Essays on National Debt

The affordable Care Act 2015 formerly christened as Obamacare is one of the major reforms in the health sector. Obamacare seeks to expand and improve health care access to a majority of Americans by curbing costs of healthcare through taxes and regulation. The primary focus of this policy was to provide more Americans with access to health insurance, improved quality of health insurance and health care, reduce healthcare expenditure in the country and more importantly regulate the insurance industry. However, the policy has received support and opposition in equal measure. Proponents of the policy call it a monumental legislation ...

Macroeconomic and Account Balances

India is seen to react rapidly to volatility in the global economic environment as concurred in the modifications of the macroeconomic policies when the North Atlantic financial crisis occurred (Kapur and Mohan, 2014, p.1). However, India’s policy changes is perceived by Kapur and Mohan (2014, p.1) to be temporarily stimulating to the local economy since the expected growth will gradually slowdown. But the additional effect is that inflationary and BoP pressures remain constant, which can either by improved or worsened by the domestic policy bottlenecks (Kapur and Mohan, 2014, p.1). This was seen during the financial market volatility ...

Charismatic leadership in relation to Weber’s theory is the perception of the sub-ordinates that a leader has an attractively inspired gift, which will change their lives extraordinary (Sendjaya, 2015). It is based on the characteristics of the leaders like passion, confidence, and high level ability to influence people. However, these abilities of the leaders sometimes contribute to dysfunctional attitudes, such as high level egoism and self-centralism (Van Wart, 2014). In other words, a leader can be positive charismatic leader or negative charismatic leader. The leader with positive charismatic leadership abilities is oriented to others, whereas the leader with ...

Introduction

The rationale of the above paper is to outline the difference amid budget deficit and national debt while at the same time indicating their significance. The paper seeks to justify as to whether different governments in the global setting should operate with a balanced budget or not. In the article, budget deficit is defined as the amounts of cash spend in excess by the government over the government income generated from tax revenue during a set time as part of government expenditure (Furgang & Furgang, 2012). The shortfall in tax revenue is therefore compensated through borrowing or currency emission as ...

PRESENTATION

PRESENTATION

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National debts are caused by budget deficits that are as a result of spending more than what is received from taxes. This results in harsh economic times for countries as they strive to adjust to the national debts that occur during the period. Several theories have been put in place to argue and relate to the issue concerning national debt. Keynesian economists bring forth arguments that strive to balance the budgets and appropriate times to increase the deficit. Economist John Keynes was against the idea that the state was in need of a balanced budget (Tobin 1975). His argument ...

1. Introduction The health care expenditures in the United States are one of the highest among the developed countries. The studies and researches done on the topic of growing expenditures are showing the need to change the health care expenditures by introducing new policies in order to keep the health care system sustainable in the future. With the ageing population and the Medicare and Medicaid health programs the expenditures are rising and are predicted to grow beyond the governmental budget capabilities in the near future. The paper will examine the reasons for the high costs of the health care ...

How the composition of government spending changed since the 1960’s

Taylor (para 9) notes that a huge percentage of government expenditure is directed to entitlements as opposed to investments. Notably in 1962, the expenditure on investment was 2 ½ times that of entitlements. However, in the 21st century, the spending on entitlement is three times more than on investments (Taylor para 9). This trend attributes to the fact that most of the government spending goes to consumption, and only a few investments are made. In 1960’s the expenditure on entitlements was approximately 15 percent, but now it is more than half of all the federal expenditure. For instance, in ...

Trump is the leading presidential candidate of the Republican Party, and he is campaigning under the slogan of make America great again. His campaign slogan is based on several extreme economic and social policies. The economic policies of a president are mainly macroeconomics policies that affect all the components of the country’s gross domestic product. His main economic policies touch on taxes, labor supply, investments, and international trade. He looks forward to cutting individual and cooperate taxes, increasing the volume of exports, decreasing imports and increasing private investment (Trump, 1). The most popular and extreme economic policy that ...

In any economy, it is expected that the government will have a certain amount of debt due to not having the required amount of money to cover allotted expenses within a short period of time. In fact, some debt is actually encouraged because it gives the government the opportunity to invest for future infrastructures and programs, and it is expected that it will be paid off by the surpluses collected from them. However, there is still some debate over how much debate can be considered ‘acceptable’ per se (Johnson & Kwak, 2009). In spite of all this, there is one ...

