Farrah Jawaheer
America is known as one of the most financially sound countries out there. But when the things started to take off and America started to build up debt the term fiscal cliff appeared. Who actually uttered the words "fiscal cliff" is not clear (Smith). Some believe that it was first used by Goldman Sachs economist, Alec Phillips. Others credit Federal Reserve Chairman Ben Bernanke for taking the phrase mainstream in his remarks in front of Congress. Others credit Safir Ahmed, a reporter for the St. Louis Post-Dispatch, who in 1989 wrote a story detailing the state's education funding and used the term fiscal cliff (Smith).
The fiscal cliff is known as a combination of expiring tax cuts and across - the -board government spending cuts that became effective Dec. 31, 2012. The fiscal cliff in regular terms is a combination of planned government spending cuts and tax increases, which take place in the future because temporary financial law has ended (Nitti). This should be considered a good thing because the government is generating more tax revenue while cutting spending. In the Bush administration, the fiscal cliff was able to save people about 10% of there paycheck due to tax cuts (Calmes). But even though the American people would enjoy temporary short-term decreases in deficit (the amount of something especially a sum of money is too small), the combined effect of the tax increase and reduced government spending will result in a huge fiscal contraction (Nitti). This would mean a decrease in GDP (gross domestic product), and increase in unemployment (Calmes). This is an issue because even though government spending would be down for a while the repercussions for the American people would be greater (Tuchman). ...
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...fourth quarter of 2013 (Gravelle 40). This would not be good for the American people this could put us back into a recession. If the U.S. national debt continues to explode eventually, when the Federal Reserve raises interest rates to prevent inflation, the rising interest rates will greatly increase the interest component of the federal budget. So even though in the beginning there might be tax cuts and the people would be fine for a while. The outcome in the future is worse and would completely negate the good that was done. So America should definitely take interest in the damage the fiscal cliff could cause.
All in all the fiscal cliff is something that will always be controversial. There are benifical parts to it and non- benifical parts. Weather or not it is severly damaging to the economy is yet to be seen. But for now the fiscal cliff is here to stay.
Allowing market participants to begin putting their resources back to work in areas they’d be most beneficial. President Obama’s fiscal responsibility summit last February indicated that he understood the urgent need for fiscal discipline. Congress’s enactment of the American Recovery and Reinvestment Act and President’s proposed budget makes the goals of a sustainable budget and addressing nations longer term fiscal priorities, such as entitlement liabilities, even more elusive. The administrations recently released midsession reviews from the office of management and budget that over the next 10 years the accumulated deficits will total $9 trillion which means that the debt held by public will be a staggering 77% of GDP in 2019. If the debt level continues to grow faster than our economy, the US will owe more than it makes.
The US has been in and out of debt countless times throughout history, going as far back as the Civil War. However, debt did not become a truly relevant problem until much later, in the 1980s (Budget Deficits). Up to that point, large budget deficits were generally only allowed during wartime, but this pattern ended after the Great Depression. Roosevelt’s New Deal meant that the government spent much more than it previously did, even after the economy improved (Budget De...
Foster care purpose is to provide temporary housing for children who have been removed from their home due to neglect, abuse or any other act that deemed the home or parent unfit. Not only does a human service workers work provide counseling for children that have been placed in foster care, but it is also important for them to work with the biological parents and provide support to the foster parents. You mentioned in your post that clients must be fully engaged in order to receive a positive outcome. Biological parents must be willing to receive all the resources available from human services specialist in hopes to be reunited with their child and prepare them for the transition and immediately placed back in the home. Achieving
...h; they have to think about the cause and effect of the situation. Most people are just very concerned that this tax is going to break them, which may be true because the dollar they pay everyday for a month could add up to 60 dollars; that 60 dollars can go towards groceries, or gas.
The U.S budget deficit over the years has been a problem but lately the deficit has shrunk. However, what made the U.S budget deficit get to where it is today and what will it be like in the years to come. Throughout the past the U.S has operated under a deficit. This means that the U.S Spent more money than it was taking in. The cause of the excess in spending was different depending on which year. Some of the causes were war, increase in spending , and economic downturns. There were different acts passed to try and control the deficit problem. The deficit at the present time is declining. This decline is due to the improving economy, sequester, and a tax increase on high-income households. The big factor that went into the decline in the deficit for 2013 was the payment that Fannie Mae and Freddie Mac made. The deficit decline in the present time may make some think the U.S could get out of debt but it has been projected that the U.S deficit will start to increase once again.
Many United States' citizens are unaware of the country's current financial state. Many assume that one of the world's wealthiest countries could never be in debt. This is untrue however, and, in fact, the country with the greatest income per capita is in major debt. This study will examine possible solutions to reducing the United States' national budget deficit.
