Fiscal Policy Paper
Fiscal Policy
ECO/372
University of Phoenix
Fiscal Policy
The United States’ economy has gone through many different stages from deficits and surpluses to a large debt. These can affect people in many ways. This paper will cover the United States’ deficit, surplus, and debt and how it affects taxpayers, future Social Security and Medicare users, unemployed individuals, University of Phoenix students, the United States’ financial reputation on an international level, a domestic automotive manufacturing exporter, an Italian clothing company importer, and the Gross Domestic Product (GDP).
Tax Payers
The United States’ deficit, surplus, and debt effect taxpayers greatly. The deficit affects taxpayers because when the country is running a deficit, it means that the supply of money is low. The taxpayers are then called upon to lessen the low supply of money that the government uses to run. A surplus affects taxpayers because even though the country may be running a surplus and taxes decrease, they are still there. The citizens of the country will still be required to pay taxes even if there is a surplus. The country’s debt affects taxpayers the most because it is the tax revenue that is used to pay off the debt that the country has gotten itself into. Future Social Security and Medicare Users
The future Social Security and Medicare users will be impacted by the United States’ deficit, surplus, and debt. The United States’ surplus can be beneficial for the future of Social Security and Medicare because it provides additional funds into the funds that are already available. However, this is not the same with the deficit and the debt. As the deficit and the debt increases, more funds are borrowed from these trust funds, which are eliminating any surplus. Before long, funds for Social Security and Medicare will be exhausted, and the programs will no longer be able provide help to the disabled and elderly.
Unemployed Individuals
The United States deficit,
ECO/372
University of Phoenix
Fiscal Policy
The United States’ economy has gone through many different stages from deficits and surpluses to a large debt. These can affect people in many ways. This paper will cover the United States’ deficit, surplus, and debt and how it affects taxpayers, future Social Security and Medicare users, unemployed individuals, University of Phoenix students, the United States’ financial reputation on an international level, a domestic automotive manufacturing exporter, an Italian clothing company importer, and the Gross Domestic Product (GDP).
Tax Payers
The United States’ deficit, surplus, and debt effect taxpayers greatly. The deficit affects taxpayers because when the country is running a deficit, it means that the supply of money is low. The taxpayers are then called upon to lessen the low supply of money that the government uses to run. A surplus affects taxpayers because even though the country may be running a surplus and taxes decrease, they are still there. The citizens of the country will still be required to pay taxes even if there is a surplus. The country’s debt affects taxpayers the most because it is the tax revenue that is used to pay off the debt that the country has gotten itself into. Future Social Security and Medicare Users
The future Social Security and Medicare users will be impacted by the United States’ deficit, surplus, and debt. The United States’ surplus can be beneficial for the future of Social Security and Medicare because it provides additional funds into the funds that are already available. However, this is not the same with the deficit and the debt. As the deficit and the debt increases, more funds are borrowed from these trust funds, which are eliminating any surplus. Before long, funds for Social Security and Medicare will be exhausted, and the programs will no longer be able provide help to the disabled and elderly.
Unemployed Individuals
The United States deficit,
References: Colander, D. C. (2010). Macroeconomics Boston, MA: McGraw-Hill/Irwin. (8th ed.). Retrieved from The University of Phoenix eBook Collection database. Scott, R.E., Wething, H. (January, 2012). Economic Policy Institute: Trade and globalization. Retrieved from http://www.epi.org/publication/bp336-us-china-auto-parts-industry. Dr. Dutta, S. (2013). University of Phoenix: College for financial planning - report on the financial crisis. Retrieved from http://www.phoenix.edu/tuition_and_financial_options/financial_information/financial_articles.html. U.S. Economy (2013). Retrieved from www.useconomy.about.com.