 POLITICS IS CONFLICTUAL
The estate tax is a progressive tax on assets left to descendants upon someone’s death, with tax rates varying depending on the size of the estate. Read Arthur Laffer’s and Michael Kinsley’s articles on the Senate debate over the estate tax, which is a progressive tax.
“Spend It in Vegas or Die Paying Taxes”
Arthur B. Laffer
The Wall Street Journal Online
First published April 2, 2009
“Democrats for Rich Heirs?”
Michael Kinsley
The Washington Post Online
First published April 10, 2009
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| 1. What does Laffer argue is the optimal tax rate for estate taxes? Why does he argue this? |
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| 2. What does Kinsely argue is faulty with Laffer’s logic? Is he persuasive? |
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 Political Process Matters
Read about how the member states of the European Union operate their fiscal and monetary policy. http://ec.europa.eu/economy_finance/the_euro/index_en.htm?cs_mid=2946 |
| 3. How does this process differ from the way that the United States sets fiscal and monetary policy? |
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| 4. What are the advantages to having a common currency and having monetary policy set by an international organization? What are the disadvantages to this sort of system? |
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| 5. Do you think that individual countries are hindered in their economic growth because they cannot set their own monetary policy? Why? |
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 POLITICS IS EVERYWHERE
Listen to this NPR story (by clicking “listen now”) detailing how the FDIC shuts down non-compliant banks to maintain stability in the banking system.
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| 6. Why does the FDIC keep their activity secret? How does this promote stability? |
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| 7. Do you think the banking crises of the Great Depression would be different if the FDIC had been in place by that time? |
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