## How Governments Move the Economy: Understanding Fiscal Policy
When you hear that "taxes are going up" or "the government is investing more in infrastructure", behind that there is a strategy called fiscal policy. Basically, it is the game of public money: how governments decide to collect taxes and how they spend those funds. This tool directly controls how much money circulates in the economy and directly affects your pocket.
## The mechanism: taxes and public spending
Fiscal policy works with two main levers. On one side are taxes, which determine how much money the government extracts fr
View OriginalWhen you hear that "taxes are going up" or "the government is investing more in infrastructure", behind that there is a strategy called fiscal policy. Basically, it is the game of public money: how governments decide to collect taxes and how they spend those funds. This tool directly controls how much money circulates in the economy and directly affects your pocket.
## The mechanism: taxes and public spending
Fiscal policy works with two main levers. On one side are taxes, which determine how much money the government extracts fr