FISCAL POLICY IMPACTS
Weekly Learning Outcomes
This week students will
- Interpret fiscal policy by examining real-life examples.
- Assess the U.S. national debt and its impacts on the overall economy.
- Examine the causes of the Great Recession of 2008-2009 and any future implications.
Introduction
In this week, you will focus on a basic understanding of fiscal policies as you work through Chapters 9, 10, 11
and 12 of your Macroeconomics: Private and Public Choice textbook. You will examine real-life examples of
fiscal policies and the impact on the overall economy. Additionally, you will examine the Great Recession of
2008-2009 in detail, understanding the causes and how governmental policies and intervention impacted this
downfall in the economy. Finally, you will debate the importance of the U.S. national debt on the overall
economy.
Weekly Learning Outcomes
This week students will
- Interpret fiscal policy by examining real-life examples.
- Assess the U.S. national debt and its impacts on the overall economy.
- Examine the causes of the Great Recession of 2008-2009 and any future implications.
Introduction
In this week, you will focus on a basic understanding of fiscal policies as you work through Chapters 9, 10, 11
and 12 of your Macroeconomics: Private and Public Choice textbook. You will examine real-life examples of
fiscal policies and the impact on the overall economy. Additionally, you will examine the Great Recession of
2008-2009 in detail, understanding the causes and how governmental policies and intervention impacted this
downfall in the economy. Finally, you will debate the importance of the U.S. national debt on the overall
economy
Required Resources
Texts
Gwartney, J. A., Stroup, R. L., Sobel, R. L., & Macpherson, D. A. (2018). Macroeconomics: Private and public
choice (16th ed.). Retrieved from https://www.cengage.com
• Chapter 9: An Introduction to Basic Macroeconomic Markets
• Chapter 10: Dynamic Change, Economic Fluctuations, and the AD-AS Model
• Chapter 11: Fiscal Policy: the Keynesian View and the Historical Development of
Macroeconomics
• Chapter 12: Fiscal Policy, Incentives, and Secondary Effects
Tamny, J. (2015). Popular economics: What the Rolling Stones, Downton Abbey, and LeBron James can teach
you about economics. Retrieved from https://www.redshelf.com
• Chapter 4: It’s the Spending, Stupid: Budget Deficits Really Don’t Matter
• Chapter 22: If They Tell You They Predicted the “Financial Crisis,” They’re Lying
Recommended Resources
Text
Tamny, J. (2015). Popular economics: What the Rolling Stones, Downton Abbey, and LeBron James can teach
you about economics. Retrieved from https://www.redshelf.com
• These chapters provide John Tamny’s perspective on a specific fiscal policy: taxes. The author
and some other economists are not in favor of higher taxes. He gives the rationale for the
government to implement a fiscal policy of lower taxes. This may give you a different
perspective and add to your knowledge in answering the Fiscal Policy discussion forum
question as well as give more information in working through The Great Recession of 2008-
2009: Causes and Responses assignment this week.
o Chapter 1: Taxes are Nothing More than a Price Placed on Work
o Chapter 2: When We Tax Corporations, We Rob Them of Their Future
o Chapter 10: Conclusion: Bulldoze the U.S. Tax Code
Colvin, G. (2018, October 1). How to spot the next financial crisis. Fortune, 9–10. Retrieved from
http://fortune.com/
• The full-text version of this article is available through the EBSCOhost database in the
University of Arizona Global Campus Library. This article reflects on some of the causes of the
Great Recession. More importantly, the author takes you into the future to discuss when and if
another big recession will occur and what some of the triggers might look like. This article may
assist you with your The Great Recession of 2008-2009: Causes and Responses assignment
this week
Committee for a Responsible Federal Budget. (2018, December 13). The deficit has never been this high when
the economy was this strong [Blog post]. Retrieved from http://www.crfb.org/blogs/deficit-has-neverbeen-high-when-economy-was-strong
• This blog post discusses the current debt high level in relation to business cycles. The debt is
climbing in a very healthy economy which is unusual as debt usually grows during down
economies and recessions. This is an interesting perspective and may assist you with your
Government Budget Deficits (Debate) discussion forum this week.
Accessibility Statement does not exist.
Privacy Policy
Committee for Economic Development. (2018, April 4). What is the ‘national debt’ and why does it matter?
[Report]. Retrieved from https://www.ced.org/reports/what-is-the-national-debt-and-why-does-it-matter
• This report discusses the current debt and clarifies commonly used terms such as “deficit” and
“debt.” The report is concise and may assist you with your Government Budget Deficits (Debate)
discussion forum this week.
Accessibility Statement does not exist.
