Fiscal responsibility plays an important role in history and even today, and it affects many aspects on economy in many different ways. Fiscal policy is the use of how government’s revenues collection and expenditures influence the economy. The change of the government’s taxation and spending can influence aggregate demand and the level of economic activity. Why is fiscal policy important and worthy to discuss? Because it stimulates the economic growth in a period of a recession, it can keep inflation low, and it can stabilize economic growth, avoiding the boom or bust in an economic cycle. The current fiscal policy brings US competitiveness a great harm. Fiscal cliff is the combination of the increase in text levy and decrease in disbursement,
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Conservatives believe the government should tax less and spend less. They promote to cut taxes for people who contribute to charitable organizations, and to reduce government wastes to balance the budget. As the promoter of the fiscal conservatism, Ronald Reagan made some contributions based on his policy in order to reach an authentic healthy economy. He cut income taxes, deregulated the economy, and attempted to dispose in spending all to reduce the size of government. In the article Ronald Reagan: Conservative Statesman, Steven Hayward talks about Reagan’s explanation on his opinion that modern conservatism essentially became the authentic champion of the best of the liberal tradition: “The classic liberal used to be the man who believed the individual was, and should be forever, the master of his destiny. That is now the conservative position… The conservative now quotes Thomas Paine, a long-time refuge of the liberals: ‘Government is a necessary evil; let us have as little of it as possible.’” Reagan optimistically regarding Thomas Paine’s query. On the issue of the sequestration cuts to the defense budget, the article Strong Defense and Fiscal Responsibility: It’s Possible says the public may perceive the issue as an eliminating waste and inefficiency in the …show more content…
In modern industrial countries, many of them have problems on inflation, which is mainly caused by the increasing production costs and over-production, which had an enormous impact during the Great Depression. But liberals point to the experience in the Great Recession as evidence, they indicate that many central banks have made their economics into potential threats of hyperinflation because they listened to the conservatives to massive money supplies. The article Fiscal Contraction Is Shrinking US Economy “The economy most certainly would have grown at a faster rate were it not for the ongoing political brinksmanship over the debt ceiling and the risk of sharp fiscal contraction in the form of the pending automatic ‘sequestration’ budget cuts.” which implies that economic growth and job development would go slower under the political conflicts’ interference. The Author Adam Hersh also claims that two factors that can hold back US economy, one is “the substantial uncertainty over U.S. fiscal policy created by political brinkmanship over the debt ceiling and the risks of fiscal contractions that are undermining the nation’s economic recovery” and the second is “related to the failed hopes of other nations that bet on fiscal contraction policies hoping these austerity policies would somehow defy economic gravity and revitalize their economies”. As Adam analyzes, today’s threat of fiscal
Conservatives believe the government should tax less and spend less. They promote to cut taxes for people who contribute to charitable organizations, and to reduce government wastes to balance the budget. As the promoter of the fiscal conservatism, Ronald Reagan made some contributions based on his policy in order to reach an authentic healthy economy. He cut income taxes, deregulated the economy, and attempted to dispose in spending all to reduce the size of government. In the article Ronald Reagan: Conservative Statesman, Steven Hayward talks about Reagan’s explanation on his opinion that modern conservatism essentially became the authentic champion of the best of the liberal tradition: “The classic liberal used to be the man who believed the individual was, and should be forever, the master of his destiny. That is now the conservative position… The conservative now quotes Thomas Paine, a long-time refuge of the liberals: ‘Government is a necessary evil; let us have as little of it as possible.’” Reagan optimistically regarding Thomas Paine’s query. On the issue of the sequestration cuts to the defense budget, the article Strong Defense and Fiscal Responsibility: It’s Possible says the public may perceive the issue as an eliminating waste and inefficiency in the …show more content…
In modern industrial countries, many of them have problems on inflation, which is mainly caused by the increasing production costs and over-production, which had an enormous impact during the Great Depression. But liberals point to the experience in the Great Recession as evidence, they indicate that many central banks have made their economics into potential threats of hyperinflation because they listened to the conservatives to massive money supplies. The article Fiscal Contraction Is Shrinking US Economy “The economy most certainly would have grown at a faster rate were it not for the ongoing political brinksmanship over the debt ceiling and the risk of sharp fiscal contraction in the form of the pending automatic ‘sequestration’ budget cuts.” which implies that economic growth and job development would go slower under the political conflicts’ interference. The Author Adam Hersh also claims that two factors that can hold back US economy, one is “the substantial uncertainty over U.S. fiscal policy created by political brinkmanship over the debt ceiling and the risks of fiscal contractions that are undermining the nation’s economic recovery” and the second is “related to the failed hopes of other nations that bet on fiscal contraction policies hoping these austerity policies would somehow defy economic gravity and revitalize their economies”. As Adam analyzes, today’s threat of fiscal