Public Debt College Essays Samples For Students

Abstract

The current paper explores the main differences of the Great Recession in 2007-2009 from other economic collapses in the history if the United States. Section I discusses the general features of a recession and describes the main responsibilities of the National Bureau of Economic Research. Section II is devoted to the comparison of the Great Recession with the recession of 1980s. The section is divided into four subsections. Subsection A presents the basic comparison of recessions in the U.S. history and explains the choice of the 1980s period for the further comparison. Subsection B explores differences in unemployment in ...

Principles of Macroeconomics: The Importance of National Debt

Introduction
National debt is a popular term that is heard on the news or read in the papers and is utilized by economists, politicians, opinion-providers and academicians to refer to an economic concept whose importance transcends social status and location. National debt is defined by CNBC as the summation of all the debt owed by a country’s government . National debt is composed of the amount borrowed or the principal plus all the interest payments levied on the principal amount. National debt is important because it funds government programs in cases wherein the government has not collected enough revenue from ...

For many years, financial crises have been believed to be the preserve of the developing countries which are believed to be more vulnerable than the developed country as explained in the video “The Financial Crisis & Public Debts Explained in Detail”. However, this notion was overturned in the year 2007 – 2008 financial crises that hit the ‘great’ countries in the world. From this experience, it is evident that all countries are at risk of experiencing financial crisis regardless of the policies in place. Nevertheless, the approach towards the arrest of the crisis is what defers. In developing countries, the effect ...

Introduction: History of the National Debt

A debt crisis is a national problem of countries with regards to their ability to repay borrowed funds. It deals with national economies, national finances or budget and international loans. The meaning of a "debt crisis" has changed over time. The main definition comes from the main financial institutions such as Standard and Poor's or the International Monetary Fund (IMF). Basically, a debt crisis is defined as an occurrence where a national government cannot pay its debts and it the process, asks some assistance (Zuckerman, 2011).

The US national debt represents an "existential threat" to its federal finances. It evidences the country’s ...

EXTERNAL DEBT SUSTAINABILITY OF U.S: A NONLINEAR APPROACH

Abstract
The main objective of this paper is to carry out an investigation of the sustainability of external debt of US through a non-linear approach. We are first going to test the non-linearity and non-stationary nature of the data simultaneously. We are then going to test the linearity of the ratio against the threshold autoregressive using the TAR model. The US debt sustainability has been an issue of global concern for quite some time now. We are going to analyze it using the MS unit root test which is applied to the debt flow for the current account. The ...

Egypt Economic Issue

Rising Public Debt
Since the revolution that overturned the rule of Hosni Mubarak, Egypt has experienced several challenges from the social, political and economic fronts. On the economic front, there have been issues of foreign direct investments, debt crisis, increased level of prices and the gross domestic product. The economy has been experiencing shocks as a result of the need to acquire social justice with the high prices of basic goods eroding the confidence the confidence in the economy.
The domestic public debt in Egypt has skyrocketed since 2009 from a 45.7% of the gross domestic product to 72% ...

Perhaps the most equivocal contributors in the debate on policies of public debt and government fiscal policies in the economy are undeniably David Ricardo and Thomas R. Malthus. This paper undertakes to analyse David Ricardo and Thomas Malthus’ debate on public debt policy and the role of government in an economic system. Though they argumentatively differed, they did agree on some views such as the inefficiency of government spending. Ricardo argued for redemption and government restriction whereas in contrast Malthus was against wiping off public debts arguing that doing so would depress aggregate demand in the end. The two ...

The economic crisis in Egypt post January 2011

Abstract
The paper looks into the economic crisis in Egypt and how the background was formed for the January 2011 revolution. How the crisis happened, what were the consequences and how Egypt can get back on track are some of the important questions that need to be looked into. The stability of the Mubarak regime was well under pressure even before the major changes in the political system followed. Even before the present revolution and reforms in Egypt, there were significant changes taking place in the political system. The nation was experiencing relative freedom of expression for the ...

Increase Government Spending to Fight Recessions

Introduction
Government spending as a recession recovery tool has been the subject of debate numerous times. To date, there is no definitive proof of its success or failure of its application. An active fiscal or a monetary policy is the sum total of the actions taken as a reaction to the current economic conditions; the government chooses to use a specific policy to deal with something in the economy (Mankiw, 2001).

Government spending as a method for lessening recession is a tool that has been proposed and even applied by many governments when they are experiencing a recession. This ...

Abstract

This paper gives an insightful preview of the Panama's economy. It analyzes key data from the current major economic indicators to comprehend the state or nature of Panam. The analyzes espouse data and statistics drawn from the Panamanian Bureau of Statistics and Economic portfolios. It analyzes both the endogenous, exogenous economic factors, as well as their impact on the Panamanian economy. One of the most conspicuous endogenous factors is the Panama’s unsustainable development growth models. Its economic growth mostly focuses on the economic indicators while ignoring critical and pressing aspects such as social as well as environmental problems. ...

Credit rating of a country is mainly the ability of a country to repay the loans that it borrows both domestically and from other countries. It is mainly determined by the economic conditions that are prevailing in the country at a certain time. There are other factors that affect the credit rating of a country. This research paper will evaluate the credit rating of South Africa. The research will evaluate the cause of the current credit rating of South Africa and its effects to the country in various sectors of the economy (KRUGMAN, 2009).
South Africa is a country that has a very good ...

Introduction

The U.S. is moving ahead on a dangerous budget path. With the current spending and debt already treacherously high, the future debts are expected to rise even higher. It is certainly a serious matter when public debt is expected to reach 90 % of GDP (Boccia). The implications would be severe as the larger debts would increase interest rates, horde private investment and raise price inflation. U.S. policymakers should take lessons from Greece and Japan to avoid a fiscal crisis and economic stagnation that occurs due to public debt overhang. Growing federal debt in U.S. could lead to a sudden fiscal crisis, and this ...

