America’s Fiscal Policy

The American economy is grounded and influenced by what is called fiscal policy.  Fiscal policy is where the government collects revenues through taxation and spends money through expenditures to generate a stable economy.  The American economy, however, is threatened by a national debt that is over $18 trillion.  How did this occur?  It did not happen overnight.

One can make the argument that the government does not tax enough to generate revenue.  Others might disagree.  On the expenditure side, some have argued that the American economy is in disarray due to the government spending too much money.  There are those, though, who believe that the government does not spend enough money to help create a stable economy.  Where do you stand on the issue?

For more insight, please visit this site.

The Nation’s Most Pressing Issue

Cyprus and the United States

Sequestration

Lately, you might have heard the term, “sequestration” in the news.  You might also be asking yourself, “What is sequestration?”  Sounds like a serious term.  It is a serious term and the act itself will have serious consequences on the nation’s economy.  In simple terms, sequestration is the act of instituting automatic spending cuts to the nation’s budget.
Sequestration takes places when a Congressional spending cap has already been reached.  Once the budget cap is surpassed, then sequestration is implemented.  The problem?  Congress has avoided sequestration by constantly raising the budget caps that they already put into place.  This is not how you are supposed to avoid sequestration.  If Congress would stop the rate of spending, then they would not have to implement automatic budget cuts. Avoiding sequestration in this fashion only causes more of a spending problem in the United States, and also adds more to the nation’s debt.
If you were in Congress and sequestration was put into place, what program, either foreign or domestic, would you automatically cut from the nation’s budget?

America’s Fiscal Policy

The American economy is grounded and influenced by what is called fiscal policy.  Fiscal policy is where the government collects revenues through taxation and spends money through expenditures to generate a stable economy.  The American economy, however, is threatened by a national debt that is over $18 trillion.  How did this occur?  It did not happen overnight.

One can make the argument that the government does not tax enough to generate revenue.  Others might disagree.  On the expenditure side, some have argued that the American economy is in disarray due to the government spending too much money.  There are those, though, who believe that the government does not spend enough money to help create a stable economy.  Where do you stand on the issue?  Leave comments after the poll as well to defend your response.

For more insight, please visit this site.

The “Fiscal Cliff”