The Presidents Dilemma

policies-http://www.budget.gov.au/2011-12/content/at_a_glance/html/at_a_glance.htm

federal budget diagram- http://www.whitehouse.gov/omb/budget

How can we as the Special Task Force of the Council of Economic Advisors create an economic policy so that we can ease the economic crisis while possibly raise the president’s current approval rating without increasing the already-too-high national debt.

What we DO know:

1. (oil supply shocks) + (rise in oil prices) → economic crisis

2. High Level of Unemployment at 12.5% (middle managers are losing jobs at

increasing rates)

3. homelessness is rising in urban areas

4. High Rate of Inflation at 9% annually

5. Dramatic slowing of economic growth (in the past two quarters)

6. GDP has fallen by 13%

7. Businesses are contracting

8. Policy cannot add debt.

9. Find out if the Policy will be acceptable.

10. We need to develop an economic policy that will ease the crisis.

11. The president is being criticized

12. Turn in a written summary

What we DON’T know:

1. Where the long-run aggregate supply (LRAS)

2. Who is the president?

3. What is a supply shop?

4. How bad is the crisis?

5. What is inflation?

6. What is economic growth?

7. Why is there high unemployment?

8. What type of unemployment

9. What is a middle manager?

10. What does businesses contracting” mean?

11. Is unemployment high enough to be a problem

12. what causes the oil prices

13. How can we increase the supply of oil?

14. What can governments do the help with the crisis?

15. When is the election?

16. Why did high oil prices cause the crisis?

17. How long has the crisis been going?

18. What is leading economic indicators

19. how has situations like this

20. Have they been through this before?

21. How the current government spends.

22. How does our current unemployment compares to leading economic

indicators in the past

23. How does our current inflation compares to leading economicindicators in

the past

24. How does our current economy compares to leading economic indicators in

the past

25. How much is the national debt.

26. Whether or not citizens are Republican or Democrats

27. How many people are in each age group; senior, , young adults,

28. The core beliefs of both political parties.

29. Poverty Rate

30. What exactly will cause an increase in debt

31. What is the Council of Economic Advisors.

32. President’s political affiliation and beliefs.

Office of the Special Task Force

of the Council Economic Advisers

TO: President of the United States

FROM: Special Task Force of the Council of Economic Advisors

RE: RE: Policy Recommendations for Current Economic Crisis

We analyzed the rates for the unemployment, inflation, and economic growth

statistics and and here is what we think for the current situation:

There are certain patterns in the data, such as the decline in real GDP. In

1946 there has been a similar fall of 11%, though in the next 4 years, it has

a positive rise of 8%.

Currently, the public debt of 14,000 trillion dollars is more or less

proportional to the nominal GDP of 14,657 trillion dollars. There have been

similar times in the past, such as in 1944 and in 1946.

Unemployment rates has not been the highest in our history-- take not of

1942, of 10.90%. However, in the following 42 years, inflation has

decreased to 1.70 %.

fiscal

Income tax

-finding range ‘who’ to tax

demerit goods

-find amount that would change

allocate

pension / amount of money that have

joe- mortgage payment..

use demerit good tax’s to

moratorium debt

DIVIDING UP WORK--

Terence-demerit goods

-current tax rates in demerit goods

-increase by how much? / what percent?

- how many people are employed in demerit goods companies

Paul -allocation

-which to lower portion of… how much will that generate money?

Tyler-one year free mortgage-- what is it? why is it beneficial?  

-who to tax

How much do we get form the tax

Tomoyo-disadvan. and adman. of hybrid

-how much does it cost to make hybrid vs. normal

-how many money to offer to firms? might after to offer 1 mil, or more..

- how much rebate money to offer to consumers?

ALSO: How to spend? Other than Moratorium, how to help unemployment?

Offering companies subsidies for providing long term jobs or training for displaced

workers?

PAUL RYUGOVERNMENT BUDGET RE-ALLOCATION

*(copy from Australian policy) $36 billion in investment in roads, rail and ports,

including $1 billion in funding for the duplication of the Pacific Highway

For the Silver Cougars- Lower health insurance for the Medicaid (the United States

health program for people and families with low incomes and resources) and the

senior citizens (age range: over 55).

Reason- health is the number one concern for the old people.

For the low income workers or unemployed workers- The government should put

more effort in improving the social security and cut the budget on National

Defense.