The Federal Reserve is an independent federal agency that was created on December 23rd, 1913; the purpose of this agency was to carry out the functions of a central bank to implement centralized control over banking system of the United States (“The Federal Reserve: What Is The Fed? | Investopedia”). The Federal Reserve consists of 12 Federal Reserve Banks located in major cities, nearly 3 000 commercial member banks appointed by the President of the Board of Governors, Federal Committee on Open Market and advisory councils (“The Structure and Functions of the Federal Reserve System”). The basis for its creation ...

Over the years, the government spending has changed drastically. The government which is a representation of the people has been doing more under entitlements than investments. In the 1960s, the government did much for the investments than the entitlements, but the reverse has been happening. Few investments are being developed, and the opportunities reduce because much of the finances are used for benefits. The federal expenditure has grown rapidly as the governments become. Before the 1960s, the government earned more from the tax payers and revenue collection but after the Second World War, they economy boomed, and the government ...

Introduction

National debt is a controversial issue, giving rise to debates among politicians and economic analysts. The survey was done on college and university students, about their view on the national debts and their influence on the economy and distribution of income. The survey also aimed at gauging the students’ stand on how national debt impacted on the main sectors in service and commodity markets. Moreover, the survey mainly used close-ended questions to source answers from the audience. However, open-ended questions were rarely used. Apparently, close-ended questions include questions which allow the audience to provide their opinion about an issue ...

Why do total leakages and total injections have to be equal?

Injections and leakages have to be equal because the total amount of money/income that is coming into a sector of the economy must be equal to the amount that leaves that sector so that a state of equilibrium can be achieved for the economy to function properly (Baumol & Blinder, 2008, p.125).

Discuss the limitations of national income accounting

The major limitation of national income accounting is that there are various economic activities that are not included in the national income accounting. These activities includes income from prostitution and black market. In addition, another limitation is that it ignores quality of life by focusing on how much money is ...

Andrew Jackson is the 7th President of the United States of America. Before being a President, he was known for his extraordinary skills in warfare. Andrew Jackson is the controversial personality due to some of his decisions. Some people call him a hero, while for some of them, he is a villain. For Jackson's critics, he was like American Hitler, who ruled like a dictator throughout his Presidency. He was a villain in the eyes of some of the people because; during his presidency he took many selfish decisions. They also think that he drove away those people whom he didn't like. ...

Introduction

Among the different expenditure heads of the Federal Government, we are mainly concerned with Public Investment expenditures and Entitlement expenditures here. Public Investments expenditure is those as in public projects (building of roads, bridges, schools, hospitals etc.) which are direct investments. Expenditure is also incurred in indirect investments i.e. investments in sectors like Education, Healthcare, Food and Nutrition, R&D, etc. which may not show a direct value return as they are intangible, but are vital to nation building. On the other side, we have the entitlement expenses which is payable to beneficiaries who is entitled to them as per ...

In case, real GDP is lower than potential GPD expansionary policies are implemented in correcting contraction of business cycle. Expansionary Fiscal policy leads to increases in purchases by government, tax rate decrease and transfer payment increase to overcome contracting business cycle. Expansionary fiscal policy closes gap of recession, stimulates economy and decreases rate of unemployment.

Fiscal policy tools to stimulate economy are:

Government Purchases Expenditures done by government sector for services and final goods come under Government purchases. Government purchases are part of GDP bought by the government. Government purchases include heavy cost expenses like highway construction and aircraft clips carriers to smaller expenses like ...

The Democrat deficit reduction plan

This plan by the democrats is intended at realizing roughly $4.4 trillion in deficit cutback. This will alternatively lead to the payment of the cost for the American Jobs Act that adds up to a total of $447 billion. In summary, the Democratic Party aims at reducing the U.S deficit and cutting down fiscal spending by the federal government. It seeks to do so by first and foremost, cutting expenditure as in the Budget Control act by $1.2 trillion. Secondly, it aims to trimming expenditure on mandatory programs as follows:

- Reducing overpayments in Medicare which adds up to $248 ...

I am a full time student at the University of Miami pursuing a bachelor’s degree majoring in Economics. My occupation and position in society is that of a student. As a student of economics, the annual president’s speech on State of the Union carries a lot of weight regarding the economic evaluation of this country over the past years as well as gives the government’s plan on how to approach various crucial economic sectors. I admit not to have been a keen follower of the State of the Union speeches before, with the only existing memories comprising of nostalgia when I used ...

