...Fiscal Policy Paper Deficit can affect multitudes while a surplus creates positive results for those on the receiving end. A debt requires the liability to be paid or the liability may be repossessed or rendered bad credit to the individual. While Americans face issues with debt, surplus, and even deficit it is important to know that the United States deals with it first hand as well. Several areas the three topics affect include tax payers, unemployed, Social Security, Medicare, imports, exports, and the GDP. A synopsis of Team B’s discussion of the topics follows. Tax Payers Taxes are imposed on the United States by three categories; federal, state, and local government. Tax payers are taxed on their income, payroll, property, sales, imports, estates and gifts, as well as various fees. Tax payers are required to file tax returns whether it be for a business, corporation, or individual. Tax payers are affected by the U.S. deficit when there is a shortfall in revenue which is the result from the National Debt increasing. Additionally when there is a surplus tax payers are affected as well. Future Social Security and Medicare Users Social Security Administration figures that by the year 2040 the SS trust fund will be used up causing utilizing one of three options: borrowing, increasing revenue, or lowering benefits. The Medicare program is estimated to be much closer to crisis than the SS trust fund. In contrast to current Medicare and Social Security benefits budget...
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...Running Head: FISCAL POLICY Fiscal Policy Paper ECO/372 September 1, 2012 The team has learned that deficits, debts, and surpluses are accounting measures. There are many things to consider as important whether a budget is in surplus or deficit. The true importance is the health of the economy. The state of the economy needs to consider when to make a decision about whether deficits or surpluses are beneficial for the United States. Taxpayers have implemented how their money is in use when paying off deficits and how surpluses are in use to give back to the country. Debates of how taxpayers should use their money extremely important on how it affects deficits, debts, and surpluses. One debate is about how concerned an individual should be about deficits involves the future of the Social Security System and Medicare users. Unemployed individuals depend on these types of benefits and the number of users affects the accounting measures. To discuss the United States deficit, here are some examples of opinion from a University of Phoenix student. In addition, part of our discussion will illustrate the United States financial reputation on an international level. This will include an example of importer and exporter. Our team will give an example of an (importer) an Italian clothing company and for an (exporter) a domestic automotive manufacturing. Understanding accounting measures involves the health of the economy, which can be...
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...The United States federal deficit is continually contracting or expanding depending on how expenses paid match up to incoming revenues. A government policy which implements either expansionary or contractionary policies greatly influences the size of the deficit as well as any surpluses gained. Because deficits and surpluses are such an integral part of our economy, the way they affect almost every sector of our lives can be far reaching and long lasting. In this paper we will evaluate some general side effects of having either a surplus or a deficit and how they affect specific areas of our lives. Taxpayers If the economy is in a recession, taxpayers have a budget with minimal amount of money to spend on goods or services. The tax rates change because of the number of employed individuals working in a year. If the economy is going through an inflation period, the government has options for those extra funds. One option, if the government has run budget deficits in the past, is to use surplus funds to retire the debt accumulated from those deficits, as Mankiw discusses in his book (Hall, 2012.) Another option is for some of the money to be given back to the taxpayers for boosting the economy with purchases of merchandise for households. A third option for the government would be to direct the surplus funds toward other spending, such as improved infrastructure, new domestic programs or additional defense spending (Hall, 2012.) Future Social Security and Medicare Users Taxpayer...
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...United States Deficit, Surplus, and Debt ECO/372 United States Deficit, Surplus, and Debt In the United States, the deficit, surplus, and debt of the nation have an effect on many aspects of the nation’s economy. Taxpayers carry heavy burdens, both today and in the future, to support the economy as it recovers from a recession. Future Social Security and Medicare users face uncertainty and possible poverty as current negative cash-flow eats away at the integrity of future Social Security and Medicare. The effects of a high unemployment rate create a ripple effect that certainly will reach into the economy of coming years. Gross Domestic Product is affected as international trade and deficit fluctuate with the country’s interest rates, inflation, and dollar buying power. Even University of Phoenix students see the effect of these economic aspects in their tuition. Although these are not the only issues of concern in the current economy, these serious issues are affected by the deficit, surplus, and debt of the nation. According to experts, the taxpayers eventually will pay the costs of today’s deficit tomorrow. To finance last year’s trade gap, Americans had to borrow $503 billion in international markets. Foreigners will buy billions of dollars’ worth of United States corporate mortgages, and government bonds. They lend Americans the money needed to import more from the rest of the world (Ackerman, 2004). The additional expense is the burden of the American taxpayer. Meanwhile...
