Federal Reserve

Topics: United States public debt, United States, Macroeconomics Pages: 3 (924 words) Published: February 6, 2013
Fiscal Policy
Team E
Eco/372 Macroeconomics
February 7, 2013
Frank Vigil

Fiscal Policy
This paper provides discussions among the learning team members on The United States deficit surplus and debt. The team will discuss how U. S. deficit surplus and debt have an effect on 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 GDP. Taxpayers

The Government takes in revenue through taxes; they run a budget surplus and other sources that they spend. The federal government runs on a budget deficit every year and surplus has to do in part with how the government policymakers use the funds. Congress has intentions to balance the budget but lawmakers have not done nothing more but control future spending. Tax reduction is known to be the better option to surplus tax revenues returned to taxpayers. Future Social Security and Medicare Users

Medicare spending has increased and health care cost have maintained at the same level. Social Security has and is still running a surplus of millions of dollars. The Social Security is allowed to spend what it receives from tax revenues. Trust fund available are only from past surpluses, one left large enough to last through a peak of retired baby boomers. The budget deficit would increase if Congress changed the law and turn only to general revenues to pay promised benefits. University of Phoenix Student

When government deficit increases so does debt resulting in high interest rate. Mainly students rely on federal loans rather than private loans because of the low interest rates and flexible repayment terms. The United States deficit could affect college students because it causes high interest rates. Consequently, students face problems repaying the loans. Surplus decreases debt that is...
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