Tax payers
The learning team members had a discussion on The United States deficit surplus and debt. The Government is known to takes in revenue through taxes. The government runs on a budget deficit yearly and surplus has to do in part with how the government policymakers use the funds (Cashell, & Library of Congress 2004). The better option known in tax reduction is surplus tax to be returned to taxpayers.
Future Social Security and Medical Users
There has been an increase in medical spending while health care has maintained its cost in same class. Social Security has role of running a surplus of millions of dollars to date. The social security spends what it receives from tax revenues. If the law is changed by the Congress to turn to general revenues which will pay promised benefits then, the budget deficit would increase. Effects on unemployed individual are brought by large debt and deficits which causes uncertainty in the markets. This, therefore, lead to lay-offs which result to unemployment. Effect on university of phoenix students may be due to increase of government deficit which results in high interest rates (Monga, Monga, & World Bank. 2010). Many students prefer private loans since they have low interest rates.
The U. S financial reputation
The United States has faced several terrorist attacks that result to international financial crisis. One major problem is the fiscal and trade deficits. In the year2010, $1.3 trillion was the fiscal deficit in the United States or approximately 9 percent of U.S. GDP. The budget deficit causes limitation of resources to spend on investment and production.
A domestic automotive manufacturing (exporter)
The U.S. present account goods and services trade deficit which is balanced by our foreign investment surplus. Trade deficit can cause our foreign investment surplus and therefore resulting from the foreign investment surplus. The trade investment and deficit surplus are determine differs depending on export, import and invest. For the nation to balance trade surplus exports should be greater than imports. The Interest rate is what determines the exchange rate.
An Italian clothing company (importer)
When a company operates in debt it causes budget deficits, while low debt ratio which is company’s total debt compared to its total assets maximizes the profit hence increase in budget surplus. Impact on imports to the budget either deficit or surplus is minimal since the impacts of imported products on employment in United States are not great this is because most of imported products are not produced by the United States (Cashell, & Library of Congress 2004).
GDP
When the government operates on deficits and paying interest on debts, it makes it difficult for the capital markers to operate freely (Monga, Monga, & World Bank. 2010). These, therefore, attract the capital necessary to help recovery, create employments and grow the GDP.
References
Cashell, B., & Library of Congress. (2004). The federal government debt: Its size and economic significance. Washington, D.C.: Congressional Research Service, Library of Congress.
Monga, C., Monga, C., & World Bank. (2010). Hegelian Macroeconomics: The Dialectics of Global Imbalances. Washington, D.C: The World Bank.
