Summer School 2: How taxes change behavior and the economy

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  Hey everyone, just a quick message before class gets started.

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  Planet Money Summer School is having a live graduation ceremony and party in New York City on August 18th.

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  It's going to be great.

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  So get your tickets now before the show sells out.

• 00:14

  Planet Money Plus supporters get a 10% discount and get early access to Summer School episodes all summer long.

• 00:20

  Check out the show notes for a link to buy tickets and to subscribe to Planet Money Plus.

• 00:26

  This is Planet Money from NPR.

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  Welcome back, class, to Planet Money Summer School,

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  the only economics degree that comes with UV protection for the beach, SPF 50.

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  This season we're talking about political economy,

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  which is a fancy way of saying the role that the government has in our economy.

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  And if you've been paying attention these days,

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  you might have noticed that the government is all up in every part of our business.

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  Today is class number two, taxing our way to a brighter tomorrow.

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  I'm Robert Smith.

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  One big reason to pay attention to what the government is doing is

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  because they are doing it with our money.

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  We ask more of our government, and then they ask more of us through our taxes.

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  At the very beginning of our country, Congress was desperate for money.

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  They levied taxes on imported goods, yes,

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