By how much- now it’s 19.30%, cut it by 1.30% (keep it as a minimum)

Wouldn’t it be dangerous?

- U.S. is one of the most powerful and international country in the

world that the other countries cannot give up on the U.S. even if a war or

terror occur suddenly.

TERENCETax on Demerit Goods

Gambling

US makes 92.7 Billion on Gambling Taxes as of 2007.

(http://en.wikipedia.org/wiki/Gambling_in_the_United_States)

http://www.americangaming.org/Industry/factsheets/general_info_detail.cfv?id=28

According to forbes, Gambling costs 40 Billion dollars in loss of money across the

US.

Nevada Graduated tax rate with a maximum tax of 6.75% on gross gaming

revenue; additional fees and levies may be imposed by counties, municipalities

and the state, adding approximately 1% to the tax burden. In short, Nevada

(Biggest Gambling State), taxes 6.75% on gamblers.

Gross casino gaming revenue: $10.40 billion

Gaming tax revenue:$835.42 million

Number of operating casinos: 256 (FY 2010)

Casino employees:175,024

Supposedly Just over a Million workers in casinos.

Smoking

Cigarette Taxes in the United States: http://www.ncsl.org/default.aspx?

tabid=14349

How much does the Us make off of Cigarette Tax?

How many people work in the tobacco industry?

Supposedly 660,000 at the time of this article.

Alcohol Tax

Alcohol Tax Rates in the US

How much does the US make on Alcohol Taxes?

Around 9 billion dollars

More tax information on demerit goods (only numbers)

TAKAKIincome tax.. how to define "wealthy" and how much tax/ what percent

In 2006, the top 400 averaged an astounding $263 million each in income. These

400 financially fortunate paid, after loopholes, just 17.2% of their incomes in federal

tax.

us tax

The current rate: just 15%.

http://dissentingdemocrat.wordpress.com/2010/04/10/why-should-we-tax-the-rich-

because-they-have-the-money-or-score-ultrarich-110-the-people-0/

The Obama White House, for instance, wants to up the top income tax rate on the

wealthy, but just to the 39.6% rate in effect before the George W. Bush tax cuts. If

the top U.S. tax rate does rise to 39.6%, America’s rich would be paying taxes at

less than half the rate they faced in the 1950s under President Dwight D.

Eisenhower, a Republican.

http://www.maxi-pedia.com/2010+federal+tax+rates+tables

Use this 2010 tax table to figure out your tax if you are filing as single.

10% on income between $0 and $8,375

15% on the income between $8,375 and $34,000; plus $837.50

25% on the income between $34,000 and $82,400; plus $4,681.25

28% on the income between $82,400 and $171,850; plus $16,781.25

33% on the income between $171,850 and $373,650; plus $41,827.25

35% on the income over $373,650 ->; plus$108,421.25

http://en.wikipedia.org/wiki/Taxation_history_of_the_United_States

http://en.wikipedia.org/wiki/Taxation_history_of_the_United_States

Great depression--increased to 63% during the Great Depression and steadily increased.

During World War II, Congress introduced payroll withholding and quarterly tax payments, Franklin D. Roosevelt tried to impose a 100% tax on all incomes over $25,000[citation needed] to help with the war effort. For tax years 1944 through 1951, the highest marginal tax rate for individuals was

91%, increasing to 92% for 1952 and 1953, and reverting to 91% for tax years 1954 through 1963

TOMOYO

(on slides)

A 2007 study by the non-profit Electric Power Research Institute (EPRI) calculated

that powering a plug-in hybrid electric vehicle (PHEV) would cost the equivalent of

roughly 75 cents per gallon of gasoline—a price not seen at the pump for 30 years.

Regarding environmental impact, charging up your car with electricity from the grid

also wins handily over filling up at the gas station. In the most comprehensive

PHEV study to date, released in 2007 by EPRI and the non-profit Natural

Resources Defense Council (NRDC), results predict that all greenhouse gases will

be reduced as PHEVs begin to penetrate the car market. Estimated cumulative

greenhouse gas reductions from 2010 to 2050, depending upon how fast PHEVs

take hold, range from 3.4 to 10.3 billion tons.

Inflation Supply side Policies

Henry J. Car

Unemployment

Unemployment benefits

Where does the money come from?

increase tax on gambling, cigarettes, and alcohol

real GDP drop