December 2014
Beginner
352 pages
14h 24m
English
Content preview from The Economics Book
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IN CONTEXT
FOCUS
Economic policy
KEY THINKER
David Ricardo (1772–1823)
BEFORE
1799 Britain introduces income tax during war with revolutionary France. Public debt approaches 250 percent of national income.
AFTER
1945 Following World War II, government spending, taxation, and borrowing rise in developed economies to meet new welfare commitments.
1974 US economist Robert Barro revives the idea of Ricardian equivalence, which says that people spend in the same way regardless of whether their government taxes or borrows.
2011 The European debt crisis intensifies, sparking debate about the limits of taxation and public borrowing.
Should government spending be ...
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