Privacy Policy
Davidson, J. (2016, February 11). How much does America’s huge national debt actually matter? Time.
Retrieved from http://time.com/4214269/us-national-debt/
• This article was written in 2016 and gives you the perspective on the debt at that time. The debt
has continued to grow larger since that time. The article makes some prediction for future years.
The article may assist you with your Government Budget Deficits (Debate) discussion forum this
week.
Accessibility Statement does not exist.
Privacy Policy
Holland, J., Leamer, E., & Rivlin, A. (2018, July). Perspectives on U.S. fiscal policy. Business Economics 53(3),
124–133. https://doi.org/10.1057/s11369-018-0083-3
• The full-text version of this article is available through the Business Insights: Global database in
the University of Arizona Global Campus Library. This detailed article discusses fiscal policies
and their impact on the national debt. The article covers entitlements, healthcare, and the global
bond market. The author artfully weaves these topics in to logically explain the impact of the
growing national debt. This article may assist you with your Fiscal Policy and Government
Budget Deficits (Debate) discussion forums this week.
Ponnuru, R. (2018, September 10). Rethinking the recession: Blame the Fed’s monetary policy. National
Review, 70, 26–28. Retrieved from https://www.nationalreview.com/
• The full-text version of this article is available through the EBSCOhost database in the
University of Arizona Global Campus Library. This article evaluates the underlying causes of the
Great Recession and looks squarely at the Federal Reserve Bank. This author in part aligns
with our textbook but still offers a slightly different perspective. This article may assist you with
your The Great Recession of 2008-2009: Causes and Responses assignment this week.
Tooze, A. (2018, September). The forgotten history of the financial crisis: What the world should have learned
in 2008. Foreign Affairs, 97, 199–210. Retrieved from https://www.foreignaffairs.com/
• The full-text version of this article is available through the EBSCOhost database in the
University of Arizona Global Campus Library. This article provides some valuable insights into
the Great Recession and the lessons to be learned. This article discusses various countries and
markets around the world to give you a more global view of the crisis. This article will assist you
with your The Great Recession of 2008-2009: Causes and Responses assignment this week.
Wallison, P. J. (2009, June 1). Cause and effect: Government policies and the financial crisis. Retrieved from
https://www.researchgate.net/publication/238401801_Cause_and_Effect_Government_Policies_and_th
e_Financial_Crisis
• This article provides information about the causes of the Great Recession and how government
intervention played a strong role in the housing crises and the eventual recession. This article
may assist you with your The Great Recession of 2008-2009: Causes and Responses
assignment this week.
Accessibility Statement does not exist.
Privacy Policy
CNBC International. (2018, July 26). Does U.S. debt matter? | CNBC Explains [Video file]. Retrieved from
https://youtu.be/So2OQW6gR6I
• This short video is narrated by CNBC’s Elizabeth Schulze. She discusses the current U.S.
government debt of $21 trillion and the economic impacts. She tackles the question of “does this
matter?” This video may assist you with your Government Budget Deficits (Debate) discussion
this week. This video has closed captioning and a transcript.
Accessibility Statement
Privacy Policy
Marginal Revolution University. (2016, August 9). The Great Recession [Video file]. Retrieved from
https://youtu.be/dI6HNi5I8d4
• This video provides a clear and concise explanation as to how the financial intermediates failed
and how this led to the Great Recession. The video presents facts and no political viewpoints.
This video may assist you with your The Great Recession of 2008-2009: Causes and
Responses assignment this week. This video has closed captioning and a transcript.
Accessibility Statement
Privacy Policy
PragerU. (2014, September 29). How to solve America’s spending problem [Video file]. Retrieved from
https://www.prageru.com/video/how-to-solve-americas-spending-problem/
• This video provides information about the national debt components and suggests ways to
reduce the debt. The video will give you one side of the debate and a conservative view on how
the debt could be reduced. This video may assist you with your Government Budget Deficits
(Debate) discussion forum this week. This video has closed captioning and a transcript.
Accessibility Statement does not exist.
Privacy Policy
PragerU. (2015, June 21). Should governments bail out big banks? [Video file]. Retrieved from
https://www.prageru.com/video/should-government-bail-out-big-banks/
• This video provides a fascinating view on some causes of the Great Recession. This economist
debates that deregulation was not the cause, but that bank dependences on government was a
major factor. This video adds to the debate and may give you another perspective to assist with
your The Great Recession of 2008-2009: Causes and Responses assignment this week. This
video has closed captioning and a transcript.
Accessibility Statement does not exist.
Discussion Forums
Fiscal Policy [WLO: 1] [CLOs: 1, 2, 3]. 1st Post Due by Day 3. Prior to beginning work on this discussion, • Read Chapters 9, 11 and 12 of Macroeconomics: Private and Public Choice. There are two parts to this discussion.
