...‘Is there a democratic deficit at the heart of the EU?’ Plan: Intro: -What is a democratic deficit? The European Union (EU) is a unique economic and political union of 27 member states which are located primarily in Europe. The EU operates through a system of supranational independent institutions and intergovernmental negotiated decisions by the member states. Important institutions of the EU include the European Commission, the Council of the European Union, the European Council, the Court of Justice of the European Union, and the European Central Bank. The European Parliament is elected every five years by EU citizens. It is often implied that the EU has a withholds some elements of a democratic deficit. A democratic deficit can be described as when a democratic institution or organisation, is seen as not fulfilling its democratic foundations when the operations and practices of that organisation become potentially undemocratic. A good example of this in the UK would be the view that the House of Lords increases the UK Parliaments democratic deficit, as the peers that sit in the House of Lords are neither elected nor accountable. I shall depict in the following essay both the arguments that provide the basis for there being a democratic deficit within the EU, and those that suggest that the EU has become/is more democratic than made out to be. Main body: - Elite domination is often a widely discussed cause of the democratic deficit within the EU. Germany and France...
Words: 1353 - Pages: 6
...Is there a democratic deficit at the heart of the EU? Many Conservative and UKIP politicians as well as supporters of these two parties would argue there is a democratic deficit at the heart of the EU. One of the big arguments as to why the EU has a democratic deficit is that the EU is an elitist organisation. This argument claims that the EU is controlled by a small group with a lot of power. The elite can be separated into two distinct groups: the economic elite and political elite. The economic elite are defined as big businesses that want a big, single market of which to trade in of which the political elite push forward. The political elite constitute: heads of governments, foreign ministers, civil servants and the Commission who have come under a lot of scrutiny by euro-sceptics for being undemocratic. Elite domination can be evidenced by the Maastricht Treaty of 1992 and Denmark as a member state. The Maastricht Treaty was the most important treaty in terms of change of rules of the EU and Demark wanted to consult with its population before accepting the terms by holding a referendum. The first referendum led to a rejection by the Danish people however a second referendum was held on the issue in which the Danish population agreed to accept the treaty. This is a clear example of the EU not taking no for an answer and shows how the EU is led by an elite that will not take rejection from the population of an EU member-state. This can be evidenced further by idea of an EU...
Words: 1833 - Pages: 8
...A democratic deficit occurs when government doesn’t provide the values of democracy or when political representatives are shamed in the eyes of the public. In the UK there has been debate that Britain’s democracy is flawed. The voting system is unfair and recent expenses scandal exposed just how many politicians do not respect the position they are given. One of the main factors to argue there is a democratic deficit in the UK is the low levels of voter turnout and widespread discouragement with the FPTP system. In 2001 the UK received a general election turnout of 59.4%, the lowest since the start of universal suffrage in 1918. Low turnouts in elections will weaken the electoral mandate of the party and the legitimacy of the government, and if citizens are not participating in politics the decisions made by government are no longer in the interest of the whole nation. For instance the 2011 AV referendum got a turnout of just 42.2% so it would not accurate to base this result on a decision that will affect the whole country, when fewer than half of the population voted. Some suggest that the elections in the UK are not fair due to the “First Past the Post” voting system. The FPTP system favours two parties (the Labour and Conservative party) and this means that there is a reduced chance of smaller parties winning constituencies. In the 2010 general election the Labour party got 29% of the vote and gained 258 seats, whereas the Liberal Democrats won 23% of the votes but secured...
Words: 571 - Pages: 3
...Efforts to Reduce the Budget Deficit Melissa Hillard ECO203: Principles of Macroeconomics (BAJ1347A) Instructor: Kathryn Armstrong December 9, 2013 Efforts to Reduce the Budget Deficit Between the years of 1980 and 1993, budget deficits amounts increased and the national debt tripled. The public debt in this country has grown by more than $500 billion each year, in July 2012 nominal GDP was $15.8 billion. The ratio of debt reached a 10 year low in 1981 (32.8%) and went to 73% in 1993. By 2012 it was almost 100%. The actions taken by Congress since 1985 and the current debates between the Whitehouse and Congress, including what measures are necessary to address spending and revenue, will be reviewed. In 1981 President Reagan’s advisors proposed a 30% reduction in personal income taxes and an even bigger cut in corporate profit taxes. The actual result was a 25% cut in personal income taxes. At the time there was a conflict as to why the taxes were cut. There were several groups that had different opinions as to why President Reagan cut the taxes and what his expected results were. “Some supply-side economists argued that the increased incentives to work, save, and invest would actually result in increased tax revenues” (Amacher & Pate, 2012). Though there were some effects on tax revenue, there were not enough to offset the original tax cut. A second group believed that the purpose of the tax cut was to limit the revenue source that the government was...
