The Budget at a glance

There is an overwhelming sense that Alistair Darling's Budget has fallen short of what had to be done.

http://news.bbc.co.uk/1/hi/uk_politics/8011882.stm

BBC video - http://news.bbc.co.uk/1/hi/uk/8013738.stm

Video on Alistair Darling saying that the economy will recover - http://news.bbc.co.uk/1/hi/uk_politics/8013795.stm

Q&A: What is fiscal retrenchment?

Fiscal retrenchment is a term that you are going to hear a lot more about in the coming years. In short it means that a government has to introduce deflationary fiscal measures designed to reduce the amount of borrowing and debt that has been run up during the downturn and economic/financial crisis.

http://www.tutor2u.net/blog/index.php/economics/comments/qa-what-is-fiscal-retrenchment/#extended

Q&A - what is the acclerator effect?

This is related to Fiscal policy and the multiplier effect.
http://www.tutor2u.net/blog/index.php/economics/comments/qa-what-is-the-accelerator-effect/

Notes on the multiplier and accelerator
http://portal.kings-ely.cambs.sch.uk/Senior%20School/Departments/Economics/Pupils/Document%20Library/Year%2012%20Economics/Module%202%20-%20Macro%20Economics/OCR%20Unit%20F582%20tutor2u%20notes/Multiplier%20and%20Accelerator%20Effects.pdf

Q&A - is roadbuilding an effective way of reducing unemployment?

Tutor2u Q&A: To what extent would a major road building project by the government be an effective way for the government to tackle unemployment?
http://www.tutor2u.net/blog/index.php/economics/comments/qa-is-roadbuilding-an-effective-way-of-reducing-unemployment/#extended

Quiz - Fiscal Policy

http://www.tutor2u.net/quiz/economics/jbc_econ_fiscalpolicy_1.htm

Presentation - Fiscal policy and Aggregate Demand

http://www.tutor2u.net/economics/presentations/a2economics/macro/FiscalPolicyAggregateDemand/default.html

Presentation - government borrowing

http://www.tutor2u.net/economics/presentations/a2economics/macro/FiscalPolicyGovernmentBorrowing/default.html

Presentation - government spending

http://www.tutor2u.net/economics/presentations/a2economics/macro/Fiscal%20PolicyGovernmentSpending/default.html

The National Debt

Quirky video on the UK's National debt and whether it represents a big problem.
http://www.youtube.com/watch?v=LljmcDmirdI&feature=channel

The problems an economy might face recovering from a recession

'Economics help' brief notes.
http://www.economicshelp.org/macroeconomics/macroessays/problems-recover-recession.html

Will the USA really benefit from tax cuts?

It is interesting to see the almost unanimity across the American political spectrum about the need for tax cuts. Article looks at the case for and against the tax cuts.
http://www.economicshelp.org/2008/02/will-us-economy-really-benefit-from-tax.html

Criticism of Fiscal policy

Fiscal Policy is the use of Government spending and taxation to influence the level of economic activity. In theory, fiscal policy can be used to prevent inflation and avoid recession. But, in practise there are many limitations of using fiscal policy.
http://www.economicshelp.org/macroeconomics/fiscal-policy/fiscal_policy_criticism.html

Analysis of an increase in Government spending

Assess the impact of an increase in Government spending on education and health care.
http://www.economicshelp.org/2007/06/effect-of-higher-spending-on-education.html

Prep for Wed 4th and Friday 6th March

For Wed 4th March, read the first article from the handout - 'What might the impact of the recent increase in the UK tax burden as a % of GDP'.

For Fri 6th March - June 2006 past paper questions:
a) Explain how an increase in a government’s budget deficit might affect an
economy [10]
b) Discuss the extent to which a change in the performance of the UK economy
might cause the government’s budget deficit or surplus to change [15]

Institute for Fiscal Studies

An outline of what the Institute of Fiscal Studies (IFS) does.
http://www.ifs.org.uk/aboutIFS/what

Tax freedom day

If you paid all your tax liabilities upfront from the beginning of the year, then this is the date (on average) that you would no longer pay any tax.
http://www.adamsmith.org/blog/misc/on-the-ninth-day-of-christmas...-200901022622/

We should have a simpler tax system

Adam Smith Institute article on simplifying the UK tax system.
http://www.adamsmith.org/economy/

What Alistair Darling should have done

Interesting article from the Adam Smith Institute which reviews what Alistair Darling proposed in the way of tax cuts to help keep Britain out of the recession. It also suggests what he maybe should have done instead.
http://www.adamsmith.org/think-piece/economy/what-alistair-darling-should-have-done-200811262497/

Recession hits the government's tax revenue

The recession has hit the government's coffers hard, figures showing that their take from taxes has fallen by £7bn.
http://news.bbc.co.uk/1/hi/uk_politics/7900483.stm

National Debt set to top £2 trillion

The national debt is likely to be catapulted through the £2 trillion mark following the Treasury's decision to stand behind Britain's troubled banks' debts.
http://www.telegraph.co.uk/finance/financetopics/recession/4700055/UK-national-debt-set-to-surpass-2-trillion.html