I will need my initial discussion done first and then will need two of my classmate responses done. I have included the rubric for the discussion. I also have included the SIX DEBATES right before the classmate responses needed.
Throughout this course, you have learned about economic models and principles and how they apply to the macroeconomic issues a country faces. Take this time to share what you have learned.
In your initial post, choose one of the six debates of macroeconomic policy discussed in the textbook. Explain why this macroeconomic issue is relevant to you. Support your choice with economic concepts you have learned during the course.
For your response posts, comment on the macroeconomic debates your peers chose. Provide examples from current economic news about the macroeconomic policy debate, and comment on the nature and tenor of the discourse surrounding the different debates.
To complete this assignment, review the Module Eight Discussion Guidelines and Rubric.
-Should the Tax laws Be Reformed to Encourage Saving?
-Should the Government Balance Its Budget?
-Should the Central Bank Aim for Zero Inflation?
-Should Monetary Policy Be Made by Rule Rather Than by Discretion?
-Should the Government Fight Recessions with Spending Hikes Rather Than Tax Cuts?
-Should Monetary and Fiscal Policymakers Try to Stabilize the Economy?
My 1st classmate response needed.
8-2 Discussion
Alicia Medina posted Feb 25, 2021 6:29 PM
Hello Class!
The debate I chose was ” Should the Government Balance Its Budget?” In my opinion, yes it should be. The U.S. federal government is far more indebted today than it was four decades ago. In 1980, the federal debt was billion; in 2018, it was trillion. If we divide todays debt by the size of the population, we learn that each persons share of the government debt is about (Mankiw, 2021). All this debt is burdening the future generations of Americans, including our children and grandchildren. This would affect not only my family but every other family in America. Government needs to redirect funds into the right departments like health care or social security and not to unnecessary ones like military weapons. If the U.S. keeps borrowing only to pay interest and old debt, it’s not fixing anything, it is just making the hole deeper. We would then run into problems like reduction in labor productivity, wages, and the economys production of goods and services. It is about finding that balance and maintaining it. It is something that wouldn’t happen over night, it may take many years to see a difference. Thank you all and good luck!
Alicia
References
Mankiw, N. G. (2021). Principles of Economics. Boston: Cengage Learning.
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My 2nd response needed
Macroeconomics debate
Daniel Winter posted Feb 25, 2021 9:40 AM
For this weeks discussion board post, I selected the macroeconomics debate “Should the government fight recessions with spending hikes rather than tax cuts?” One of the main contributors to a worsening economy during a recession is firms that are unable to sell their products or services. This leads to the reduction of production and employment. Both of these reductions will impact the government. One of the first things that the government will do in this situation is reduce the interest rates with increases the money supply. This is done to help business’ be able to afford expansion or improvements, thus creating more jobs. Another thing that the government will do in this situation is to create projects that require spending. The government will do this to try to create an environment where there will be more spending and actually will help stimulate the economy. It is believed by some that going with this option will help the economy, rather then just cutting taxes. One argument to this is that cutting taxes is actually better then coming out with this type of stimulus package. “At the same time that tax cuts increase aggregate demand, they can also increase aggregate supply. When the government reduces marginal tax rates, workers keep a higher fraction of any income they earn. As a result, the unemployed have a greater incentive to search for jobs, and the employed have a greater incentive to work longer hours. Increased aggregate supply, along with the increased aggregate demand, means that the production of goods and services can expand without putting upward pressure on the rate of inflation.” (Mankiw) It is hard to really be able to tell if tax cuts are the better option or if increasing in spending is the better option. As the text book mentioned, you are only able to take one run at a plan. Comparing 2 different economic recessions is impossible since they occurred at two different times in history and there were different variables. What worked in 2008 might not work today if we were to have a recession.
Personally, I found this to be an interesting debate. I did not know or understand the effect that a stimulus package could have on the economy. I find it very interesting how it seems that everything in the economy and with macroeconomics is connected. Taking this class that is one of the biggest things that I learned. It is very much a balance and relies heavily on cause and effect. When one part of it is effected, it effects the whole economy. When one of those areas gets out of balance it can throw off the entire economy and in the worst case, lead to a recession.
Mankiw, N. G. (2021). Principles of Economics. Boston: Cengage Learning.
