Essay on Best and Worst of Spending

2133 Words Jul 1st, 2012 9 Pages
CRAM Exclusive
Essay Sample
The Best and Worst of Spending Barbara Cook-Snider ECO203: Principles of Macroeconomics Instructor: Marlo Chavarria February 20, 2012 The Best and Worst of Spending I am writing a paper in response to my class, Principles of Macroeconomics, in which we are to speak about the government deficit and what our thoughts are based on research. It’s easy to speak of what and why our deficit is so high, but there are many different opinions of how to fix it. Maybe there

middle of document…

That is not, of course, "Plan A." Everyone would have been much happier if the economy had continued to expand, which would have made stimulative deficit spending unnecessary. We also would have liked it better if monetary policy (lower interest rates) could have reversed the economy's slide, but rates are already as low as they can go. The last resort was to try to expand the economy directly, which is what the stimulus package from this past Spring was all about.
The increase in the deficit in the face of the weakening economy is, in fact, one of the reasons that focusing on the "cash-flow deficit" can be so misleading. It is one thing to say that we are running a deficit of, say, 12% of national income during boom times, but it is quite another to say we are running a deficit of that magnitude during a recession. During a recession, we should expect that the deficit will be temporarily high, for two reasons:
First, when the economy is weak, we collect fewer tax dollars (because so many people have lost their jobs or have seen their incomes fall), and we also have to spend more money on benefits to prevent people from suffering catastrophic and irreversible harm as they try to find new jobs.

The Best and Worst of Spending
Second, the deficit is also higher during a downturn than it would normally be because of the government's attempts to stimulate the economy.
CRAM Exclusive

Related Documents

  • Best and Worst Characteristics of My Teachers Essay

    harder to learn for the students, like me, who were not auditory learners. There are many positive characteristics that I will model when I begin teaching. There are also many that I will avoid as an educator. I will begin with the five best characteristics that I will model in the classroom. First off, I believe that every educator should demonstrate a positive, professional attitude. It is very important that teachers demonstrate a positive attitude because they serve as a major role

    Words: 1075 - Pages: 5
  • Health Care Spending Essay

    businesses, and public budgets” (para 2). Individuals need health care and if these expenditures are on the rise employers and insurance companies must come together to find strategies that will find a solution to this problem. Health Care Spending Spending health care cost is split between program administration, home health, nursing home care, dental, pharmaceutical drugs, and hospital care at the highest of 31% health

    Words: 1280 - Pages: 6
  • Components of Consumer spending Essay

    Another reason that DG spending (relative to GDP) does not seem to change is that there have been significant increases in the way that durable goods are manufactured. Advancements in technology and quality control procedures allow manufactures to produce higher quality goods with longer service lives, which consequently need less frequent replacement. Also global competition has forced American manufactures to produce higher quality goods at more competitive prices. Consumer spending on Non-Durable Goods

    Words: 1027 - Pages: 5
  • Braveheart: the Worst Film for Best Picture Essays

    Yet what astonishes is the long theatrical length of the scene here, with no change of location. The comedy lands so badly- not only because it is morally offensive, but also because the dramaturgy here is as creaky and antiquated as a Feydeau farce. On the basis of these two scenes it is possible to generalize about the editing: Gibson has a taste for long stretches of purely aestheticized schmaltz, with full-on mood lighting, constructed as manipulatively as possible, whether for a crude

    Words: 3891 - Pages: 16
  • Essay Healthcare Spending

    months of 2013 (Davidons, 2014). “The Affordable Care Act's mandate for Americans to have health coverage this year or pay a penalty will fuel further spending increases this year, says George Miller, a fellow at the Altarum Institute's Center for Sustainable Health Spending. The Centers for Medicare & Medicaid Services expects health spending to rise 6.1% this year, up from about 4% in 2013, as an estimated 11 million Americans gain health insurance” (Davidons, 2014). One of the Objectives of

    Words: 693 - Pages: 3
  • Parental Spending Essay

    but quickly adapted to the situation to save his dignity among his peers. Working with what you have, like Marco, is what all parents and children have to do. Some upper-class families restrict spending while others freely spend to support their children’s needs or wants. Fitting in, or using spending habits to cope with a difficult transition is a strategy that parent’s use to lessen the blow to the familial unit. Those that are less fortunate, purchase items that will provide the most social

    Words: 2078 - Pages: 9
  • The Worst Job Ever Essay

    I know is I am being forced to look for another job because I hear I am going to be laid off. I know I will be appreciated when I'm gone and there's no one to do there dirty work, and in all honesty I am kind of relieved because this has been the worst job

    Words: 686 - Pages: 3
  • Essay on Worst Nightmare

    fast as if I had just run a ten-mile relay. To this day I still have not figured out what my dream meant but I’m also scared to find out the meaning behind it. I have decided to leave it behind me but will always have it in the back of my mind as the worst

    Words: 735 - Pages: 3
  • Essay on Suicide: The Worst and Final Choice

    as the family. Some friends will review warning signs they missed, consider what they could have done for them, and possibly even blame themselves. If information was readily available then maybe some suicides could be noticed and intervened. The worst effect of a suicide is amongst other people who are contemplating suicide. The report of a suicide can push the contemplator to become the next suicide victim; this series of suicides ignited by a single case is called cluster suicides. As Laura Lynott

    Words: 832 - Pages: 4
  • Essay on A Best Friend Is Man’s Best Friend

    She would not stop jumping at me as she tried to lick my face. It’s like she thought I had left her for good. Man’s best friends are always there when you need them, they are faithful animals. Even though they do something bad and you get upset at them and start to yell, later on they’ll come back showing they want to apologize and that’s because dogs are naturally affectionate. Their instincts is to want to bond to someone. They are always at your side. They give you love, friendship, and their

    Words: 1573 - Pages: 7