Question

For Milestone Two, you will research government fiscal policies as they relate to the 1950's and present the information in 3–5 new slides for your presentation. Be sure to read the Milestone Two Guidelines and Rubric to ensure you are covering the critical elements of this assignment.

Examine the fiscal policies in place at the start of your specific time period in relation to their effects on macroeconomic issues. For instance, consider level of government spending, taxation, subsidies, unemployment benefits, and so on.

Analyze new fiscal policy actions undertaken by the U.S. government throughout the time period by describing their intended effects, using macroeconomic principles to explain the actions.

Explain the impact of the new fiscal policy actions on individuals and businesses within the economy by integrating the macroeconomic data and

Answer 1

The World War II had devastating effects on the United States Economy and a chance of the its revival was a distant thought until the 1950’s economic boom changed the whole scenario for United States. The 1950’s are considered as the days of prosperity, economic development and the stature of United States as a fast-developing economy. After the World War II , there was a lot of confusion among the political and economic thinkers with regards to the role that the fiscal policy has to play in the revival of the US economy, During the 1950’s some of the significant decisions were taken which evolved the while US economy from the clutches of non-performance to hyper performing economy.

One of the critical economic changes that had changed the course of the US economy was the Federal Tax policy. Taxation in the days of 1950 was not wholly organized and there were several questions raised on the tax imposition. The cyclical adjustment receipts were used to measure the actions that were termed as discretionary and so that the policy implementation can be done as the policy implementors had designed the policy. A comprehensive and progressive tax system which included a sustainable rise in the social security taxes were implemented. Gross National Product of those years shows the responsiveness of the tax system as positive, as it rose unexpectedly. The taxes that were levied on the masses during the war of the preceding years, were abolished. The Government ensured that that the taxation hence forth was simulative in nature, rather than being restrictive and oppressive. The high rise in employment during the 1950’s marked a sustainable and huge increase in the income of the Government through the efficient taxation system.

  The taxation policy of the Government was well followed up with a very efficiently executed expenditure policy. The fiscal actions during the 1950’s was simulated to the demands in the market and the supply which could be easily achievable without depending in imports. The Government has adopted the policy wherein in was focusing strictly within the boundaries of the nation and how he all-round development of the country would be achieved. The fiscal policies were kept in simulation with the employment generation during the 1950’s so that the market could achieve a sustainable growth.

  The new macroeconomic policies of the US Government during the late 1950’s was an impediment of the well-articulated fiscal policies of the Government from the late 1940’s with the employment Act coming in to force. The US law makers gave specific importance to the overall nature of demand in the economy and hence brought about some of the key macroeconomic policies like the Budget constraint, the employment complacent supply policy. Etc. These policies resulted in the number of employments to rise in the economy. Specific importance was given to produce quality products in the market. This led to the US markets now being flooded with the local made products. Since the employment act ensured a sustainable income to the people, the demand in the market was very high. This high demand resulted in to a spurious rise in the production machinery. The rise in the production brought about more income for the producers and the US economy blossomed to a remarkable feat. The inflation rates were minimal the US economy registered amount 37% economic growth during the 1950’s. This high rate of economic growth became the foundation of the fastest developing economy in the world.