POLSC232: American Government

6.2: Economic Policy

• Economic policy refers to the actions that governments take in order to influence the economy. In recent years, credit, mortgage, and regulatory policies have contributed to an economic crisis in the United States. Responding to the economic crisis, the government has become more involved in managing the economy. Monetary policy is mainly determined by the Federal Reserve Board. Fiscal policy is mainly made by the President's economic advisors and Congress.
  

• 6.2.1: Theories of Economic Policy

  • Theories of US Economic Policy URL

    Read this article. Differences of opinion on how government power should be used are usually based on competing philosophies about how much government should be involved in regulating the economy.
    

• 6.2.2: The Federal Budget Process

  • The Regents of the University of California: "The Budget" Page

    Watch this presentation to learn more about the budgetary process in American government. Deciding the federal budget is a complicated and often contentious process involving the presidency and Congress.
    

  • Jessica Tollestrup's "The Congressional Appropriations Process: An Introduction" URL

    Read this report, which examines the roles of Congress and the President in developing the yearly federal budget.
    

  • Khan Academy: "Government's Financial Condition" and "Deficit and Debt Ceiling" Page

    Watch the first video, which discusses the difference between US debt and operating costs and how the government's large financial obligations (popularly referred to as "entitlement spending") can create burgeoning deficits. Then watch the second video, which explains the basics of the federal deficit, debt, and the debt ceiling.
    

• Checkpoint

  • 6.2 Checkpoint Quiz

    Answer these ungraded questions to see how well you have understood the course material in this section.