• Discretionary vs. Nondiscretionary Fiscal Policy 685
A discretionary is the changes made by the government. It could be taxes or spending. Changes can be made every year by the president or congress. When changes are made, it’s done to expand the economy. A nondiscretionary change is when it occurs without the congressional action, so it happens automatically. Within this policy the laws can make the economy slow down or fasten up without making a new law. When it slows down, the government spends more. An example, people are doing well in the tax system, it will increase peoples taxes.
• Expansionary vs. Contractionary Fiscal Policy 685 686
When there is an economic decline, that’s when an expansionary fiscal policy steps in. Within this …show more content…
The government taxes revenues changes so that the economy can be stabilized. When the GDP starts to decline, it will produce a budget amount. So depending on the amount, the built-in stability changes the GDP. The decline has made a positive effect because it made it not fall even more. The built-in stabilizers can only be intense and does not go against in the GDP. An example would be congress deciding on the spending level and also establishing tax …show more content…
So basically people who retired get benefits from incomes. The fund was called the Social Security Funds. Around 2009, revenues overreached the social security large payment. With the excess amount of money, that’s when the fund starts. The fund will have money left until it reaches to 2033. The reason behind this is the revenues drop lower than the retirement payouts. So the system started to change the money from the fund to make up the difference.
In my opinion, I believe that our generation should start saving up because there could be a chance where we won’t be able to receive benefits. The key long run problem between social security and Medicare is it will soon be depleted. Less people will receive benefits and will decline from 97 percent in 2025 and slowly decrease. I would favor in increasing taxes. If they started producing benefits then more people would likely be in several needs of help. They won’t be able to receive Medicare benefits, money, and etc. Increasing taxes will benefit us when we
A discretionary is the changes made by the government. It could be taxes or spending. Changes can be made every year by the president or congress. When changes are made, it’s done to expand the economy. A nondiscretionary change is when it occurs without the congressional action, so it happens automatically. Within this policy the laws can make the economy slow down or fasten up without making a new law. When it slows down, the government spends more. An example, people are doing well in the tax system, it will increase peoples taxes.
• Expansionary vs. Contractionary Fiscal Policy 685 686
When there is an economic decline, that’s when an expansionary fiscal policy steps in. Within this …show more content…
The government taxes revenues changes so that the economy can be stabilized. When the GDP starts to decline, it will produce a budget amount. So depending on the amount, the built-in stability changes the GDP. The decline has made a positive effect because it made it not fall even more. The built-in stabilizers can only be intense and does not go against in the GDP. An example would be congress deciding on the spending level and also establishing tax …show more content…
So basically people who retired get benefits from incomes. The fund was called the Social Security Funds. Around 2009, revenues overreached the social security large payment. With the excess amount of money, that’s when the fund starts. The fund will have money left until it reaches to 2033. The reason behind this is the revenues drop lower than the retirement payouts. So the system started to change the money from the fund to make up the difference.
In my opinion, I believe that our generation should start saving up because there could be a chance where we won’t be able to receive benefits. The key long run problem between social security and Medicare is it will soon be depleted. Less people will receive benefits and will decline from 97 percent in 2025 and slowly decrease. I would favor in increasing taxes. If they started producing benefits then more people would likely be in several needs of help. They won’t be able to receive Medicare benefits, money, and etc. Increasing taxes will benefit us when we