Fiscal policy

Fiscal policy

In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country’s economy. The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s, when the previous laissez-faire approach to economic management became unworkable. Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorised that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity. Fiscal and monetary policy are the key strategies used by a country’s government and central bank to advance its economic objectives. The combination of these policies enables these authorities to target inflation and to increase employment. In modern economies, inflation is conventionally considered “healthy” in the range of 2%–3%. Additionally, it is designed to try to keep GDP growth at 2%–3% and the unemployment rate near the natural unemployment rate of 4%–5%. This implies that fiscal policy is used to stabilise the economy over the course of the business cycle.

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Idaho District 29 Democratic candidates Sen. James Ruchti, Mary Shea, and former Rep. Nate Roberts held a town hall in Pocatello, drawing 40-50 attendees to discuss affordability ahead of November's general election. Questions ranged from Proposition 1, the abortion-related ballot initiative, to healthcare, Medicaid, housing costs, and wages. Shea clarified the measure would not override Idaho's parental-consent laws for minors. Candidates criticized state income tax cuts, estimated at $4.5 billion over five years, arguing the revenue could have funded affordable housing and childcare instead. Roberts also called for repealing Idaho's right-to-work law to raise wages. The candidates face Republican opponents John Crowder, Dustin Manwaring, and Jennifer Miles.

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East Idaho News

Emerging News

Pocatello Democrats hold town hall on affordability, Proposition 1

Pocatello Democrats hold town hall on affordability, Proposition 1

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Sentiment