...The Governments Fiscal Policy and Healthcare Proposals Trisha Elledge Colorado Christian University Abstract Bernie Sanders is looking to convert our country to a universal single-payer healthcare system. The following paper will break apart the article written by Avik Roy for Forbes titled Bernie Sanders’ Single-Payer Health Care Plan Would increase Federal Spending By At Least $28 Trillion. By converting to a single-payer healthcare system households would suffer more than they would thrive. Increased taxes, less government revenue and a higher unemployment rate can all come from implementing Berniecare into our country. Although Bernie Sanders is claiming to give “free” healthcare to all, I will point out why it is not free at all and why we should give the control of our healthcare back in to the hands of the people and out of the control of the government. The Governments Fiscal Policy and Healthcare Proposals According to Reem Heakal with Investopedia, “Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy.” This can include the changing of tax rates nationally or adding a new local tax, adjusting where money is spent and allocated or changing where our government dollars and tax dollars will be used. Each year the government decides where our money will be divided out by agreeing on the upcoming year’s budget, however; as the year goes on money is overspent or gets cut and has...
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...drive up the standard of living and overall quality of life for humans. These businesses produce the products we enjoy and in turn create jobs people need. The major difference between profit and nonprofit businesses is the main goal of profit organizations is to generate a profit for the owners and nonprofit is to use their surplus of funds to advance the goals of the organization. Fiscal policy and monetary policy refer to the efforts to shape the health of the economy. Direct investment and foreign outsourcing are the two key components in deciding which direction to expand a business global. U.S. based company Apple boosts huge profits, but has lost touch with the social obligation it has to Americans by sending all jobs overseas. Businesses are the main provider of jobs in a capitalist economy and the primary reason for economic growth. The definition of business is “any activity that provides good and services in an effort to earn a profit” (Kelly 2012). Most everything in the world related to economy is business. Agriculture, manufacturing, retail, health care, and even our government is business related. Let’s look at business on a small scale. In an agricultural society based just on farming, each farmer would specialize in one product otherwise everyone would have to grow their own food, manufacture their own clothing, and raise their own livestock. Being specialized in one area would create the need for bartering. Each farmer would trade their surplus for...
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...A New House-Economy Checkpoint Chante Yokley XECO/212 December 11, 2011 John McGee A New House-Economy The FED impacts national fiscal policies through interest rates, which impacts the demand in the housing market (Mankiw, N. G., 2007, p. 657). The Department of Treasury introduced a refinancing program that allows consumers to refinance mortgages to take advantage of lower interest rates. The Fiscal Policy impacts prime lending rates, which are the determining factor in consumer borrowing. The higher lending rates mean a higher price paid for a new home. As rates increase, demand decreases causing a decline in the housing market and an overall lag in the economy. A contractionary fiscal policy would provide a short-term decrease in the money supply but would provide lower inflation in the long-run, reducing lending rates and increasing the aggregate demand in the housing market (Mankiw, N. G., 2007, p. 778, pp. 5). The strength of the economy would create an increase in marginal benefits, exceeding marginal costs by strengthening home owner’s equity. The government offers programs and tax incentives (deductions) that subsidize home ownership, making it affordable to be a homeowner. One in particular is the Mortgage Interest Deduction (MID), a popular tax break for middle to higher class citizens; research shows that the beneficiaries from the MID are in these societal classes (Stansel, Dean & Randazzo, Anthony, 2011, executive summary, p. 6). There...
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...corporate leadership. Also the the website provides critical information and challenges that the world faces including annual reports, value creation, high performing organizations and human capital. The source gives helpful updates with stock prices rather they have increased or decreased. There is research incorporated with insights captured through extensive work and feedback which is also shown in order for the businesses to make the right decisions. This week was a bit confusing to me trying to figure the difference between the Keynesian and classical economics but, I have come to a conclusion that some believe paying with taxes is the better way to go. Others say it's best to adjust government spending levels but, taxes and government spending are both Keynesian fiscal policy tools to manage the economy and if it’s done in the right way, both can have the same results in the end. In addition, they accomplish those results in different ways. So Keynesian is the man behind aggregate demand and aggregate supply including an understanding how they inter-relate and can be used to manage the economy. References This is a hanging indent. To keep the hanging indent format, simply delete this line of text using the backspace key, and replace the information with your reference...
