History of Fiscal Policies
Looking at U.S. history, we can see that some fiscal policies have been highly successful, while others have been partially successful or even unsuccessful. Let's look at some of the more notable fiscal events in history. You will see the difficulty of predicting not only the ultimate result of these polices, but also if consumers will behave as anticipated.
Fiscal policy came to be used as an economic tool during the Great Depression era. To get a picture of just how devastating the Depression era was, check out some economic facts. In October 1929, the stock market plummeted 23 percent during a two-day period, the result of rampant speculation and buying stocks on margin. Yet the stock market crash ...