\n Deficits And Public Debt\n <\/p>\n
\n Students:\u00a0 the Keynesian model concluded that government spending and taxation can be used to stimulate a recessionary economy and also use the same tools to slow demand during an inflationary period.\u00a0 This model suggests that the Federal government has, not only the ability to counter extreme business cycles, but also the responsibility to do so.\n <\/p>\n
\n Ultimately, the application of macroeconomic principles can only be done in the political arena.\u00a0 This is the primary reason why one cannot separate economics from the political process.\u00a0 Inevitably, the very divergent opinions that emerge from each party are confusing at best\u2014especially as it relates to deficits and public debt.\u00a0 As citizens and voters it is our responsibility to inform ourselves as best we can although it can be, and usually is, confusing.\n <\/p>\n
\n We are at a very critical juncture in our country as we ponder how to best deal with the many economic problems that we face.\u00a0 The similarities to the late 1920s and the beginning of the great depression are many and ominous.\u00a0 Then, as now, there were fairly distinct choices\u2014do nothing and hope that things get better, use government spending as a way to stimulate spending in our depressed economy, or conclude that balancing the budget will solve all problems.\u00a0 Then, as now, the argument between Democrat and Republican was heated and divisive.\u00a0 In recent years, the argument has focused on debt with conclusions that reducing federal debt would solve many of our economic problems and begin to reduce unemployment.\u00a0 With the passage of the new tax changes in 2017, and the increases in Federal spending, this logic has taken a new (but somewhat familiar turn).\u00a0 The conclusion that lower taxes will increase employment levels and ultimately result in more revenue for the Fed. brings us back to supply-side (trickle-down) economics and a different model.\u00a0 Presently, it appears that lower taxes and increased spending is resulting in a rapid increase in the deficit and public debt.\u00a0 The debate rages.\n <\/p>\n
\n Without question, the Coronavirus has had a tremendous impact on the way that we look at the budget (and debt) question.\u00a0 We have seen a significant short term increase in public debt as we have attempted to respond to this crisis.\u00a0 As has been our tradition, we have turned to the Federal Government for solutions.\u00a0 There are simply no other entities in our system with enough power to deal with the magnitude of this issue.\n <\/p>\n
\n This assignment is similar to the last.\u00a0 Please answer (thoroughly) the questions that I have posed, and use those opinions for your group discussion.\u00a0 I am asking for your opinion on these questions– but informed opinions.\u00a0 As was the case with each Discussion Board every opinion is to be respected and email communication should reflect that.\n <\/p>\n
\n The same grading guidelines will apply as with the previous discussion boards.\u00a0 Remember, the assignment is to communicate thoroughly and in organized fashion, your point of view.\u00a0 Just putting words to paper does not mean that it meets these objectives, so think about what you are attempting to convey.\u00a0 The same thing applies to your responses to others.\u00a0 \u201cI agree\u201d, or \u201cI disagree\u201d is not a thoughtful and helpful comment.\u00a0 As usual, see the grading criteria posted in \u201cdiscussion information\u201d for more specific instructions about the assignment\u2026the same timelines are to be used with the major paper posted at least 3 days prior to the closing date for the assignment.\n <\/p>\n
\n QUESTIONS\n <\/p>\n
\n 1.\u00a0\u00a0\u00a0\u00a0 How serious is the public debt situation in the USA?\n <\/p>\n
\n 2.\u00a0\u00a0\u00a0\u00a0 If we paid off the debt would that solve most of our other economic problems, such as unemployment?\n <\/p>\n
\n 3.\u00a0\u00a0\u00a0\u00a0 How should we approach balancing our budget\u2026spending cuts only; tax increases only; a combination of the two?\n <\/p>\n
\n 4.\u00a0\u00a0\u00a0\u00a0 Should wealthier citizens pay a larger percentage?\u00a0 How do you see our current tax policy relating to the deficit\/debt situation?\n <\/p>\n
\n 5.\u00a0\u00a0\u00a0\u00a0 Why has concern about the debt suddenly become such a major political issue?\n <\/p>\n
\n 6.\u00a0\u00a0\u00a0\u00a0 Do you agree with the Keynesian Model\u2026does government have the responsibility to try to maintain a stable economy?\n <\/p>\n
\n 7.\u00a0\u00a0\u00a0\u00a0 If you were an economic consultant, what would you recommend to deal with the unemployment problem?\u00a0 Do we still have an unemployment problem?\n <\/p>\n
\n 8.\u00a0\u00a0\u00a0\u00a0 The Tea Party suggests that eliminating most of government and balancing the budget would solve most\/all of our economics problems.\u00a0 Do you agree or disagree.\u00a0 Why?\n <\/p>\n
\n 9.\u00a0\u00a0\u00a0\u00a0 How does economic growth impact the size of our debt.\u00a0 How do the Democrats compare with the Republicans relative to growth and relative prosperity.\n <\/p>\n
\n 10.\u00a0 What are the similarities between personal and public debt\u2014the differences?\n <\/p>\n
\n 11.\u00a0 How has coronavirus pandemic impacted our view of public debt?\n <\/p>\n
\n 12.\u00a0 How does the USA compare to other developed countries when you look at debt as a percentage of GDP.\u00a0 Does that percentage predict economic growth and development?\u00a0 See Economist Global Debt Clock, below.\n <\/p>\n
\n Video:\n <\/p>\n
\n http:\/\/www.pbs.org\/wgbh\/pages\/frontline\/tentrillion\/view\/\n <\/p>\n
\n Wessel, Red Ink, PBS\n <\/p>\n
\n https:\/\/www.bing.com\/videos\/search?q=wessil%2c+red+ink%2c+video%5c&docid=608018729076065028&mid=6EA73A9678E3B5FEE28E6EA73A9678E3B5FEE28E&view=detail&FORM=VIRE\n <\/p>\n
\n youtube.com\/watch?v=iUTMKnjZplY\n <\/p>\n
\n ARTICLES\n <\/p>\n
\n http:\/\/www.economist.com\/node\/21564410\n <\/p>\n
\n http:\/\/www.npr.org\/templates\/story\/story.php?storyId=99927343\n <\/p>\n
\n Krugman:\n <\/p>\n
\n http:\/\/krugman.blogs.nytimes.com\/2016\/10\/22\/debt-diversion- 159561&ref=headline&te=1\n <\/p>\n
\n The Economist\u2014The Global Debt Clock\n <\/p>\n
\n https:\/\/www.economist.com\/content\/global_debt_clock\n <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
Deficits And Public Debt Students:\u00a0 the Keynesian model concluded that government spending and taxation can be used to stimulate a recessionary economy and also use the same tools to slow demand during an inflationary period.\u00a0 This model suggests that the Federal government has, not only the ability to counter extreme business cycles, but also the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/253056"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=253056"}],"version-history":[{"count":1,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/253056\/revisions"}],"predecessor-version":[{"id":255558,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/253056\/revisions\/255558"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=253056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=253056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=253056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}