Principles of Macroeconomics ECON 401 Dr Andrew L

Principles of Macroeconomics ECON 401 Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” April 9(10), 2009 Principles of Macroeconomics, Day 6 卜安吉

Public Policies n Tax Policies – – incentives which increase or decrease the price n Spending Policies – – incentives which increase the amount of money n Spending policies right now are called “Stimulus” Packages by most governments April 9(10), 2009 Principles of Macroeconomics, Day 6 2

Public Policies n These are very simple generalizations – However they will give you some idea of why the two political parties in America do not agree, and – May help you to understand why the Republican Party is whining so much … April 9(10), 2009 Principles of Macroeconomics, Day 6 3

Public Policies n In America today, the Conservative or Republican Party (GOP) is in the minority or opposition. – They are against all taxes – For minimal government – justice system mostly, that is to support private property – Pro – Business – usually support most business organizations April 9(10), 2009 Principles of Macroeconomics, Day 6 4

Public Policies n In America today, the Liberal or Democratic Party is in the majority or in power. – They are against taxes on the middle class – For a regulatory government – helping keep the businesses from dominating consumers – Support business interests yet not big conglomerate multinationals, to some degree April 9(10), 2009 Principles of Macroeconomics, Day 6 5