Fiscal policy explains how the government uses spending and taxation to influence the economy through the federal budget. You’ll learn the two main fiscal policy tools, how expansionary and contractionary policy work, and why government spending or tax cuts can affect jobs, prices, investments, inflation, and debt. I walk through the multiplier effect, automatic stabilizers like unemployment insurance and progressive income taxes, and the tradeoffs policymakers face when trying to stimulate or cool down the economy. I also cover the limitations of fiscal policy, including political lags, national debt, crowding out, and how fiscal policy differs from monetary policy. Whether you’re studying economics or trying to understand headlines about spending bills and tax cuts, this video gives you everything you need to interpret fiscal policy more clearly.
Chapters
0:00 – How Fiscal Policy Affects You
0:18 – Fiscal Policy Defined
0:33 – Government Spending and Taxes
0:57 – Expansionary vs Contractionary Fiscal Policy
1:45 – The Multiplier Effect
2:15 – Automatic Stabilizers
2:44 – Fiscal Policy Limitations
3:25 – Fiscal vs Monetary Policy and Tradeoffs
*Seeking Alpha Deals:*
💰 *Get $50 OFF Alpha Picks:* https://ryano.finance/alpha-picks
📈 *Get $159 OFF Seeking Alpha Premium and Alpha Picks Bundle:* https://ryano.finance/seeking-alpha-bundle
🔥 *Get $30 OFF Seeking Alpha Premium:* https://ryano.finance/seeking-alpha
🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa
🎓 *Ivy League Certificate Programs by Wall Street Prep — Save $300 with code RYANOC*
1. Columbia & Wall Street Prep AI for Business & Finance: https://ryano.finance/columbia-ai
2. Wharton & Wall Street Prep Real Estate Investing & Analysis: https://ryano.finance/wharton-real-estate
3. Wharton & Wall Street Prep Private Equity (PE): https://ryano.finance/wharton-pe
4. Wharton & Wall Street Prep Financial Planning & Analysis (FP&A): https://ryano.finance/wharton-fpa
5. Wharton & Wall Street Prep Value Investing: https://ryano.finance/wharton-avi
6. Wharton Restructuring & Distressed Investing Certificate: https://ryano.finance/wharton-rdi
*Get 10% Off Snowball Analytics to help manage your portfolio with code RYAN here:*
https://snowball-analytics.com/register/ryan
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
