Question:

What does economic issues means?

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can you please give me a sample of an economic issue and how it affects the us

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  1. Economic issues are political issues that deal directly with the economy.  Examples range from taxes to trade policy to minimum wage to health care.  

    Let's take the issue of taxes.  Taxes affect the US because higher taxes bring in higher revenue, which increases the level of services the government is able to offer, but it also takes money out of private enterprise, where it could (possibly) be spent more efficiently.


  2. The government  policies determines the inflation rate and smooths the business cycle with fiscal (deficit spending) and monetary policy.

    The government regulates commerce so can make businesses  more or less efficient, breaks up  monopolies, and impose foreign trade restrictions.

    The Government provides services (defense, law enforcement, social welfare programs, highways etc) and collects taxes to fund them.

    All of these thing effect the economy and which become "issues" in any election year varies, but the amount spent on welfare programs and level of taxation and who to tax is always important to people. However the regulatory function usually do not get much attention, but the sub prime mortgage crisis  is seen to may as a failure in regulations so is an issue this year. Trade policy is also an issue because it is in part  responsible for the failure of wages for many people  to increase with the economic growth of the country.

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