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The management of the economy is a central concern of government. It is the area
The management of the economy is a central concern of government. It is the area of policy making on which governments are most frequently evaluated by their citizens. That is true not only because of the direct importance of the issue to citizens but also because of the frequent reporting of standard indicators such as the inflation rate and the level of unemployment. Even if an individual has a job and an income that keeps pace with the cost of living, he or she may believe that the Mayor is not doing a good job because of the aggregate numbers that regularly appear in the newspapers. The extent to which the performance of the economy is now laid at the feet of government, especially the Mayor, is in marked contrast to the era before the Great Depression, when the economy was not believed to be controllable by government. The Mayor clearly plays a crucial role in economic management because of their role as spokesman for government, because of the importance of the budget in controlling the economy, and because of the influence on other areas of economic policy such as taxation.
Finally, citizens have a substantial impact on the state of the economy. Many decisions on fiscal policy depend on citizens’ responding in the predicted fashion. Even major aggregates, such as economic growth, depend to a great extent on the perceptions and behaviors of citizens—citizen confidence is as good an economic indicator as many more objective ones. If citizens and businesses believe that prosperity is coming, they will be willing to invest and may make their belief a self-fulfilling prophecy. Government can do everything in its power to try to influence the behavior of citizens, but ultimately most decisions are beyond its control. Even so, the success of economic policy is a major factor in whether citizens believe that government is doing a good job.
Select a past or current economic policy in your hometown (TIF, Grants, etc) and describe it. How successful is it? What went right or wrong? How would you have handled it?
Write a 200 word (minimum) essay in APA format with at least two sources.
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