ABSTRACT
Eva Peron is loved – in part because of the money she’s giving away. “And the money kept rolling out in all directions. To the poor, to the weak, to the destitute of all complexions.” The items she is spending money on bring up a good opportunity to discuss fiscal policy. Fiscal policy refers to the way a government taxes and spends in order to influence the economy. Peron (Eva’s husband) and Eva were receiving money in and spending it on what we might think of as welfare programs – helping the poor. That is one way to stimulate the economy. Another is to lower tax rates so those who are working keep more of their money – and then either spend or save (which turns into investments).
