Budgeting the Economy Essay

735 WordsJun 13, 20123 Pages
Budgeting the Economy Tracy Suggs ECO203: Principles of Macroeconomics Kristian Morales October 3, 2011 Budgeting the Economy We can begin by learning the difference between debt and deficit. Deficit means a shortfall in revenue of a fiscal year. It is the government’s revenue called receipts which are collected taxes from different places. Debt means am accumulation of deficits so the national debt is the total amount of money owed by the government. In order to get the debt you must calculate it by adding the deficits minus the surpluses since the nation’s inception and you get the current national debt. The United States has a history of unusual concern about federal budget deficits. Some nations generally has not shown similar levels of concern even when they have had comparable budget deficits or outstanding national debt to the economies. There are issues that are to be concerned about debt and deficits. The first issue to be concerned about is unduly benefiting current generations at the expense of future generations. The second issue is what macroeconomics effects what deficits generally have. The third issue concerns their effects on the size of the national government. The discussion has been limited to fiscal policy which concerns cash flows to and from the government. Cash transactions represent only a part of the government activity. The in kind benefits from government spending and the various benefits and burdens results from the government regulations are similar I the principle to cash subsidies and tax levies. Does tax lag actually have the generational, macroeconomics and the size of government effects have been attributed to the budget deficits? The United States Federal Budget is the fiscal year difference between what the United States Government takes in from the taxes and the other

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