Fiscal Policy is the useopf government spending and tax policies to
influence economic conditions, especially on a macroeconomic scale.
The policies and regulations within the fiscal policy control a multitude of
things including but not limited to economic equilibrium, inflation, and
unemployment. The government implements this policy in different steps
and stages of the economy, but usually begins with either increasing or
decreasing spending within the government to accommodate the
necessary functions for economic stability. After this step has been
overviewed and a plan has been implemented, the government then
begins to investigate taxation of the citizens. The government will decide
whether it is necessary to either lower taxes or increase taxes to meet
the needs of the economy. During the Great Recession in 2008-2009 the
government implemented fiscal policies to save the economy and find an
equilibrium. During this time the government increased their spending to
create more jobs and income for citizens that would stimulate the
economy, as well as implementing tax cuts to increase spending income
for citizens. We have most recently seen these fiscal policies and many
more during the Covid-19 pandemic. During this time the government
sent out unemployment, stimulus checks, increased tax deductions and
breaks, as well as passed grants and funding for housing and education
breaks. The government increased pay and funding for essential
workers and provided relief for small businesses through grants and
loans. Many of these fiscal policies are still being implemented and
disbursed although the pandemic occurred a few years ago, like the P-
EBT has recently been updated and begun to give families relief for food
necessities.
