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Issues in Economics Today
Issues in Economics Today
Robert Guell, Indiana State University

Fiscal Policy

Web-Based Issues Questions

Question 11.1

Read the following articles

http://www.brookings.edu/dybdocroot/views/articles/gale/20011008.htm

http://www.heritage.org/shorts/20011107stimulus.html

Note the differences of the writers in terms of the where they see “the biggest bang for the buck” and discuss whether a stimulus package intended to boost an economy should have a short term focus or a long term focus.

Question 11.2

Click on the following article

http://www.epinet.org/webfeatures/viewpoints/tax_cut.html

Note that this article appeared before the onset of the 2001 recession and before the 2001 tax cut was enacted. The writers had two main concerns 1) the lack of an “immediate stimulus,” and 2) the degree to which the wealthy would benefit from a tax cut. Evaluate how convincing the authors were in making their case.





McGraw-Hill/Irwin