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 ...

The role of policy makers in any economy is to regulate macroeconomic activities with the main goal of maintaining economic stability. The goal of the policy maker is to maintain stability, which is significant in promoting economic growth and social welfare of the citizens. The policy makers have implemented various policies to stimulate the economy since the financial crisis when government suffered a critical national debt. They are also trying to implement a reliable strategy for balancing the government’s budget in the long- run to solve macroeconomic problems. Therefore, implementing long-term fiscal sustainability is vital for today’s economic growth ...

The total budget of the United States is comprised of the off-budget and the on-budget. Off-budget are parts of the budget that have trust funds. This is for instance social security fund, and Medicare. On the other hand, parts of the federal budget that operate without a trust fund are referred to as on-budget. A deficit or surplus in the total budget is influenced more by the on-budget than by the off-budget such that, a deficit in the on-budget increases national debt. Much of the history of the history of the United States of America from 1930 to 2011 is characterized ...

Introduction

The President Barack Obama unveiled his blueprint budget for the fiscal year 2015 on Tuesday the 6th of March 2014. The $3.9 trillion budget blueprint sent to the Congress has already elicited sharp reactions among the American Public. The Government has made it clear that this budget is aimed at seeking new spending to improve economic growth. It also aims to reduce the national debt by increasing taxes on the rich, reducing outflows to health-care providers and revamping immigration laws. The budget is also seen as a bridge towards development, opportunity, and economic accountability. Through this budget, the President ...

The American civil War was took place between the northern states of the United States against the southern states between 1861 and 1865. The southern states (seven in number) having differed with the northern states on the issue of slavery declared their secession opting out of the initial union. This sparked a four year battle; the southern states supporting slavery and the northern states being against it. This essay focuses on the effects of this war on the economy. According to the US records, even though it was involved in two major wars between 1789 and 1860, the national ...

Abstract

This paper is on the topic of Government Expenditures and Revenues, Budget, National Debt. The first part of this paper will discuss the effect of government purchases on aggregate demand. The second section of this paper will discuss the shift in aggregate demand curve and change in GDP in comparison to aggregate demand curve, on the bases of factors like government purchases, GDP and the multiplier. The Final section of this paper will discuss the issue of crowding out and its implications on fiscal policy changes.

Government Expenditures and Revenues, Budget and National Debt

Yes, all government purchases have the same effect on the aggregate demand curve. ...

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 ...

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 ...

Members of the National Commission on Fiscal Responsibility and Reform of the United States of America have studied the economic downturn experienced by American families for a long time. They defined the reality of the problem and proposed a solution. They noted that the solution would be difficult and painful. The members consist of people with diverse backgrounds and signify diverse areas sharing a united principle that America’s long-standing financial fissure is indefensible. If the problem continues, the future generation will suffer inevitable poverty in a weak nation. The moment of truth is a document that tackles the economic challenges faced by ...

Government spending is changing radically based on the fact that public investments are being squeezed out by the entitlements of the retiring baby boomers. Investment spending in the year 1992 was two and a half times the spending on entitlements. Baby boomers benefits have grown faster than inflation and wages and as a result the spending on entitlements is now three times that of investments. This is evident from the proposed US budget where three-quarters of payment for mandatory spending was from the social security fund – an entity of entitlements. National debt refers to the amount of money the federal ...

Entitlement Spending in Historical Perspective

Defined as’ The process of spending on goods and service, whose value is not used in short period time’’, Investment Expenditure are the stimulator of economic growth through capital expenditure and increasing the production levels. However, over the years, the composition of Federal Government expenditure has been inclined more towards providing entitlements to the households rather than making investment expenditure. The graph below indicates how the composition of Federal Government Expenditure has changed over the years and Is shifting away from investment expenditure: In order to discuss the growing burden on national debt amid shift in the government ...

Entitlement Spending in Historical Perspective

1). The composition of the government spending has changed remarkably since the 1960s. It can, however, be analyzed from the fact that the government spending on the investment was about 2.5 times more than the entitlements, but now the entitlement spending is more and is abort 3 time more than the investments. In the 1960s, there were only 15% entitlement spending, but now it accounts for half or more of all the federal spending. It is estimated that the increase in the entitlement spending will continue in the future with the retirement of the Baby Boomers. The entitlement spending ...

