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* Definition: govt. programs that help the elderly, ill, unemployed
* Cause for Entitlements: Great Depression (1929-30’s)
- ¼ of Americans unemployed
- charities weren’t enough
- FDR’s “ New Deal ” created programs to help the needy
Major Entitlement Programs 7 million - Payroll taxes from Federal Govt. Unemployment Insurance fired worker can collect benefits 51 Million - State & Federal Taxes Medicaid pays portion of medical care for low-income people 41 Million - Federal Taxes Medicare pays portion of medical care to elderly 45 million - Payroll taxes from Federal Govt. Social Security monthly stipend to elderly & disabled People Helped Source of Funding Entitlement Program & Definition
* In Sports we have different statistics that tell us how well a player or team is performing. Based upon this data, we as fans are able to judge if a player or team is excelling or struggling.
* In economics , we have statistics that tell us how well the country’s economy is performing. These statistics include: GDP, CPI, and the Unemployment rate . Based upon these statistics, the government is able to take actions ( fiscal & monetary policy ) to help keep the economy stable.
3. Unemployment Rate: measures the percentage of people who want a job, but can’t find one
Comparing & Contrasting Fiscal and Monetary Policy - Money Supply - Loans & Mortgages - Taxing & Spending - budget Keywords to Help you Remember ↑ or ↓ Interest Rate ↑ or ↓ Taxes ?Recession? ↑ or ↓ Govt. Spending Tools Used to Execute Policy The Federal Reserve aka “The Fed” President & Congress Who Controls Policy? Govt.’s money supply policies Govt.’s taxing & spending policies Short Definition Monetary Policy Fiscal Policy
Economic Cause & Effect If the Economy is in a recession Possible Government Remedies: ↑ or ↓ Taxes or ↑ or ↓ Govt. Spending or ↑ or ↓ Interest Rates