Here are some news stories my economics class viewed today and discussed:
Lots of different opinions. I was recently accused of being a “New Deal Denier” by another blogger. There is no evidence agreed on involving anything close to consensus from economists or historians on the success or failure of the New Deal. It really seems to come down to one’s political view point.
Have to remove that from the classroom to get a real sense of it.
So instead of debating the issue, I had my economics class came up with an alternative, and they did, one that is interesting. Say the government created a 2-3 month tax holiday? (They borrowed the idea from a U.S. Congressman.)
According to the population clock at the U.S. Census Bureau there are about 306,000,000 people in the United States. We could not find how many working American’s there are. I’m sure the data is there.
We did find some other data:
Of the population, workers pay $101.6 billion per month in personal income tax and $65.6 billion per month in FICA tax. That’s $167 billion per month, times three months is $501 billion dollars. Consumers will hopefully spend more. We said “hopefully” as no one really knows what will happen with the current stimulus bill, thus ours was hypothetical as well.
By taking a tax holiday this money is in consumer’s pockets almost immediately. Combine this with some kind of stimulus package (that can only make an impact slowly) to create jobs seemed like the best course of action according to my 16 and 17 yr old students.
Now, I’m not an economist, I only play one Monday through Friday, but I am a thinker, as are my students. For me, I would much rather follow my student’s plan than the one Congress has passed.