One it is an old age insurance. Next, it provides public assistance to the needy, aged, blind, and their families. In addition, it provides unemployment insurance and compensation. However, before or close to 2030 Social Security will need a policy change due benefits running out. When the government collects taxes and spends the funds on various programs this is part of the fiscal policy. When the government is able to spend within its budget it is for the good of the American people. However, when the government spends over the budget, is unable to raise taxes, and spends beyond the fiscal budget. The country falls into a budget deficit. When this happens, prices rise and the cost of inflation goes up.
Its official; Americans are going to be paying less in taxes to the federal government. In a ceremony staged in the East room of the White House President Bush signed the third-largest tax cut in U.S. history into law. Will this tax cut actually help the economy? Bush says it will. He claims, "this legislation is adding fuel to an economic recovery" (Benedetto). Bush hopes the massive $350 billion tax cuts will create jobs and heal the fraught financial system. Despite his optimism, Bush has many foes pointing out the rumored flaws in tax cuts. Democrats in congress, as well as some Republicans, are in strict opposition of the bill. They claim it will only worsen the stressed economy and leave families in the low-income tax brackets behind. Frankly, both the opposition and proponents of the bill are correct. The tax cut will, in some ways, help the economy and create jobs, but it also will pad the pockets of the rich while failing to acknowledge the plight of low-income families.
This component is a good way to cut down on discretionary spending and save the country billions of dollars but it will a lot hurt the economy in a lot of ways. We need to elaborate on the reform, and not completely ignore the reform like Obama has been doing for the last three years.
...g the deficit. As you can see, it would also cause our immigration problem to either go away or make it harder for employers to employ undocumented workers. It could even make illegals leave the country all together. This great tax proposal would make our education system stronger and the future of our youth stronger. So when is this tax proposal going to make it to the congressional floor? Well, to answer that, maybe never or maybe when our representatives’ congress gets out of the old way of thinking and are open to trying new things. Maybe or maybe it is when it does not hurt their wallets as much. Maybe it is when we the people of the United States of America stand up and say with a united voice, it is time for a change, because we are tired of having a recession every ten years or less. What do you think? Here is the real question: What will you do about it?
...hill meanwhile in Washington, the debt is becoming an uncontrollable burden. America will fall into a time of no economic benefit, and extreme political conflict, ruining the even slightest chance on economic growth (Greenwhich1).
“The Budget and Economic Outlook : Fiscal Years 2010 to 2020.” Congress of the United States
The United States economy is racing ahead at dangerous speeds, and it may be too late to prevent the return of widespread inflation. Ideally the economy should move ahead gradually and grow at a steady manageable rate. Mae West once stated “Too much of a good thing can be wonderful” and it seems the U.S. Treasury Secretary agrees. The Secretary announced that due to our increasing surplus and booming economy, instead of having an outsized tax cut, we should use the surplus to further pay down the national debt. A tax cut, though most Americans would favor it initially, would prove counter productive. Cutting taxes would over stimulate an already raging economy, and enhance the possibilities of an increase in the rate of inflation. Paying off the national debt would actually help lower interest rates and boost investments, and therefore further increase the wealth of the population, while keeping inflation at bay.
The federal budget is known as the notorious economic tank from which money is distributed to various programs. The money used every fiscal year, which begins October 1st and ends September 30th the next year, belongs to the people. The government raises this money through taxes and they spend it on national defense, Medicare, and social security. The federal budget is an exercise in making choices, and those options will certainly affect individuals living in the U.S. These choices cause debt to pile up on the government, who is struggling to make it disappear. The deficit and debt of a government gauges how well it is being run and how well it has been run in the past. According to The Economist the national debt is the total outstanding borrowing of a country’s government; it is an accumulation of deficits that has yet to be paid off (Economist, A-Z). The current U.S. federal deficit, as of the 2013 fiscal year, is a monumental $680 billion dollars, adding to an even higher debt. Any attempt to diminish this debt has the consumer footing the bill, but there has to be a different way. There have been requests to increase taxes, to raise revenues for transportation infrastructure, to restrategize the military force or to make defense more affordable (“15 Ways to Rethink the Federal Budget”, Brookings).
The debate ended with an agreement to extend the budget until January and the debt limit until February (United). The shutdown caused the Republicans to lose approval with Americans and the Democrats lost approval over the budget issues (United) The crisis is not over, it has just been postponed. The problem is that all of this debt has to be paid back. Where will the money come from? The nation was experiencing a surplus in 2000, but several factors including increased defense spending created a deficit (Stone 242).