HOW HAS THE COMPOSITION OF GOVERNMENT SPENDING CHANGED SINCE THE 1960'S? SUPPORT YOUR ANSWER WITH EXAMPLES FROM THE ARTICLE.

During the 1960s, nearly a third of the entire government expenditure accrued to the development of various forms of capital within the economy. Currently, nearly half of the share of that federal spending goes to capital development. According to a report by Third Way, the prediction is that spending in public spending may reach just 5 percent of federal government spending in the next few decades. In 1962, the expenditure on investments was 2.5 times the amount spent on investments (Taylor 1). On the contrary, spending on entitlements is thrice the amount spent on investment because of the Great Inversion. The ...

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Fiscal Policy – Aggregate Demand and Aggregate SupplyIntroduction In managing the economy, the government may opt to carry out a fiscal policy. Fiscal policy comprises of expenditure and taxes and at times borrowing by the government. Provision of public goods is a government’s duty. A public good is a good that the private sector fails to provide either because of the fewer rewards derived from such investments or simply because of the high cost of investment in such projects (Creel 2009, pg. 141). It is thus a role of the government ensure that the citizen enjoy these goods and services. In financing ...

Ladson Billings (2006) observes that achievement gap is one of the hot topics in American education system that lead to disparity between White and foreign students. The education debt continues to accumulate in economic, sociopolitical, and historical component. Ladson Billings (2006) compares the education debt to the national debt that contrasts to the national budget deficit. The education research focuses on the impoverished in America that represent an increasing number in the nation. The education researchers pursue inquiry from the foreign students while they rarely provide the solution to the problems. The prevalence of the achievement gap appears in ...

The US government has played a critical role in expanding its foreign aid to other global nations. Despite the fact that the US has given direct support to many nation-states around the world, it is important to note that the US is one of the developed nations that deal with hunger and poverty problems. Also, the debt ceiling in the US has risen over the years to about $17 trillion because of US offering aid to other nations such as Israel, Egypt, Ethiopia and Nigeria among other nation-states (Eberstadt, 2009, p.116). Thus, the US should limit their involvement in foreign ...

When the spending and expenditure of the government exceed the incomes the government receives from taxes, then the budget deficit occurs. A budget deficit plunges a country into a state with high public sector debt. Budget deficits have far fetching effects on the economic status of the country. If they become unsustainable, high interest payments and rising bond yields become a common feature in the country. An increase in the interest rates scares away investors who fear losses that may accrue to them when the capital they invest fails to give the expected returns . If they become worse, budget deficits lead to ...

Abstract

This paper aims to highlight some important and significant incidents of the Eurozone Debt Crisis that occurred for the year 2013 and 2104. It also signifies the efforts of the concerned authorities in the similar timeline to curb the drastic effects of the of the debt crisis on the Eurozone as a whole. With more stringent regulations the authorities try to control and eliminate the ongoing debt crisis. With a reduction in the investment worth billions and ever increasing stringent policies and control, the euro debt crisis is still nowhere near to its solution. Rather than curbing the debt crisis ...

Introduction

The American economy has been facing serious challenges most notably the recession and the property crash witnessed in 2008. As Salaam (2012) asserts, the American economy was already on the decline way before the 2008 crash. He suggests that the recession began way back in 2000 and most notably in 2007, but the country was spared the pains by the unsustainable boom in property sector. When the slump hit in 2008, the country was least prepared for it. This slump has persisted to this day. VCU (2014) concedes to this fact saying that the recession has resulted to a ...

Macroeconomics is a vast field of study that deals with the aggregate behavior of the economy. The term, macroeconomics, is a composition of two words: makro, a Greek prefix, meaning large, and economics. Putting it all together, the term is used to refer to a special discipline of economics that architects the art of structure, behavior and decision making of the aggregate economy, rather than studying separate individual units. Here, the question of interest is how can one study the structure, behavior and decision making attitude regarding the completely magnanimous economy, involving many different sectors. However, the answer to this complex question appears ...

In recent years, there has been an intensive discussion about the United States budget deficit. The economists and various observers have argued that the budget deficit has dire consequences on the United States and other economies around the world. The effects include high interest rates, low rates of economic growth and low savings. This provides the platform for economists and policy makers to find a possible lasting solution to the budget deficit. Deficit is the difference between receipts, the money the government receives, and the outlays, the money the government spends, per year. The receipts are generated through excise, ...

