Econ 1000 Chapter 12 Summary

Econ 1000 Chapter 12 Summary

 Every year, policies and programs seem to cost us, the taxpayer more money. The budget process is very in depth and without a budget, nothing gets done. These budgets have direct impact on an economy. The growth of the budget of the United States over the last half-century is mind boggling. The fastest growing areas of the federal budget are programs such as unemployment compensation, Medicare, and social security. These programs are helpful to our economy but are increasing the nation’s deficit. Who is effected by this deficit? Our children and grandchildren when they grow up and become tax payers. The budget is needed because in my opinion we would be worse without but the deficit needs to be addressed. The high level of disappointment and frustration is reflected by the public’s reactions and is talked about in almost every debate. Washington’s politicians are dealing with are debt and deficit but the solutions are actually increasing it. It like paying off one credit card with another. The money has to come from somewhere but at the same time Americans are resistant on the sacrifices that would be required to achieve a solution. We don’t want higher price levels and taxes because of the effect it will create on our consumption that we have grown accustomed too. The government can’t just create more money to pay off their debts because that increase inflation and reduces the value of our dollar. Overall this is a complex subject and this chapter could be expanded on extensively but the bottom line appears to be that if the deficit and related entitlement programs are to be addressed, it may well have to be in spite of public opinion, not in response to it.

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