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...Fiscal Policy ECO/372 June 1, 2015 Alan Beideck Fiscal Policy The United States deficit, surplus, and debt influences the economy in a number of ways, and it creates an impact on taxpayers, social security and Medicare users, unemployed workers, and students. These issues also affect the countries financial reputation, exports, imports and the Gross Domestic Product (GDP). The U.S. economy is experiencing a budget deficit and outstanding debt, and the outlook is not good for taxpayers. If these two items do not get under control, future generations will be left to pick up the pieces and will have to try to find a way to maintain and control the budget. Taxpayers Taxpayers are the people that pay and contribute to state revenue. Government deficits affect taxpayers by increasing taxes and interest. "Inflation also affects the deficits by affecting the size of social security payments, federal pension payments, and interest on the federal debt. The deficit and surplus are sensitive to the business cycle" (Deficits, Surpluses, And Debt, 2015). "If the government use surplus it would "give tax cuts to taxpayers, increase income transfers, pay down national debt and spend it on goods and services" (Deficits, Surpluses, And Debt, 2015). Future Social Security and Medicare users The Social Security program began in 1935 and benefits have always been paid on time, even with modified laws over the years. Benefits are expected to continue to be paid on time through...
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...Title of Paper Your Name Course/Number Date Instructor Name (Doctoral students must include the following on the title page instead: title, author’s name, and institution name) Title of Paper The U.S Economic forecast is very helpful because it helps to provide the world’s leading organizations with knowledge it needs. The source is useful because there is information that is provided from businesses all over the world as far as economics and corporate leadership. Also the the website provides critical information and challenges that the world faces including annual reports, value creation, high performing organizations and human capital. The source gives helpful updates with stock prices rather they have increased or decreased. There is research incorporated with insights captured through extensive work and feedback which is also shown in order for the businesses to make the right decisions. This week was a bit confusing to me trying to figure the difference between the Keynesian and classical economics but, I have come to a conclusion that some believe paying with taxes is the better way to go. Others say it's best to adjust government spending levels but, taxes and government spending are both Keynesian fiscal policy tools to manage the economy and if it’s done in the right way, both can have the same results in the end. In addition, they accomplish those results in different ways. So Keynesian is the man behind aggregate demand and aggregate...
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...Fiscal Policy Paper ECO/372 Principles of Macroeconomics The American tax paper relief of 2012, (ATRA), which was enacted on January 2, 2013 permanently extended the 2001 and 2003 federal income tax cuts for 98 percent of tax payers. The tax relief act reflects the approach sunporch that balances responsible reductions in government spending with new revenues and increased progressivity of the tax code. But the new law extended the expansions of several tax credits enacted in the American recovery and reinvestment act of 2009 (the recovery act) that have provided economic opportunities through tax relief and college expense assistance to 25 million low-and middle-income students and working families each year. Together with the additional Medicare and investment income taxes for high-income tax papers in the affordable care act (ACA), ATRA has made the federal taxes system more progressive. Government spending first reached $1.5 trillion in the mid 1980’s, and then breached $2 trillion in the recession year of 1991. In the 1990” s spending increases starts to level off, reaching $3 trillion in 1999. But in the 2000” s with the dot-com crash and the response to 9/11 government spending began to accelerate, reaching $4 million in 2004 and $5 trillion in 2008. Then came the crash of 2008 and government spending exploded years of modest in nominal dollars, spending is expected to resume regular increases by the late 2010’s. Income taxes must be filed by all businesses and...