Introduction

Tourism in Greece is one of the most important industries which have been able to boost its national growth. The industry has been rated to contribute more than 15% of the country’s output annually making it the most popular industry. This is based on the many beaches and the Mediterranean coastline which is a geographical advantage to the country. The country which is based in Europe has a rich history as the natives have retained their culture, thus attracting tourists. This has created a base for approximately 17.5 million visitors who originate from all walks of the world (Bramwell, 2004). It ...

The history of the greet bankruptcies and loans begins in 1824 and at that moment, Greece had not been established as a state. There were two loans that were taken; one in 1824 and the other one in 1825. The first loan was worth 800,000 British pounds, but it is said that only 308, 000 pounds and the supplies of army worth 11,900 were ever given to Greece. Then, the second loan was issued for 2 million sterling pounds. It is also believed that Greece barely received 530,000 of that, as the rest of the money is ...

Introduction

The ever changing figures for U.S. national debt and largest budget items (such as Medicare (Medicaid), social security, defense (wars), presented at the website U.S. National Debt Clock, tend to grow far quicker than the figures for the U.S. federal tax and other types of revenue (U.S. National Debt Clock, 2013). Over the period between 2011 and 2013 debt-ceiling crisis reasons for the U.S. total debt appearance and growth, and the ways, which can be employed to reduce the debt, have continuously become key topics for active political discourse. This issue has become even more topical since recent U.S. ...

The economic growth of United States became even better in the 1900s which also brought about the disparity of wealth between the rich and the poor. The government and Wall Street have been working together in order to formulate laws that will favour the banks and the rich community (Penner). When there is a reduction of tax payment the rich will be able to continue investing and increasing their wealth while the poor may increase their wealth but it will not be same because they cannot afford to take risks with their wealth. The politicians also get their funding from ...

The efficient operation of a government requires that it adopts relevant mechanisms to control its national deficit. Even though the government can opt for other means of maintaining its national debt, the topic of sequestration is debated among many stakeholders in the servicing industry. The need to control the country’s debt has made sequestration a household term. The reduction in national debt requires that the national government initiates spending cuts in various categories of the federal structure. The process of sequestration relates to part of the Budget Control Act of 2011 that was scheduled to start at the start of ...

Drowning in Debt: How Does the U.S. Solve its Debt Crisis?

Scott Walterhoefer Abstract Can the United States solve its debt crisis? That is the daunting question that currently confronts our nation and the manner in which the “powers that be” attempt to deal with this problem will dictate the political and economic landscape for the foreseeable future. The sheer size of this debt (roughly $16 trillion) is so massive and seemingly out of control that it is nearly impossible to fathom. This paper will examine this debt and the factors that caused its exponential rise over ...

For many years, America’s economy was regarded as the largest and leading economy of the world. However, today it is fairly clear that the America is facing economic problems, and there seem to be no savory solutions to address these problems. Since the Second World War, the economy of the United States itself has become the greatest challenge that the country is facing today. Not only factors from within the country, but even international factors have contributed to this problem. Domestically, the financial crisis of 2008 cruelly brought the feebleness of the U.S. economy to the surface. ...

Addressing National Debt within the State of the Union

I am a full time student at the University of Miami pursuing a bachelor’s of Science degree majoring in Economics. During the annual State of the Union speech, the president shares the economic evaluation of this country, and he presents the plan that the administration wants to implement in order to reverse the economic downturn. I admit not to have been a keen follower of previous State of the Union speeches: The only existing memories bring me back to the dinner table with my family, a feast before our midst with President George Bush, Jr. on the television. I don’t remember ...

INTRODUCTION

Civil wars usually impose substantial costs on the involved countries economy. The wars are destructive to both human lives and the economic infrastructure. They also undermine the legitimacy of the state by threatening its institutions, the security of property rights, and the rule of law. Still, internal wars bringing tremendous uncertainty into the economic environment, making both public and private investments riskier. The U.S civil war was caused by several issues including regional conflicts between the North and the South, economics forces, and humanitarian concerns for the welfare of enslaved people. This war pitted both sides of the country ...

