Question

Go to the internet and find a news article published within the last three months that discusses balancing the federal budget of the U.S. and fiscal policy, summarize key points and post in the Discussions area. Discuss the current level of the Federal budget deficit and the implications of the deficit. Support a proposal for addressing these concerns.

Answer 1

• US fiscal deficit is rising even since economic recession that hit US economy in 2007-2008. It is projected that soon US fiscal deficit would cross $ 1 trillion mark and US debt has topped the $ 20 trillion.
• Recently, President Trump has introduced big tax overhaul benefitting business class immensely. Further, Trump is pushing for big rise in defense expenditure. Further, expenditure on entitlement program also poised to rise in near future.
• US employment rate is near the natural rate of unemployment and growth rate is also above the 2 %. Hence, it can be deduced that government no longer need to keep on spending on economic activities.
• Here, government needs to rein in the cost of various entitlement program. Further, government must keep tab on swelling defense budget.