Notre Dame Journal of Law, Ethics & Public Policy Volume 20 Article 4 Issue 2 Symposium on the American Worker 1-1-2012 How Does Fiscal Policy Affect the American Worker John D. Mueller Follow this and additional works at: http://scholarship.law.nd.edu/ndjlepp Recommended Citation John D. Mueller, How Does Fiscal Policy Affect the American Worker, 20 Notre Dame J.L. Ethics & Pub. Pol'y 563 (2006). Available at: http://scholarship.law.nd.edu/ndjlepp/vol20/iss2/4 This Article is brought to you for free and open access by the Notre Dame Journal of Law, Ethics & Public Policy at NDLScholarship. It has been accepted for inclusion in Notre Dame Journal of Law, Ethics & Public Policy by an authorized administrator of NDLScholarship. For more information, please contact
[email protected]. HOW DOES FISCAL POLICY AFFECT THE AMERICAN WORKER? JOHN D. MUELLER* OVERVIEW American policymakers have begun to prepare the public for fiscal policy changes, such as comprehensive reforms of the Federal income tax and Social Security retirement systems, which would profoundly alter the lives of American workers and their families. Projected fiscal imbalances are clearly unsustainable, and Europe's economic and demographic crisis, characterized by high unemployment and falling fertility rates, illustrates the grave dangers of policy mistakes. But no American consensus has emerged, partly because there is no generally accepted and empirically grounded theory explaining how fiscal policy affects employment and fertility. This paper lays out a simple but com- prehensive framework for analyzing such questions, by proceed- ing from the homey example of a children's lemonade stand to describe how Augustine's theory of personal love and Aristotle's theory of distributive justice were originally integrated within economic analysis.