What factors led the US to follow Hamilton's vision of a market based economy over Jefferson's vision of an agrarian based society? Thomas Jefferson who was born in 1743 always favoured a strong agrarian approach in his politics. The third President of the United States is also remembered as the mastermind who negotiated the Louisiana Purchase and was also the chief author of the Declaration of Independence. While Thomas Jefferson sought about sending Lewis and Clarke on their expedition to explore the new west, Alexander Hamilton foresaw the problems with the new Confederation and saw the necessity for centralization. In ...

Outlines of the French Revolution

The Estates General The meeting by the Estates General was held for the first time in 1789 in the town of Versailles since the 1614 meeting of the French Estates General. It was an assembly that represented what was known as estates of the realm of the French. It comprised the First Estate (clergy), the Second (nobles), and the Third (it purported to represent the commoners but in essence only had the bourgeoisie). The Estates General meeting of 1789 was requested by King Louis XVI. It was held between 5 May and 23 June of that year. The ...

Introduction

Widely regarded as the author of the Declaration of Independence, Thomas Jefferson is a pre-Civil War president who is immortalized on Mount Rushmore. Jefferson had always been on the national scene serving as delegate to the Virginia House of Delegates and also serving two years as the Governor of Virginia. His national service life also saw him become America’s Minister to France after the war. While serving as the Secretary of State in Washington’s administration, Jefferson often had quarrels with Alexander Hamilton over his view on a centralized national bank. After becoming president in 1800, Jefferson made tremendous efforts ...

ABSTRACT 3

INTRODUCTION Background 4 Information Sources 4 Limitations 4 ANALYSIS Presidential Election and the Economy 5 CONCLUSION Summary and Interpretation of Findings 12

REFERENCES 13

Abstract This paper presents an analysis of the article entitled The Growth Recession of 2012 and the Presidential Election published by Forbes.com in October 2012. The purpose of the paper is to present a recently published article and provide an analysis in light of the principles and theories of economics. The discussion involves the analysis of a recent article by relating it to the theories and principles of Economics specifically ...

I am interested in writing about economic growth. This topic is so timely because the economy of US was reported to grow in the third quarter of this year. The growth in the economy was due to increases in inventories and export, thereby raising the gross domestic product to 2.7% during the third quarter. Economic growth is a very important indicator of the economy as it signifies increase in the productive capacity of the country over time that leads to increases in national output and income. It is the increase in the total output of a country over time and ...

The most recent event in the country that I can think of is the 2012 Presidential Election. What has this to do with the economy?

The most obvious connection between a presidential election and economic activity is that, if the incumbent government is eyeing for a reelection, then pre-election programs include execution of expansionary fiscal policy since such policy (either increase in spending or a tax cut) tend to increase economic growth, reduces unemployment and increases the political support for the politician. I learned that fiscal policy pertains to discretionary changes in government spending and tax collection with the goal of ...

Introduction

The Great Depression Before the Great Depression occurred, US faced an economic boom in 1920s and then there was a depression period (Iranj, 2012). In Great Depression, many companies went bankrupt. Unemployment rate was 25% in Great Depression as well and today there are a lot of states in America that are facing the problem of unemployment (David, 2011). One of the main factors the current economic crises and the Great Depression is the risky investments. Same was the case in 2008. Europe and UK also faced the similar problems. People are still in a sense of déjà-vu as ...

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 ...

According to Thoma (1), the issue of debts has become a major menace in the country. It is indicated that the national debt has gone beyond the $ 16 trillion mark, which is described as a drain to the economy. This figure trickles down to the individuals where many people tend to be in great debts that are at times quiet hard to clear. There is the need to understand exactly where the problem lies and how it can be resolved. Below is a discussion on this issue, trying to find out who or what is to be blamed when individuals get into ...

In 1929, the great depressions lead to failure and collapse of the Wall Street. The decline in the value of stocks in the stock market coupled with the failure of the financial institutions brought the American economy to its knees. The economy faced the worst level of unemployment where industries laid off massive number of workers to cut down on the total costs. The depression begun in the late 1920’s during Hebert Hoover’s reign as the United State’s president. This saw the election of Franklin D. Roosevelt as the president to succeed him and guide the ...

Government

Introduction As we approach November 6th, we are once more hearing the calls from the political activists strongly insisting on the fact that it is not only a right but also the responsibility of the Americans to vote in the approaching election. It is also the responsibility of the American Citizens to vote in for an effective government. It is very sad to see that even those voters who seem to be informed have no proper understanding of the issues that are facing our country and this puts up the question of whether we are in a good position to ...