This website uses cookies to ensure you have the best experience. Learn more

Economic Policy Essay

1239 words - 5 pages

ECONOMIC POLICY

KEVIN BROWN

PSC-142

The national debt is at an astonishing 15 trillion dollars and has rapidly grown since the early 90’s. The national debt grows at a rate of 4 billion dollars a day since 2007 and each citizens share is around $48,000. (Hall, 2011) Even though are national debt is not something that most people worry about in our nation, it is very important to maintain and limit. Our government borrows money from other countries to support our programs, such as social security and welfare and that is causing our debt to raise continuously, our government hit its debt ceiling in the beginning of the summer. The government ...view middle of the document...

That move led to an ever rising deficit. With the wars in Iraq and Afghanistan have the government has spent over 500 billion dollars during the Bush administration and hit a trillion dollars in 2010 (Wright, 2008). When the government increases spending and doesn’t correspond that with tax increases the deficit will grow significantly. The government did manage to hit surplus during the Clinton administration, but focus was changed and deficit began increasing when he left office and Bush took over.
The current deficit in 2011 is set to surpass the total size of the economy in record with the U.S. surpassing the record national debt at almost 16 trillion dollars and Obama has a new plan to focus on leveling out the economy with a budget (Dinan, 2011). I believe that the government is obviously not performing well in area of economic policy because of the casual growth we have seen the last decade or two. The government is not completely to blame though. Citizens need to have a better understanding of the way economic policy works so they can perform the necessary functions and keep the government in check when they make big financial decisions. Vast majorities of American’s know that the national debt is a problem that should be addressed if we want our country to consistently grow economically and that if we continue to increase our yearly deficits and national debt that we will slow economic growth significantly. In a recent poll, 89% of American’s believed the debt ceiling should not be raised, but contradicted themselves in another poll with a majority of American’s wanting increase spending to jumpstart the economy (Wright, 2008). The problem is not with the intent but with the strategy.
The government’s spending will need to be controlled and minimized in order to ensure our country has a chance to make it out of the current economic situation. Obama’s new budget puts a lot of hope in that the economy will catch a big boost after the few sluggish years we have had by paying off what we take out in succession in order to stabilize the deficit (Dinan, 2011). Possible flaws and contrary beliefs are pointed out in an article by The Washington Post by the Congressional Budget Office “the recovery could have other, less-beneficial effects, including higher interest rates. The government currently is benefiting from rates that are a fraction of their historic level, which means substantially lower borrowing costs for corporations and individuals, lawmakers said those low interest rates can’t last (Dinan, 2011).” The Obama administrations plan is borrowing more money, which is something other...

Other Essays Like Economic Policy

Macro Economic - The State Bank of Vietnam a snapshot of monetary policy during 2011 – 2013 in reviews

2472 words - 10 pages The State Bank of Vietnam   a snapshot of monetary policy during 2011 – 2013 in reviews    ABSTRACT:  Using the data and analytical works collected from a public domain which including printed and  online newspapers, financial magazines and public reports  on the monetary policy of the State  Bank of Vietnam during 2011 to 2013, this study provide a snap‐shot of theÂ

China's Birth Control Policy Essay

742 words - 3 pages new birth control policy. But generally, it is obvious that the new China birth control policy is adjusted more to modern society than the old China’s birth control policy. The old policy caused some social problems. It restricted economic development. And the new policy could solve some social problems which the One-child Birth Control Policy caused. The One-child Birth Control Policy caused some social problems like sex ratio imbalance and

One Child Policy Interview

1821 words - 8 pages consider some negative issues which the policy causes, including nature balance, human right problems, and socio-economic influence. These three main problems puzzle not only the governor of China, but also the experts who are working on it. They should find the balance point between China’s large of population and these troublesome problems. Firstly, many social sciences experts focus on the nature balance problems. “The one-child policy is

Fiscal Policy

562 words - 3 pages Fiscal Policy 1. Meaning of Fiscal policy Fiscal policy refers to the way government utilizes taxation and spending with the aim of influencing the overall economy. Usually, the government use fiscal policy to ensure strong and sustainable economic growth and reduce poverty (Horton & El-Ganainy, 2009). The function and objectives of fiscal policy have increasingly gained popularity in the current financial crisis as most governments

