Answered

IDNLearn.com: Where your questions meet expert answers and community support. Our experts are ready to provide in-depth answers and practical solutions to any questions you may have.

The economy of the United States fluctuates over time and our government sometimes tends to alter its goals, especially during election cycles. As you have observed, what are the most significant changes in our economy or in our government, and how has your own life been affected by those changes? Be sure to think about past experiences, and use the past tense in yoru response. Answer below in essay format. Your response should be at least the rest of this page, but may not be longer than 2 pages.

Sagot :

10194241idn

Answer:

The U.S. government influences economic growth and stability through the use of fiscal policy (manipulating tax rates and spending programs) and monetary policy (manipulating the amount of money in circulation). ... When the government raises taxes, money moves out of private hands and into government coffers.

Explanation: This hotly contested policy response to a universal threat is no surprise to political economists. It happens all the time. For example, just about every economist believes that small countries would be better off if they removed all barriers to trade. Yet unilateral free trade is practically unheard of, and no country in the world today pursues it. Why not? More generally, why do governments have so much trouble getting economic policies right? Why do the advice of independent observers, analysts, and scholars go so often unheeded?

Politics is the usual answer, and the answer is usually right. But that is too vague—like saying that some countries are rich and others poor due to economics. Exactly how does politics keep governments from making better policy, even in the face of imminent crises? What does that tell us about how economic policy can and should be made?

Political economy is about how politics affects the economy and the economy affects politics (see box). Governments try to pump up the economy before elections so that so-called political business cycles create ebbs and flows of economic activity around elections. By the same token, economic conditions have a powerful impact on elections. Political economists have uncovered the simple (perhaps disturbing) fact that the rates of economic growth and inflation are all the information we need to predict quite accurately the results of the past 100 years of US presidential elections (see, for example, Fair 2018). So why don’t elections work to push politicians to choose the best policies?

We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Thank you for choosing IDNLearn.com. We’re dedicated to providing clear answers, so visit us again for more solutions.