Words: 1033 - Pages: 5
...law 10. opinion polls 11. incremental reform 12. color-coded warnings 13. severe ataxia 14. a walk-in clinic 15. to endorse a referendum 16. phased disengagement 17. to criminalize adultery 18. self-sustaining force 19. coverage limitations 20. a crowd of civilians 21. legislative elections 22. sanitation services 23. considerable controversy 24. adolescent death 25. the ladder of success 26. to suffer from hypertension 27. federal poverty line 28. adverse health outcome 29. incremental reform 30. minor expansion 31. thirsty cities 32. depleted aquifers 33. to profile projects 34. fatal heart attacks 35. yawning gaps 36. to run deficits 37. bipartisan support 38. to induce government 39. to maintain taxes 40. unmediated markets 41. to foster opportunity 42. to afford health insurance 43. pooling resources 44. to applaud initiatives 45. a legitimate social issue 46. veiled criticism 47. access to social insurance 48. to spark dramatic tax cuts 49. to cast off political torpor 50. to galvanize populist politics 51. to widen medical coverage 52. amendments to bipartisan legislation 53. to buffer citizens against crisis 54. dead tie 55. unorthodox approaches 56. bloody culmination 57. impending surgery 58. sensitive...
Words: 979 - Pages: 4
...A COMPARATIVE ANALYSIS OF THE NIGERIAN BUDGET FROM 1999 – 2013 ONOWA SIMON +2348064034407 Simoncy2k@gmail.com ABSTRACT This study examines the Federal Government budget in Nigeria between 1999 and 2013. The analysis of this study showed that for more than a decade of democratic dispensation in Nigeria, there has been a consistent increase in the total recurrent expenditure of the Federal Government. This has led to budget deficits. Thus a key macroeconomic issue addressed in this study is the rationale underlying government fiscal deficit, the significance of the rational expectation hypothesis in Nigerian economy and the consequences and impact of this action on the economy. Data for this study were collected from CBN statistical bulletin and gazette of the Federal Ministry of Finance. The study employed a descriptive analysis. Government has been allocation more fund to recurrent expenditure over the period under study. Using key fiscal indicators the study recommended that for overall sustained economic growth and development; federal government should increase substantially allocation to capital projects in rural Nigeria to trigger economic growth and development. Introduction A Budget is focused on the Government’s drive to achieve its developmental goals as entrenched in its Vision. It is also anchored on the commitment of the Government to improve the socio-economic status its people by strategically implementing plans and programmes to boost economic activity...
Words: 2515 - Pages: 11
...are not necessarily shared by any of the institutions with which they are affiliated. We thank Al Davis, Peter Diamond, Edward Gramlich, Peter Orszag, Gene Sperling, and Lawrence Summers for comments on an earlier draft. Elmendorf was formerly Deputy Assistant Secretary of the Treasury in the Office of Economic Policy, and prior to that Senior Economist at the Council of Economic Advisers; Liebman was formerly Special Assistant to the President for Economic Policy at the National Economic Council; and Wilcox was formerly Assistant Secretary of the Treasury for Economic Policy. Table of Contents Page 1. Introduction 2. Budget Outcomes and Projections Improved Budget Picture Sources of Improvement 3. Budget Deficit Reduction: 1990 through 1997 OBRA90 OBRA93 What Did Deficit Reduction Ultimately Accomplish? The Republican-Controlled Congress BBA97 4. Entitlement Reform and Saving Social Security First Entitlement Commissions Social Security Saving Social Security First 5. Social Security Reform Options Using Projected Budget Surpluses as Part of Social Security Reform Investments in Private Financial Assets Potential Compromise Reform Proposals The 1999 State of the Union Social Security Proposal 6. Budget Surpluses: 1998 through 2000 The 1999 State of the Union Budget Framework Balancing the Budget Excluding Social Security Fiscal Policy in 2000 A National Asset 7. Conclusion References Tables Figures 1 3 9 24 40 63 78 80 84...
