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Fiscal Policy Paper

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Toyia Spencer
    ECO/372
            June 2, 2014
            John Waltbillig

If the country is running a deficit it means that the supply of money is low and it affects the taxpayers. When the taxpayers are called to alleviate the low supply of money causes the government uses to run. Taxpayers are affected by the surplus by having citizens required to pay taxes if there is a surplus. The taxpayers’ debt is affected because it is the tax revenue that is used to pay off the debt that country has gotten.  
The future social security and medicare users is affected by the deficit spending greater than revenue received for that year. Social security only spend what it receives in tax revenues and has it surpluses and interest earnings. The debt is reported on the nation’s balance sheet that understates of its existing commitments for items. There was danger of increasing the deficit and debt by using federal government spending to end by being present high level of unemployment. If the depression is allowed to continue at a high level of unemployment it will cause an automatic increase of hundreds of billions in the debt.
The federal budget deficit for university of phoenix is expected to get higher this year. The big lenders in the U. S. government have been the countries with continuing trade surpluses. Some nations park trade surpluses in the U.S. dollars and buy government debt.   The national debt has an effect on the University of Phoenix.   According to Boyes and Melvin (2012), “fiscal policy around the world involved governments increasing spending dramatically so the budget deficits increased substantially.”
The deficit and debt budget limit resources to spend on investment and production. "In 2010, the fiscal deficit in the United States was $1.3 trillion or approximately 9 percent of U.S. GDP" (The Brookings Institution.)   The deficit and investment surplus could result from the foreign investment surplus. The current account goods and services...

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