Activist Policy

Activist Policy

Any policy whereby a government seeks to direct or affect the economy in which it operates. For example, a government may offer a tax credit to homebuyers to stimulate homeownership. Likewise, it may cut taxes to encourage spending or it may increase its own spending to create demand for goods and services. All governments pursue activist policies inasmuch as they seek to encourage growth; however, the term connotes a policy in which the government plays a more direct role. See also: American Recovery and Reinvestment Act of 2009.