Economics 219: Final Paper

          Your final paper will be due at the final exam.  NO EXCEPTONS!!! The goal of the paper is to use what you have learned in class to examine a current, relevant, macroeconomic issue.  There is no strict length requirement, but bear in mind that you will be graded on the thoroughness of your analysis (5–10 pages should be sufficient for most topics).  Most importantly, HAVE AN OPINION!! That is, your paper should provide a definite answer to the question at hand and then back up that answer with relevant empirical/theoretical support.

Below are some suggested topics.  If you would like to write about a topic not listed below, please let me know.  The deadline for choosing a topic is TUESDAY, SEPTEMBER 30^th. 

1)      Rising inequality in income and wealth: is it happening and why?  Should we do something about it?

2)      Are we entering a period of deflation? Should we be worried?

3)      Do tax cuts increase economic growth and tax revenues, or is it “voodoo economics”?

4)      What should we do about the looming social security crisis?

5)      Should we be worried about government deficits? Do we need a balanced budget amendment?

6)      Are we in a “new economy”?  That is, can we grow faster that 2.5% per year and have unemployment less than 5% without increasing inflation?

7)      Should we reform our tax code?  Specifically, would a flat tax or a national sales tax be preferable to our current system? Should we eliminate the capital gains/dividend tax? 

8)      It is occasionally suggested that we return to the gold standard (most recently, by former presidential candidate Steve Forbes).  Would this be a good idea?  Explain.

9)      Some argue that it took a World War to pull the US out of the Great Depression.  Are wars good for the economy?

10)  The economic equivalent of the infamous chicken/egg controversy:  does money cause output or does output cause money?