Fiscal Policy
Fiscal Policy
ECO/372
Fiscal Policy
In the current economic recession, the United States’ fiscal policy has placed unrest and instability among the population. The positive and negative outcomes of the fiscal policy, with regard to the country’s deficit, surplus, and debt, have different effects on how many different people and organizations view the current economy, make decisions, and react to changes. The Unites States’ deficit, surplus, and debt affect not just the American tax payers but also future social security and Medicare users, unemployed individuals, students, exporters, and importers. The deficit, surplus, and debt also affect the gross domestic product (GDP) and also the United State’s financial reputation on an international level. Focus must be placed on making objective decisions that will provide both short-term and long-term benefits especially during economic uncertainty. Individual decisions during a recession has a great impact on the economy collectively; when people reinvest and increase spending in the tough economy, it can propel the economy towards the upward trend.
Tax Payers
American tax payers ultimately hold the most important part in the economy. The tax payer and the economy have a compelling role with each other and often dictate the success or failure of one another. A deficit can devalue the U.S. dollar an place a burden on the tax payers. During an economic deficit, tax payers lose because of the need for increased tax to help stimulate the economy. During a surplus economy, tax payers can take advantage of benefiting from additional capital within the economy and also benefit from a possible tax decrease. The national debt is a burden to all tax payers because of the need for increased taxation and government program reduction in an attempt to reduce the debt. Debt can also burden future generations with problem of paying back the debt.
Future Social Security and Medicare Users
Every
ECO/372
Fiscal Policy
In the current economic recession, the United States’ fiscal policy has placed unrest and instability among the population. The positive and negative outcomes of the fiscal policy, with regard to the country’s deficit, surplus, and debt, have different effects on how many different people and organizations view the current economy, make decisions, and react to changes. The Unites States’ deficit, surplus, and debt affect not just the American tax payers but also future social security and Medicare users, unemployed individuals, students, exporters, and importers. The deficit, surplus, and debt also affect the gross domestic product (GDP) and also the United State’s financial reputation on an international level. Focus must be placed on making objective decisions that will provide both short-term and long-term benefits especially during economic uncertainty. Individual decisions during a recession has a great impact on the economy collectively; when people reinvest and increase spending in the tough economy, it can propel the economy towards the upward trend.
Tax Payers
American tax payers ultimately hold the most important part in the economy. The tax payer and the economy have a compelling role with each other and often dictate the success or failure of one another. A deficit can devalue the U.S. dollar an place a burden on the tax payers. During an economic deficit, tax payers lose because of the need for increased tax to help stimulate the economy. During a surplus economy, tax payers can take advantage of benefiting from additional capital within the economy and also benefit from a possible tax decrease. The national debt is a burden to all tax payers because of the need for increased taxation and government program reduction in an attempt to reduce the debt. Debt can also burden future generations with problem of paying back the debt.
Future Social Security and Medicare Users
Every
References: Colander, D. C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw-Hill/Irwin.