Essays on Federal Deficit

The US federal deficit and the debt are two inseparable problems facing the US since deficit spending began. There is some confusion between the two but the difference is quite simple. The deficit is the amount spending over the fiscal year exceeds the increase in revenue. If we bring in $10 and spend $15 there is a $5 deficit that has to be made up somewhere. It is either cut or funds are acquired elsewhere such as bonds or borrowing through other means. Over time this has a cumulative effect that is the debt which builds interest.

Fortunately since 2009 the ...

The federal deficit is a number that has changed over the years. Between the years 2007 and 2009 the deficit increased from about $160billion to $1.6Billion. It has been drastically shrinking since then but not at a rate that would make everyone happy. Currently the deficit is the lowest since 2008. The difference between the debt and the deficit is quite simple. The deficit is spending over the available revenue that is made up through borrowing of some verity.

There are a few ways that money is borrowed. First of all, it can be borrowed from countries like China by selling ...

- 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 ...

In modern economy monetary and fiscal policies are the key elements of government regulation. Expansive monetary and fiscal policies often lead to budget deficit and national debt increase. The main goal of this paper is to reveal how monetary and fiscal tools can stimulate the economic growth and prevent negative effects such as inflation.

FISCAL AND MONETARY INSTRUMENTS OF ECONOMIC GROWTH AND INFLATION CONTAINMENT

When real GDP is below the nominal, it means the economy is facing the money devaluation process, or inflation. The Federal Reserve System anticipations of the main macroeconomic indicators have revealed the relatively stable growth of the economy. The U.S. economy average inflation rate is ...