Question: comment on the macroeconomic debates your peers chose. Provide examples from current economic news about the macroeconomic policy debate, and comment on the nature and
comment on the macroeconomic debates your peers chose. Provide examples from current economic news about the macroeconomic policy debate, and comment on the nature and tenor of the discourse surrounding the different debates.The debate I chose is whether the government should fight recessions with tax cuts. Growing up, I witnessed my parents navigate the Great Recession after my father was laid off; I didn't fully understand what was occurring. As an adult, I have seen politicians promise to help the economy but enact temporary solutions. Based on the textbook, "Economists utilized a conventional macroeconomic model to determine federal spending is more potent than tax cuts with results of GDP increases by $ 0.99 from tax cuts and $1.59 from government spending"(Mankiw, 2021). To counteract the recession, policymakers used few tax cuts and increased federal spending on shovel-ready projects, federal aid to state and local governments, and increased payments to the unemployment insurance system. While these actions were effective, they created problems for the future. The increase in government spending and borrowing required to fund the expenditure will result in higher taxes in the future. "Consumers will save to account for the increase in taxes, and businesses will reduce expectations of
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