Federal Reservce and Monetary Policy

930 words - 4 pages monetary policy allows us to see how the Federal Reserve uses their tools to maintain and control monetary policy. The Federal Reserve Bank is consistently reviewing our economic stability and making necessary changes to the monetary policy in an effort to stabilize funds and promote economic growth. The Federal Reserve has recently taken specific actions to help rebuild our current economic strength, which was established in their most recent

Australian Economic Policies

2744 words - 11 pages . The first priority for a government in managing an economy is to determine what it will pursue as its economic objectives. Governments can choose to pursue a range of policy aims, and over time determining priorities.There three main objectives in economic management: Economic Growth is one objective, which is an increase in the level of goods and services produced in an economy; this raises living standards of individuals in the economy.Internal

Fiscal Policy

1789 words - 8 pages Note on Fiscal Policy What is Fiscal Policy? The government’s handling of its own spending, taxation and government borrowing are the key components of fiscal policy. Fiscal policy involves the use of government spending, taxation and borrowing to influence both the pattern of economic activity and also the level and growth of aggregate demand, output and employment. A rise in government expenditure, or a fall in the burden of taxation

Public Policy

1493 words - 6 pages elites, rather than elite values being influenced by the sentiments of masses; and for the most part, communication between elites and masses flows downward. 7. PUBLIC CHOICE THEORY: POLICY AS COLLECTIVE DECISION MAKING BYSELF-INTERESTED INDIVIDUALS Public choice is the economic study of non-market decision-making, especially the application of economic analyses to public policymaking. Traditionally, economics studied behavior in themarketplace and

Schools as Organizations

2503 words - 11 pages entry from school on the basis of race, colour, nationality, ethnicity, origin, religion, belief, gender, sexual orientation, disability, socio-economic background, living situation . * Valuing Diversity in Families Policy: Welcome the diversity of families to work together. Develop plans to ensure full inclusion of families with different language. * Nutrient and Dietary needs Policy: Work in partnership with families to ensure the

Indian Economy Update

654 words - 3 pages  of key sectors for Copper 10.0% Speedy implementation of big‐ticket economic  reforms such as – • National Manufacturing Policy,  • National Electronics Policy,  • Land Acquisition Bill and  • GST  8.4% 12% 10% 8% 6% 4% 2% 0% 1,000 • Challenge is to balance growth and manage inflation • Structural reforms and policy intervention by government will help 9.6% 1,500 USD Bn • Growth has been impacted by

Comparison of Inflation, China and the Us

1919 words - 8 pages economy is recorded as one of the strongest and fast growing economy in the world. In the last two decades, the economy has recorded a fall in unemployment and economic growth, but inflation persists. With the economy, engaging in vigorous policy and structural reforms, the economy has turn out to be resilient, flexible and well integrated within worldwide markets. The main objective of the Chinese government is to keep inflation as low as

Related Papers

Economic Policy Essay

2418 words - 10 pages EC3010 - Economic Policy Assignment 1 The nature of the ongoing financial crisis merely confirms what Economists have known for some time, namely, that the interconnectedness of global economic activity renders macro-management by single governments redundant. Their function is now to regulate markets to ensure economically efficient solutions. Module Leader :Paul McKeown Student Name: Chen JiaHui Student number: G20555142

International Economic Policy: Book Review

1161 words - 5 pages International Economic Policy: Book Review The book reviewed in this essay, International Economic Policy in the 1990s, was to focus on some of the most recent concerns about international trade. Its author, William R. cline, seems to have some good insights about the topic as it seems that he researched, taught and lectured about this field of study. The author tried to be as objective as possible and tried not to be biased by referring to

Effective Economic Consideration For Worldwide Sustainable Environmental Policy

1455 words - 6 pages  Effective economic consideration for worldwide sustainable environmental policy One huge impact that imposes on the global environment is the action of trade, a human interaction involving goods, natural resources and materials. Sustained networks and economies providing financial gain and satisfying the demands and needs and desire of human nature. Exploitation of finite resources with uncertain consequence or reaction over the

Overall Monetary Policy Of The Government And Its Impact On The Macro Economic Objectives

1202 words - 5 pages Overall Monetary Policy of the Government and its Impact on the Macro Economic Objectives 1. Introduction to the Monetary Policy The Monetary Policy of any country is an important one, as it defines the role and establishment of a central bank within a country and through it attempts to regulate and manage the money supply within an economy in order to achieve specific goals such as Constraining Inflation or Deflation