Economic Laws of United States

The Great DepressionPeople lose all their money

Bank failure

Strong need support from the government

Economic PolicyLaissez-faire

 Free market economy

Do Nothing

 New Deal

3RRecovery

Relief

Reform

Keynesian economics (Keynesianism)

Supply－ side economicsMonetarism

President ClintonNew economy

The Idea of Economy

--------1960s 1980s 1990s

Employment Act of 1946Able to work and seeking work

National Production and Employment Budget

Maximum employment, production, and purchasing power

Create the Council of Economic Advisers

“The Congress hereby declares that it is the continuing policy and responsibility of the Federal Government to use all practicable means consistent with its needs and obligations and other essential considerations of national policy, with the assistance and cooperation of industry, agriculture, labor, and State and local governments, ... for the purpose of creating and maintaining, in a manner calculated to foster and promote free competitive enterprise and the general welfare, conditions under which there will be afforded useful employment opportunities, including self-employment, for those able, willing, and seeking to work, and to promote maximum employment, production, and purchasing power.” Employment Act of 1946

Full Employment and Balanced Growth Act of 1978

Four Goals

Full employment

Economic growth

Balanced budget

Elimination of inflation

Omnibus Budget Reconciliation Act of 1993

Change

Revive the U.S economy

It created 36 percent and 39.6 income tax rates for individuals in the top 1.2% of the wage earners.