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...Fiscal Policy Paper The United States Financial Reputation on an International Level: If the United States surplus low and debt high will have an impact on obtaining resources to invest in production. Most of the product the United States get is from other countries and will not change the employment rate that much. The United States can get more assets by exporting fewer goods than we import. By not trading goods as much as exporting the foreign investment becomes deficit. If the exports are greater than what is imported to the United States is out of balance with trade surplus. (About.com, 2013) A Domestic Automotive manufacturing (exporter): When the United States is deficit in surplus and debt the foreign exchange rate is affected. The value of money in the United States will decrease in value if future predictions with debt are bad. As a result, automotive manufacturers will not have decline in sales which causes trade to be low and unemployment. If the United States can’t sell their goods to other countries it will cause a surplus and debt of domestic goods. (About.com, 2013) An Italian Clothing Company (importer): The Decrease in trade will happen when the United States has an excess of the Italian clothing they do not have a demand for the products. The United States will export the overload of clothes to other countries before the United States is affected. When debt is high and the United States needs more clothing will sell assets at a lower price...
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...The Business Environment s BUS100 Abstract This paper covers varies aspects of business and the effect it has on our economy. Inside I will cover the role of business in the economy and I will also educate you on some of the differences and similarities of a for-profit and a non-profit organization. I will also cover the impact of our current fiscal and monetary policies on our economy. The final part of the paper will give you an idea of how I would expose a product to global markets and the impact of social responsibility on a stakeholder group. The Business Environment Introduction In today’s business environment a new era has dawned upon us. A business can be open almost anywhere as long as it follow the rules and regulation. A business environment depends upon the enterprise operating within the framework of the competitive market economy. Therefore globalization and society as a whole has presented opportunities that has arisen in recent years to change the business environment. There was a time when we iron our own cloths, now there are drycleaners on every corner, advertising for our business. People are eating out at fast food restaurants instead of cooking at home. These complex structures are known as a business. These small functioning businesses play a vital role in our economy...
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...profit. This paper will discuss the role business and the different affects business has on society today. The roles of for-profit and nonprofit organizations will be compared and contrasted. This paper examines the impact of the current fiscal and monetary policies on the economy. A selected product or service will have a strategy for accessing global markets outlined. In the world of business, there are certain constants that exist throughout. One the most important factors being the overall environment itself. The term Business Environment is pretty self-explanatory, and means exactly what it sounds like. The Business Environment is simply a set of different conditions and variable that dictates the nature of the current business environment. The role of business becomes an important factor in determining the flow of this current environment. Business, whether it is large or small scale, is the heartbeat of any economy. Companies that primarily focus on profit margins and financial rewards differ from those that business models consist of mission statements usually geared toward promoting the “greater good”. For-profit and non-profit organizations both play vitals roles in the fluency of the economy’s welfare overall. Behind every economy lies a set of governing rules that work as guidelines to that economy. The United States has its own set of policies that do just that. Currently, there have been some shifts in some of the country’s monetary and fiscal policies that have...
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...2012 ABSTRACT This paper is going to describe the business environment in the world today explaining the role of business in the economy, for-profit and non-profit organizations, fiscal and monetary policies, accessing the global market, and social responsibility to a stakeholder group. Although there are many different types of businesses in the world today, they all hold the same functions in the economy; to use the factors or production in the best possible way to reach a certain market supplying goods and services to an economy in search of profit. I used the Business 100 book along with credited sources to get information for this paper. My methods for finding information came from chapters one through four in the Business 100 book and searching key words on the internet. I concluded that the role of business in the economy is very important to how an economy progresses or declines. Business does this by operating by fiscal and monetary policy in the country and accessing global markets in search of new outlets worldwide all while pleasing the stakeholders in every category. Inside every economy there are factors that participate in how that economy succeeds or fails. Business is one factor that plays a major role in any economy. Without business there essentially is no economy. Whether it is for profit or non-profit, business can contribute to an economy’s development with the factors of production, adapting to fiscal and monetary policy, accessing global markets...
