The articles that I read talks about the budget, sequestration, budget cuts and how to make the economy flourish and how spending cuts could help the economy.
Federal spending is taking a toll on the constructive assets in the economy. The federal spending is at one-fifth of the GDP which is way too high. The deficits are driving up debt above three-fourths of the GDP. Over the past twenty years the federal government has used borrowing to finance the spending that has occurred. Due to being in a recession for the last four years the low tax revenues have lead the country to have consecutive trillion-dollar yearly deficits. The spending has and will remain above the historical average of 20.2%. This is then expected to have massive growth when we come to the end of the decade when programs such as Medicaide and health care subsidies with in the Affordable Care Act overpower the federal budget. …show more content…
The sequester is a set of automatic spending laws put into law by the budget control act. On March 1, 2013 a sequester of 2.5% was put into place. These spending reductions should be examples of how dysfunctional Washington is. Instead of them looking at the budget and identifying where the spending could be cut back or where it could be used more efficiently they put in these sequesters.
Some ways that the government can reduce the federal spending are
Empowering the state and local governments: The government should really only be focused on some of the main government duties. The government should allow the state and local governments be more involved with the people.consolidating programs: There are many duplicative programs on top of already existing programs. Having such programs increases administrative costs and by getting rid of them they could save tons of money.Lastly they could try and eliminate waste, fraud and
Federal spending is taking a toll on the constructive assets in the economy. The federal spending is at one-fifth of the GDP which is way too high. The deficits are driving up debt above three-fourths of the GDP. Over the past twenty years the federal government has used borrowing to finance the spending that has occurred. Due to being in a recession for the last four years the low tax revenues have lead the country to have consecutive trillion-dollar yearly deficits. The spending has and will remain above the historical average of 20.2%. This is then expected to have massive growth when we come to the end of the decade when programs such as Medicaide and health care subsidies with in the Affordable Care Act overpower the federal budget. …show more content…
The sequester is a set of automatic spending laws put into law by the budget control act. On March 1, 2013 a sequester of 2.5% was put into place. These spending reductions should be examples of how dysfunctional Washington is. Instead of them looking at the budget and identifying where the spending could be cut back or where it could be used more efficiently they put in these sequesters.
Some ways that the government can reduce the federal spending are
Empowering the state and local governments: The government should really only be focused on some of the main government duties. The government should allow the state and local governments be more involved with the people.consolidating programs: There are many duplicative programs on top of already existing programs. Having such programs increases administrative costs and by getting rid of them they could save tons of money.Lastly they could try and eliminate waste, fraud and