The term "demand" in economics means payment need, i.e. need that the subject is able to pay. From this definition it follows that the demand for a particular commodity (service) depends on the price. This means that the increase in commodity prices will lead to a decrease in demand, and, conversely, a decrease in prices will lead to higher demand. The relationship between price and quantity demanded is stable. (Agarwal, 2013)
The cause of the change in demand is change. This reverse causal relationship between price and quantity demanded is the law of demand. The law of demand manifests ...

Money and prices in the long run and open economies dictate the financial market. As such, that is why factors such as domestic variables and foreign monetary policies are over-emphasized. Demand for money is thus affected by the domestic variables, which include interest rates, price expectations, and permanent income, among others. As such, this paper explores the financial market to reveal the viable strategies the US can adapt to secure reliable money and prices in an open economy on a long-term basis.

The state of US Financial Market

Over the years, the economy of the US has been in good shape, especially when compared to ...

Introduction

The topic of discussion looks at establishing the extent to which China appears to be a threat to the United States. In this topic, there will be need to evaluate the relations between China and the US and determine the importance of the relations to the whole world. According to scholars and academicians, the relations between the two countries are very important to the economies of all other countries in the world. The supremacy of the two countries thus poses a challenge to each other in terms of who is superior to the other. However, the fact is that ...

Question 1

Since the 1960s, the priorities of the federal government have been on a collision course that threatens to destroy public investments. There has been a dramatic expansion of entitlements that started under the great society. Likewise, investments have taken a decreasing share of the federal budget. As the Baby Boomers enter retirement, entitlements are expected to intrude upon an even larger part of the federal dollars reserved for building roads, educating kids and way for technological breakthroughs. This is so because entitlements are an extremely essential part of economic security and without change investments will diminish affecting the ability of the economy ...

Section A: Plan of Investigation

Most of the people in the current generation believe that war and essentially investing in the military is good for the economy. This is quite contrary to public acknowledgement and comprehension of the costs involved in case a war takes place. World War II disrupted a lot of systems the world over; America not being an exemption. This paper seeks to elucidate on the extent of damage the American was subjected to as a result of the war. Focus will be given to the macroeconomic implications of U.S policies as a result of the conflict. To achieve a sound conclusion, the paper will lay ...

- Globalization and burgeoning technology/innovation that shrink product-life-cycles, coupled with global competitor’s quality and price, brings goods to the USA adding to 80-90% mega-competition for most consumer goods sold in USA, compared to <25% in 1950’s. Equally, global companies compete severely and challenge US firms abroad.
- The U.S. and Eurozone economies play major roles in the world economy and are crucially important for each other’s prosperity. The two sides combined account for around 40% of world GDP, over 25% of world trade, 60% of world foreign direct investment flows, and 60%-70% of ...

Role of China in US Debt Crisis

Article Summary
James Dorn (2013) has described the pressures within China that force it to hold a substantial proportion of US debt. Dorn proposes measures to ease the internal fiscal pressures of China so that global financial stability and harmony can follow (Dorn).
China holds 8.4 % of the US gross public debt. The Chinese holdings of US Treasury bonds are, however, only the consequence US debt, not the cause. The real cause of US debt is overspending and excessive entitlements in Medicaid and Medicare. However, the financial repression of the Chinese economy has had an impact on the ...

Introduction

Lately, the United States has been trending on a wrong path occasioned by their current budgetary hurdles. The current federal spending and debts are considered to be too high that it will take numerous generations to clear the debt. This is further complicated by the projections given on future spending and debts. The spending and debts are projected to rise by more than two-fold, largely due to increased entitlement spending. It is, therefore, clear that the current American economy will lead to the stagnation of future generations. A variety of academic research has pointed to the likelihood of the United ...

Catholic Charities are among the largest charities located in the United States. Catholic Charities is a non-profit agency, which was founded in 1910 as the National Conference of Catholic. Catholic Charities is a network of charities whose goal is "to provide service to persons in need, to promote for justice in social structures.” As what is stated on the Catholic Charities main website, in 2008, Catholic Charities agencies served more than 8 million individuals. Catholic Charities received in grants approximately $2.9 billion from the federal government in the year 2010. Comparatively, the organization’s annual revenue was $4.67 billion. Approximately $140 ...

United States public debt can be defined as the money borrowed by the United States government by the issue of treasury and other securities. The public debt consists of two main components. The debt which is held by the public such as the Treasury securities held by investors. The debt which is being held by the government accounts and includes the non-marketable securities. The debt ceiling is the maximum amount of debt the United States government can have at any given time.
On 31st December 2012, the United States government reached its maximum capacity to issue debt to ...

In recent news, the problem of the Eurozone has been in the interest of various countries due to the economy’s influence over the World Market. While some of the older members of the European Union managed to apply the Euro without many effects in their economies, other member had experienced various financial problems such as debt and increased inflation. Now, these troubled EU member states are facing complications in recovering their formerly stable economies. This problem is still currently present in some member countries, with Greece being the centre of the current economic problem of the Eurozone. Before ...

Question 1

Answer for Student 1 According to the article governmental expenditures can be subdivided into two categories: discretionary and nondiscretionary. Discretionary cost is the one federal government faces when paying for special items, which are included into the budget every fiscal year. Nondiscretionary expenditures are determined by entitlement programs, such as Social Security and healthcare, thus they are formula-driven and cannot be changed in the short-run. Both of them have contributed a lot to the current debt, however, nondiscretionary expenditures also persist, therefore taxpayers will pay more and more to cover these costs. Hence, the tax burden will continue to grow, ...