Words: 25267 - Pages: 102
...taxes (taxes minus transfers) has an expansionary (contractionary) effect. 4. What is the balanced budget multiplier? 5. Explain why discretionary fiscal policy has not been very effective in reducing recessions in the United States. 6. What are the “time lags”? 7. What is meant by "automatic stabilization"? What are the main automatic stabilizers? 8. What is meant by "official budget deficit"? by "structural deficit"? Why is the structural budget deficit a better measure of the intent of fiscal policy? 9. What does it mean that "fiscal policy is expansionary (or contractionary)"? How does one determine whether fiscal policy is expansionary or contractionary? 10. In what ways might budget deficits be bad for an economy? In what ways might they be good for an economy? 11. What is meant by “crowding-out”? 12. Explain the relation between the budget deficits and the trade deficits. 13. What is meant by the "national debt"? What is the difference between "budget deficit" and "national debt"? What is the difference between "gross national debt" and "net national debt"? 14. What is the difference between a Treasury bill, a Treasury note, and a...
Words: 9913 - Pages: 40
...Week five Fiscal Policy Paper * Depending on the time, the economy can have many financial stages. There are times when the economy is facing a budget deficit, which means the tax revenues in the government are lower than the government expenditures. The economy can also experience a surplus and high debt, which can also drain an economy. The state of our government can affect people from taxpayers, to the elderly who are collecting social security, to children needing medical and governmental benefits for their well-being. The government debt situation can be either an advantage to the population by lowering taxes, or a disadvantage by making taxes higher. * To know how taxpayers, future Social Security and Medicare users, and unemployed individuals are affected by the U S.’s deficit, surplus, and debt. It is important to understand the definitions of deficit, surplus and debt. Surplus occurs when there is more supply than demand, as in extra resources. Deficits occur when a government's expenditures exceed the revenue that it generates. Debt is an amount owed to another person or government in economics. * Taxpayers can benefit from a budget surplus. A surplus can create a reduction in the tax rate which leads to a higher consumer’s savings rate. The less taxes that consumers have to pay allows spending or savings in other areas. An increase in national savings (reduction in tax rate) also creates additional money that can be available for banks to...
Words: 1805 - Pages: 8
...nondefense spending, increased defense spending and balanced budget. His policies brought success in stimulating the economy. He was able to improve the lives of the people and certain concerns during those times such as recession, unemployment and inflation. In 1985, while efforts have been made by President Reagan to uplift the economy, the US government was still beset by unbalanced budget due to deficits. Thus in his second term, he focused more in addressing this problem. However, the economic policies he implemented appeared to have created a setback in the country’s budget. In addition to the existing deficits prior to his term, deficits continued to increase. Objectives This paper aims to give an analysis on the cause and effect of the deficit problem Reagan faced in his second term and an analysis of the strategies he implemented in solving it. This paper also offers alternative strategies that would allow Reagan to reduce the deficits and balanced the budget. Analysis The Causes of the Budget Deficits This paper discusses three major cause of the budget deficit during Reagan’s term – tax cut, military spending and recession. The administration’s policy for tax cut was implemented to break the postwar trends to help the people and make an economic turnaround. Tax is the major source of...
Words: 2102 - Pages: 9
... Jingze Yuan The government budget deficit is the difference between government revenue (mostly taxes) and government spending; the current account deficit is the difference between exports and imports (there are some adjustments for items such as funds sent abroad). Both deficits occur when someone is spending more than they earn; during the last 25 years the US government has tended to spend more than it collects in taxes and US residents have tended to spend more on imports than they export. A nation’s current account deficit reflects excess domestic spending. Equivalently, a current account deficit equals the excess of domestic investment over domestic savings. Regarding the Twin Deficit approach, Bernheim argues that if world capital markets are integrated and Ricardian equivalence does not hold, an increase in the budget deficit will almost certainly contribute to the current account deficit. A regression of the current account on the budget deficit (both scaled with GDP), while controlling for business cycle effects using growth and lagged growth gives a coefficient of 0.3 on the budget deficit in the case of the U.S. and similar figures for Canada, U.K. and Germany. Furthermore, tax smoothing implies a one-to-one relationship between the current account and the fiscal deficit. The underlying mechanism is that a constant tax rate induces the budget deficit to move one-to-one with public spending and therefore with the current account...