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...European Fiscal Policy: Coordination of fiscal policy in Eurozone Wibowo Suhaidi (1235036) Tilburg University Course: Financial Economics Professor: S.C.W. Eijffinger October 2011 ABSTRACT The Stability and Growth pack has been discussed extensively in determining whether it is sufficient to undermine fiscal policy coordination in the Eurozone. Even before the recent sovereign debt crisis hitting the Eurozone the SGP has been in much of critics and the current situation calls for deeper analysis on the SGP and whether more coordinated fiscal policy in Eurozone is necessary in strengthening fiscal policy framework. This paper analyzes the implementation of fiscal policy in Eurozone with the SGP as the guideline and found out that despite effectively maintain the budgetary balances of Eurozone countries, the SGP failed to deliver overall fiscal stability. Therefore, a more coordinated form of fiscal policy is required in order to achieve the goal of fiscal stability in Eurozone. 1 I. Introduction The formation of European Monetary Union and the adoption of Euro as the single currency have the consequence that member countries are losing their monetary policy independence at the national scope. Therefore, one possible solution is to use fiscal policy in order to mitigate the asymmetric shocks, as fiscal policy is still on the hand of the national government of each member countries. However, from the Monetary Union point of view it is not desirable to...
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...are known potential shocks in the coming months – the risk is rising of a dangerous economic slide. The Brookings Institution-Financial Times Tracking Indices for the Global Economic Recovery shows a steep drop in 2012 so far, leading professor Eswar Prasad of Brookings to describe the global economy as “on the ropes”. In the International Monetary Fund’s twice-yearly World Economic Outlook, published this week, Olivier Blanchard, the fund’s chief economist, said the world economy was hamstrung by uncertainty, which was pre- venting companies from investing and households from spending. “Worries about the ability of European policymakers to control the euro crisis and worries about the failure to date of US policymakers to agree on a fiscal plan surely play an important role, but one that is hard to nail down,” he said. The renewed concern about the health of the global economy marks a depressing return to fear after an initially strong global recovery. World output jumped 5.1 per cent in...
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...In this paper I will discuss the role of business in the economy compare and contrast the roles of for-profit and nonprofit organizations discuss the impact of current fiscal and monetary policy and show an organization that I am familiar and outline a strategy for accessing global markets. The role of business in the economy is business is the economy. If there is no business then there would be no economy at all. The economy of the country depends on employment provided by big and small businesses that produce the goods and provide the services that we rely on in our daily lives. Businesses pay taxes to the government and allow the government to function on the tax collected from them. The government shows the economy to be shrinking includes the privation of government business enterprise. (Study mode) For-profit and nonprofit organizations play an important role in the economy. For-profit organization produces goods and services and provides employment with the primary goal of generating financial gain. Kelly McGowan (2012) Whereas nonprofit organizations are not businesses of financial goal they employ people, take in revenue and provide good and services with fundamental goal of serving humanitarian needs. Kelly McGowan (2012) The impact of current fiscal and monetary policy on the economy is. Monetary policy is Federal Reserve decisions that shape the economy by influencing interest rates and the supply of money. Kelly McGowan (2012) Whereas fiscal policy refers...
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...| The Business Environment | BUS100 | Professor Mancini | | | Robert Negron 6/21/2013 Describe the role of business in the economy. Compare and contrast the roles of for-profit and nonprofit organizations in the economy. Discuss the impact of current fiscal and monetary policy on the economy. Select a product or service with which you are familiar and outline a strategy for accessing global markets. Select an organization with which you are familiar and discuss the impact of that organization’s level of social responsibility on a stakeholder group of your choice. | What is the role of business in the economy? Some might say that business breathes life giving air into the lungs of the economy. Business is an organization involved in the trade of goods, services, or both to consumers. Businesses play a huge role in every section of an economy, such as; manufacturing, healthcare, retail and service are examples of what involves businesses. Businesses also create jobs, and use local resources. In turn consumers that are employed by businesses make money in turn spending that money back into the economy creating continues cycle of business. The roles of for-profit and non-profit play a critical role in the economy and are very similar but have one obvious difference. A non-profit organization simply is a business-like establishment; their end result does not include profit where as a for-profit organization’s goal is profit. For-profits also differ from non-profit...
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