宏观经济学原理与应用（第二版）教学配套课件罗伯特.E.霍尔fiscal_policy.pdfVIP

Fiscal Policy: Taxes, Spending, and the Federal Budget Slides by: John Pamela Hall ECONOMICS: Principles and Applications 3e HALL LIEBERMAN © 2005 Thomson Business and Professional Publishing Fiscal Policy: Taxes, Spending, and The Federal Budget • Almost every year throughout 1980s, and early 1990s, a best-selling book would be published that predicted economic disaster for United States and world • During late 1990s, as federal budget picture improved, these disaster books quietly disappeared • Then, in 2002, another flip-flop – Government was again running a deficit, and more deficits were projected till the end of the 2000s and beyond • What caused these flip-flops in the government’s budget? – And why should we care? 2 Thinking About Spending, Taxes, and the Budget • In 1959, federal government’s total outlays were $92 billion – Goods and services, transfer payments, and interest on its debt • By 2003 total had grown to $2,140 billion, an increase of more than 2,200% • Consider national debt—total amount government owes to the public from past borrowing in years in which it ran a budget deficit – In 1959, national debt was $209 billion • By beginning of 2003, it had grown to $2,936 billion – Is this our evidence that debt is crushing economy? 3 Thinking About Spending, Taxes, and the Budget • From 1959 to 2003 U.S. population grew, labor force grew, and average worker became more productive – Why is that important? • Because spending and debt should be viewed in relation to income • We automatically recognize this principle when we think about an individual fami