        • Additional Revision Activities
        • 2022 MOCK EXAM
    • Digital library
    • TOK Inspired Economics Page
    • Process for Deciding Economics University Predicted Grades
  • HS History
    • What is History?
    • IBDP History >
      • Pre - IB History
      • Rationale
      • Introductory Tasks
      • Perspectives Blog
      • IB History Revision Sessions - April 6th to May 1st
      • Paper 1 - Prescribed Subject >
        • Military Leaders >
          • Genghis Khan 1200-1227 >
            • Introduction to the Mongols
            • Mongol Historiography
            • Rise to Power
            • Military Might
            • Leadership
            • Campaigns in China and Asia
            • Impact of the Mongols
            • TOK - Genghis
          • King Richard I of England 1173-1199 >
            • Medieval England
            • Richard I - Life before 1189
            • Richard I - Crusader King 1190 - 1193
            • Richard I - Military Leadership
            • Richard - Impact
            • Richard I - Reputation and Historiography
            • TOK - Richard I
          • Paper 1: Rights and Protest
          • Source Skills
      • Paper 2 - World History Topics >
        • Essay Writing Skills - Paper 2
        • Authoritarian States >
          • Theory
          • MCA Feedback and Reflection
          • Hitler >
            • Emergence and rise to power >
              • HOW MUCH HOPE WAS THERE FOR THE SURVIVAL OF THE WEIMAR REPUBLIC 1919-29?
              • HOW DID THE AIMS AND IDEOLOGY OF THE NAZI PARTY DEVELOP BETWEEN 1919-1923
              • HOW FAR DID THE CONDITIONS OF 1929-33CONTRIBUTE TO THE ESTABLISHMENT OF THE NAZI STATE?
              • WHERE DID SUPPORT FOR NATIONAL SOCIALISM COME FROM?
            • Consolidation and maintenance of power >
              • HOW DID HITLER CONSOLIDATE HIS POWER TO CREATE AN AUTHORITARIAN REGIME?
              • WHAT PART DID PERSONALITY AND PROPAGANDA PLAY IN THE CONSOLIDATION OF POWER?
              • WHAT WERE THE MAIN CHARACTERISTICS OF NATIONAL SOCIALIST GOVERNMENT?
              • WHAT WAS THE NATURE AND EXTENT OF OPPOSITION TO NAZI RULE AND HOW WAS IT DEALT WITH?
              • WHAT WAS THE IMPACT OF FOREIGN POLICY ON HITLER'S CONSOLIDATION AND MAINTENANCE OF POWER?
            • Aims and results of policies
          • Mao >
            • Emergence and Rise to Power
            • Consolidation and maintenance of power
            • Aims and results of policies
          • Castro >
            • Castro RTP
            • Castro Establisment and consolidation
            • Castro: Aims and results of policies
          • Policies In Germany and Cuba >
            • Nazi Policies - Aims and outcomes
            • Castro Policies - Aims and Outcomes
        • Independence movements 1800 - 2000 >
          • Ireland - Europe >
            • 1. The origins rise and rise of independence movements >
              • 1.a. WHAT SOCIAL AND ECONOMIC FACTORS LED TO THE DEVELOPMENT OF AN INDEPENDENCE MOVEMENT?
              • 1.b. EARLY INDEPENDENCE CAMPAIGNING - WOLFE TONE
              • 1.c. SOCIAL DIVISIONS WITHIN IRELAND
              • 1.d. ECONOMIC FACTORS
              • 1.e. WHAT POLITICAL FACTORS LED TO THE DEVELOPMENT OF AN INDEPENDENCE MOVEMENT IN IRELAND?
              • f. What external factors were important in creating an independence movement.
            • 2. Methods used and reasons for success >
              • 2. a WHAT METHODS WERE USED IN THE STRUGGLE FOR INDEPENDENCE 1867 TO 1900? >
                • 2.b.​WHY DID THE INDEPENDENCE MOVEMENT SUCCEED?
                • 2.b. WHAT WERE THE ROLES OF MICHAEL COLLINS AND EAMON DE VALERA IN THE STRUGGLE FOR INDEPENDENCE?
                • 2.c.
            • 3. Challenges faced in the first 10 years after independence; and the responses to those challenges. >
              • 3.a.
              • 3.b.
              • 3.c.
              • 3.d.
              • 3.e.