Part 1 In your own words define and explain fiscal policy. List the pros and cons for the fiscal policy you selected. Include supply-side economics in your explanation. As you think through your answer, remember the government may exercise expansionary or restrictive fiscal policy. Part 2 Research one specific real-life example of a fiscal policy and explain its overall impact on the economy. In your example, discuss any political influences. Note: when possible, select a different example than those already posted by a fellow classmate. Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least two scholarly and/or credible resources in addition to the text.
Guided Response: Respond to at least two of your fellow students’ and to your instructor’s posts in a substantive manner and provide information or concepts that they may not have considered. Each response should have a minimum of 100 words. Support your position by using information from the week’s readings. You are encouraged to post your required replies earlier in the week to promote more meaningful and interactive discourse in this discussion forum. Continue to monitor the discussion forum until Day 7 and respond with robust dialogue to anyone who replies to your initial post.
- Government Budget Deficits (Debate) [WLO: 2] [CLOs: 1, 2]. 1st Post Due by Day 3. Prior to beginning work on this discussion, • Read Chapter 11 of Macroeconomics: Private and Public Choice. • Read Chapter 4 of Popular Economics: What the Rolling Stones, Downton Abbey, and LeBron James Can Teach You About Economics. Let’s cordially debate a controversial and often misunderstood macroeconomic topic. Our huge U.S. government debt (see the latest debt being counted at U.S. Debt Clock) continues to grow and is constantly in the news. For your initial post address the following: Is the large and increasing national debt an issue we should be concerned about? How does John Tamny view the national debt? What is your conclusion? Is this a problem, why or why not? Be sure to support your conclusion with facts Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly and/or credible resource in addition to the course text books. Guided Response: In your response, take the opposing view of the original post regarding national debt. Respond to at least two of your fellow students’ and to your instructor’s posts in a substantive manner and provide information or concepts that they may not have considered. Each response should have a minimum of 100 words. Support your opposing view by using information from the week’s readings. You are encouraged to post your required replies earlier in the week to promote more meaningful and interactive discourse in this discussion forum. Continue to monitor the discussion forum until Day 7 and respond with robust dialogue to anyone who replies to your initial post.
The Great Recession of 2008-2009: Causes and Responses [WLOs: 1, 3] [CLOs: 1, 2, 5]. Due by Day 7. Prior to beginning work on this assignment, • Read Chapter 10 of Macroeconomics: Private and Public Choice. • Read “Special Topic 5: The Great Recession of 2008-2009: Causes and Response” in Macroeconomics: Private and Public Choice (pages 445 to 459). For this assignment, you are required to upload your PowerPoint deck with speaker notes to your ePortfolio in addition to Waypoint. You will provide the link to your video recorded presentation in Folio. You will be provided with additional information on how to submit your assignment in the online classroom. Learn more about Folio, UAGC’s ePortfolio tool, by viewing the Folio Quick Start Guide. For this assignment, assume the role of an economic advisor to Steve Forbes. Using this week’s required resources as well as at least two additional credible resources, prepare an 8-10 slide audio presentation highlighting the causes and responses to the Great Recession. To communicate with Mr. Forbes, you will submit an audio PowerPoint with speaker notes that is 8-10 slides. Specific questions to consider in your presentation: • What caused to the Great Recession of 2008-2009? Address any monetary and fiscal policies that played a role before, during, and after the recession. • Has the crisis changed the structure of the U.S. economy? • Could a similar recession happen in the future, why or why not? Provide supporting facts for your opinions. • What economic advice would you offer to steer the economy away from such a deep and long recession? In this presentation, • Hypothesize two to three causes of the Great Recession. • Analyze the underlining fiscal and monetary policies leading up to, during, and after the Great Recession.
Conclude on any changes in the U.S. economy from the Great Recession as well as any future recession possibilities of this magnitude. • Propose a minimum of three economic policies and actions to avoid future recessions. The Great Recession of 2008-2009: Causes and Responses recorded video presentation • Must be eight to ten slides in length (not including title and references slide) and formatted according to APA Style as outlined in the Writing Center’s How to Make a PowerPoint Presentation resource. You need to include speaker notes for each task on the slide. Review the Add Speaker Notes to Your Slides resource for support. • Must include a separate title slide with the following: o Title of paper in bold font Space should appear between the title and the rest of the information on the title page. o Student’s name o Name of institution (University of Arizona Global Campus) o Course name and number o Instructor’s name o Due date • Must use at least two credible sources in addition to the course text. o The Scholarly, Peer-Reviewed, and Other Credible Sources table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
