Government

Governments’ spending, taxing and borrowing, fiscal policy has a direct impact on economic activity and growth. Looking at the past and present, econlife focuses on the role of government through fiscal policy.

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    An Optional Income Tax

    May 18, 11 • 425 Views • No Comments

    What if you could decide whether to pay an income tax? Boston University economist Laurence Kotlikoff has a plan that gives us a choice. His basic message, though, is that Congress had better start to think creatively because our current system is...  [read more]

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    Bailout Fatigue

    May 17, 11 • 304 Views • No Comments

    Yesterday, in a 94-0 vote, the U.S. Senate said it had bailout fatigue. No, they were not referring to Fannie Mae or General Motors. They meant Greece. This is the connection: By selling government securities, Greece had borrowed money to fund massive...  [read more]

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    Looking at the Debt Ceiling

    May 16, 11 • 264 Views • No Comments

    Today, at this moment, we might be hitting the debt ceiling. During the past 11 years, Congress has voted to raise the debt ceiling 10 times. In 2000, the ceiling was approximately $6 trillion; in 2011, it was just above $14 trillion. The whole story is here,...  [read more]

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    A Medicare Check-up

    May 14, 11 • 343 Views • No Comments

    We could say that Medicare is currently a bit ill and the prognosis is not good. Last year it received some “medicine” through the Affordable Health Care Act but its caretakers, the Medicare trustees, question whether the treatment will work....  [read more]

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    89.7 Sextillion Percent Inflation

    May 12, 11 • 429 Views • No Comments

    Imagine a country where supermarket employees have to raise their prices several times a day, maybe by placing one price sticker on top of the old one. Describing Brazilian inflation during the early 1990s, one woman said she raced to food markets to see if...  [read more]