Words: 478 - Pages: 2
...spends 40% more than the revenue it collects per year. This continues to be a highly debated topic within our legislative and executive branches of government. One reason the Federal Government’s major entitlement programs are difficult to control is the way they are designed. A second is that current budgeting process ignores long-term impacts of short-term expansions. A third is that these programs are not subject to regular review, like the other annual discretionary programs are. The means that Congress rarely evaluates the costs and effectiveness of entitlements except when it is proposing to expand them. Costs of healthcare continuing to rise, funding numerous war campaigns, and a broken tax system are all contributing to the widening deficit in the budget. It is quite clear that sacrifices must be made. The question remains: where do we begin? Background: Alexander Hamilton, the first Treasury Secretary, set up federal debt to pay off debt incurred by the Revolutionary War. Until the Great Depression in 1933, federal debt was used only to fund wars. In 1933, President Roosevelt began spending and raised the federal debt to around 40% of the GDP. From that point on, the federal debt has ranged from 122% of the GPD following WWII, to 50% of the GDP during the Cold War to the current value of 99.4% as presidential policies and goals changed (see Figure 1). During the end of the Clinton administration and through parts of the Bush administration the United States retained a...
Words: 1668 - Pages: 7
...“America is on a dangerous budget path. Current spending and debt are dangerously high, and future spending and debt are on track to rise even higher in large part due to the increasing entitlement spending” (Boccia, 2013). As recent as February of 2014, congress has decided to yet again raise the debt ceiling for America, this time capping the limit at $17.2 trillion dollars. This marks the fifth effective increase in the debt ceiling since August 1, 2011, when it was $14.3 trillion (Sahadi, 2014). If America continues to raise this limit, how is the debt crisis that our nation is currently experiencing going to affect our businesses; and more importantly, us as individuals in future years? The issues that need to be addressed to see where the root of this problem starts, and where the solution can be found starts with looking at the events other countries have or are currently facing, and how they have come up with strategies to solve their debt crisis. From there we need to focus on the economic trends that we are currently in, and the negative and positive effects that they are having. The effects that will be discussed are how creditors view America, how it affects businesses through prolonged drag and economic growth, and how it will affect the individual with inflation and increase in taxes. As this paper addresses these issues, it will reveal the scary truth of the tolls that will be put on America if they continue with their dangerous budget path. “The warning bells...
Words: 1910 - Pages: 8
...cooperative, wants to participate in decisions that involves them and their family, they want to be heard not said. People became more educated about their rights as citizens and how to put it in use. New Public Management (NPM)is an approach being glorified by government officials of Germany, it is tested and used in most countries, and it results to success and positive feedback's. NPM is said to be a respective government need. If it is implemented properly, it can be an effective approach to reform public sector. The only main concern is that, “Is Philippines ready? Do Philippines have the ability to embrace it?“ Since Philippines is one of the most corrupt countries with problematic election, bloated bureaucracy, fiscal deficit, budget deficit, deterioration investment climate and economic stagnation. All of this causes Filipino citizens to doubt. NPM central feature according to Moore is the attempt to introduce or simulate, within sections of the public service that are not privatized, the performance incentives and the discipline that exist in a market environment. NMP Principle are: • An emphasis on...
Words: 478 - Pages: 2
...Reduction of Federal Budget Deficit Author Institution United States federal government has run deficit budgets in 36 out of the last 40 years. A deficit budget occurs when government spending exceeds the total taxes collected. The government of the day has to borrow either internally or externally to fund the debt. Budget deficits are not necessarily bad because they accelerate economic growth (Alesina & Ardagna, 2010). However, debt increases beyond certain levels impact the economy negatively. For instance, high government debt implies that the savings generated in the economy will be used to repay the debt instead of being invested in development activities. High interest costs created by huge debts discourage work and savings are reduced. US annual debt currently stands at 7 percent of gross domestic product compared to the general average of 3 percent of GDP. This paper suggests different policy options that should be undertaken to reduce the budget deficit by 2.5 trillion US dollars over the next 10 years. Some of the policies relate to reduce spending while others relate to increase taxes. By applying the following measures, the federal government will be able to reduce spending by 940 billion dollars, increase revenue by 1561 billion dollars and eliminate 2.501 trillion dollars from the federal budget deficit. By increasing taxes on alcoholic beverages by 40, cents on a fifth of liquor and 50 cents on a six-pack of beer or a bottle of wine, the federal government...
Words: 876 - Pages: 4