            • IRISH 'BE AMBITIOUS' RESOURCES
          • India - Asia >
            • Origin and rise of the Independence Movement >
              • 1857 and Colonial India
              • The Growth of Nationalism
              • Factors in the rise of the Independence Movement
            • Methods and success of the Independence Movement >
              • Leadership in India
              • Why did India win independence?
            • Challenges facing the newly independent state
          • Cuba - The Americas >
            • origins of Cuban Independence before 1823
      • Paper 3 - History of Europe >
        • THE FRENCH REVOLUTION 1774 TO 1815 >
          • The Enlightenment
          • The Origins of the French Revolution
          • 1789: THE END OF THE ANCIEN REGIME
          • Establishing a Constitutional Monarchy
          • Revolutionary War and overthrow of the Monarchy 1792 - 93
          • Government by Terror 1793-4
          • THERMIDORIAN REACTION AND THE DIRECTORY 1794-9
          • THE IMPACT OF THE REVOLUTION
          • NAPOLEON: CONSULATE AND EMPIRE
          • DIGITAL RESOURCES: FRENCH REVOLUTION
        • Imperial Russia 1854 - 1924 >
          • Alexander II
          • Alexander III and Nicholas I
          • 1905 - Revolution
          • Nicholas II and the impact of the First World War
          • The Revolution 1917
          • Lenin and the Soviet Union
      • Internal Assessment (IA) >
        • Formulating a Question
        • Initial Proposal
        • IA Section 1
        • IA Section 2
        • IA Section 3
        • IA Referencing
        • Marking Exercise
        • Timeline Class of 2018
      • Core >
        • Extended Essay
        • Theory of Knowledge
        • CAS
    • New IGCSE Edexcel History >
      • A1 Origins & Course of WW1
      • B2 Changes in Medicine
      • D3 Weimar & Nazi Germany
    • IGCSE Cambridge History >
      • Revision Checklists
      • REVISION Past Papers >
        • MODEL Paper 1
        • MODEL Paper 2 >
          • MODEL Paper 2: Cold War Causes
          • MODEL Paper 2: Treaties
      • Depth Study A: WW1 >
        • 1. Why was war not over by December 1914?
        • 2. Why was there stalemate on the Western Front?
        • 3. How important were other fronts?
        • 4. Why did Germany ask for an armistice in 1918?
        • WW1 EXAM QUESTIONS
      • Core Content 1: Treaties
      • Core Content 2 & 3: League 20s & 30s
      • Core Content 4 : Blame for Cold War?
      • Core Content 5: Cold War Conflicts
      • Depth Study B: Germany >
        • 1. Was the Weimar Republic doomed from start?
        • 2. Why was Hitler able to dominate Germany by 1934?
        • 3a. How effectively did the Nazis control Germany?
        • 3b. What was it like to live in Nazi Germany?
  • SOCIOLOGY HOME
    • Unit 1: Theory and Methods >
      • How do sociologists study society?
    • Unit 4: Family
    • The story of Power England
  • TEACHER PAGES
    • Mrs Bennett
    • Ms Capper
    • Mr Bish >
      • Teacher Assessment Pages - Comparative Judgements
      • WS
      • Top 10's
      • Book club
      • Profile
      • blog: How can self-directed learning be made visible?
    • Mrs Morgan >
      • Debate: Should the UN curb population growth?
      • Books
      • TV and Films
      • Travel
    • Mr Jones
    • Mr Skerry
    • Contact
  • LEADERSHIP ENRICHMENT
    • Year 9 - Leadership Enrichment >
      • Leadership Styles
      • Planning an Event - The Music Festival >
        • Decision 1 - What is our Vision?
        • Decision 2 - The Line Up
        • Decision 3 - Event Planning
        • Decision 4 - Event Organisation
        • Decision 5 - Advertising
        • Decision 6 - Final Costings
        • Decision 7 - Our Pitch
      • Review and Reflection
  • GLOBAL JUSTICE LEAGUE OF BISH
    • GLOBAL CITIZENSHIP IGCSE >
      • Theme 1: Politics and Governance
      • Theme 2 - Economic development and the environment
    • BIS Houston MUN - April 6th-8th 2022
    • 2023 ​TEXAS STATE MOCK TRIAL COMPETITION TEAM
    • ORGANISORS PAGE BISHMUN 2022
    • TED X CONFERENCE 2022
  • YEAR 9 ​ENRICHMENT: ​GENERAL ASSEMBLY: ​CLIMATE CHANGE
  • History Digital Research Library
  • New Page
  • Week 10 - Dealing with Conflict