Active learning ideas
Fiscal policy is the use of government spending and taxation to influence the level of economic activity. In this unit, students analyze the Irish National Budget, exploring how the government balances the books while addressing social needs. They study the difference between current and capital expenditure and the implications of running a budget deficit or surplus.
Activity 01
Students are assigned roles as different Cabinet Ministers (Health, Education, Housing) and must negotiate for a share of a limited budget. They must justify their spending based on economic growth and social equity goals.
How does the Irish government use taxation to influence behaviour?
Activity 02
Students are given a list of 'sin taxes' (tobacco, sugar, carbon). They discuss in pairs whether these taxes are more effective at raising revenue or changing behavior, then share their conclusions with the class.
What are the macroeconomic effects of a budget deficit?
Activity 03
Groups research Ireland's current national debt and debt-to-GDP ratio. They create a visual representation of how this debt affects future generations and brainstorm two ways the government could reduce it sustainably.
How does fiscal policy address economic inequality?
A few notes on teaching this unit
Watch Out for These Misconceptions
A budget deficit is always a sign of a failing economy.
Deficits can be used strategically to stimulate growth during a recession (Keynesian approach). Comparing the 2008 crash response with more recent budgets helps students see the role of timing in fiscal policy.
All taxes are used for the same purpose.
Taxes serve different roles: revenue raising, redistribution, and behavior modification. A sorting activity where students categorize Irish taxes by their primary goal helps clarify these distinctions.
Methods used in this brief
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