The fiscal policy is the policy of a government in controlling its own expenditures and taxation, which together make up the budget. (Dictionary, 2011) The fiscal policy of the United States is proposed by the President in the form of a budget or spending plan. This then goes to Congress and they have to decide how the spending and taxes will happen.
I think it depends on the year or a specific period of time that to be able to answer the question of whether it is expansionary or contractionary. I believe in today and tour recent years I would have to say that ideally the government wants to have an expansionary fiscal policy and being able to reduce taxes on the people. However, it seems that a contractionary fiscal policy is in effect now. Taxes being raised but with government spending as well, which is more contradictory than anything else.
American consumers can influence decision makers on fiscal policies by having the knowledge and the power of voting for a person that wants to make changes to the current policies set forth. By spending and or saving and investing at the right times, this also makes a statement.
Unfortunately over the past 5 years our economy has been awful. Many people are losing their jobs in this recession time as well as their homes. Their personal debt is skyrocketing and people are just unable to stay afloat in these rough economic times. Gas and milk prices are just outrageous. Recently I heard that they see change coming for people that own homes to be able to re-finance to lower rates. Hopefully that will mean that the housing market will come back up and people will be able to feel like they aren’t about to lose everything.
Dictionary.com 2011, definition of fiscal policy