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...Models Fiscal policy conveys the government’s selection concerning the use of government expenditures and taxation to regulate the aggregate level of economic activity. In contrast, fiscal policy includes changes in the level of government expenditures or taxes, and their financial position. The main points of fiscal policy generally focus on deficits and debt, beside taxation, and the level of spending. Monetary policy consists of the central bank’s control of the availability of credit in the economy to accomplish the intentions of economic policy. Control can be applied through monetary system by operating on aggregates; money and credit supply, interest rates, and exchange rate. However, the fiscal policy may impinge on monetary policy. Expansionary fiscal policy increases government spending or decreasing taxes (Colander, 2010), but the increase of government spending can cause an excessive deficit or debt. However, the excessive deficit, in turn will lead the government to borrow to finance the deficit. In addition, lowering taxes decreases the government income, increase disposable income, and economic growth. Contractionary fiscal policy decreases government expenditures or increases taxes (Colander, 2010), but contractionary is the purpose of decreasing aggregate demand, and controlling inflation. In addition, contractionary fiscal policy may result in some unemployment (Colander, 2010). Therefore, the fiscal policies currently recommended by government leadership...
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...Assignment On Fiscal Policy Issues: ← What is the most prominent document that elaborates the Fiscal Policy of Bangladesh? ← As head of the government how would you design your next fiscal policy? Submitted By Md. Mizanur Rahman Roll No: 03 MPA in GPP April 18, 2011 Introduction Fiscal policies play a main role to the economic development of a country. It is the decision of the government about How to earn revenue and gather resources from various sources, for what to spend those earnings and resources, how much to spend and, when to spend. Main elements of fiscal policy are a) Government income and b) Government expenditure The most prominent document that elaborates the Fiscal Policy of Bangladesh is the National Budget passed in the Jatio Sangsad (The National Assembly of Bangladesh) every year. Fiscal Management in Bangladesh Fiscal management one of the big challenges for any government and it is more crucial for a developing country like Bangladesh. So the policy makers need to design fiscal policy very carefully. Maintaining macroeconomic stability and attaining economic growth are the main tasks. So we need to go through the following process to designing and managing fiscal policy: ➢ Inflow of money management for government income ❖ To maintain its daily activities, i.e. to run the government ❖ To ensure protection for the helpless ❖ To provide necessary services to...
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...dollar amount of all goods and services is calculated to eliminate confusion. If the quantity of all goods and services were just measured, then the result would misinterpret the findings. GDP is an important tool to analyze total income a household or firm spends on particular items, giving insight into the state of the economy. By measuring GDP, the government can examine where money goes; is it being deposited, is the money being spent on taxes, or is it being invested into stocks and bonds. The flow of money from households into the financial system make it possible for firms to borrow, which is crucial to any economy. GDP measures the business cycle as well as it can, but cannot be the only determining factor; inflation and unemployment play vital roles as well. The term Fiscal Policy refers to changes in federal taxes and purchases that are intended to achieve macroeconomic objectives. Fiscal Policy is the government’s way of offsetting times of instability in the business cycle. Congress and the president conduct changes in the way money is being spent and how taxes will be handled. The government is employing fiscal policy when they make decisions on the goods or services they purchase or the taxes they collect. The impact of any change in the government’s budget is felt by various groups. These changes meant to be beneficial, can also result in negative...
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...Fiscal Policy Paper ECO/372 Principles of Macroeconomics The American tax paper relief of 2012, (ATRA), which was enacted on January 2, 2013 permanently extended the 2001 and 2003 federal income tax cuts for 98 percent of tax payers. The tax relief act reflects the approach sunporch that balances responsible reductions in government spending with new revenues and increased progressivity of the tax code. But the new law extended the expansions of several tax credits enacted in the American recovery and reinvestment act of 2009 (the recovery act) that have provided economic opportunities through tax relief and college expense assistance to 25 million low-and middle-income students and working families each year. Together with the additional Medicare and investment income taxes for high-income tax papers in the affordable care act (ACA), ATRA has made the federal taxes system more progressive. Government spending first reached $1.5 trillion in the mid 1980’s, and then breached $2 trillion in the recession year of 1991. In the 1990” s spending increases starts to level off, reaching $3 trillion in 1999. But in the 2000” s with the dot-com crash and the response to 9/11 government spending began to accelerate, reaching $4 million in 2004 and $5 trillion in 2008. Then came the crash of 2008 and government spending exploded years of modest in nominal dollars, spending is expected to resume regular increases by the late 2010’s. Income taxes must be filed by all businesses and...
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...Explain how both fiscal and monetary policy decisions have affected a selected business In this part of my assignment I will be explaining the use of fiscal and monetary policy and how these policies affect global/international organisation. The organisation I have chosen to refer to in this part of my assignment is Microsoft. Microsoft is an American multinational software corporation headquartered in, Washington that develops, manufactures, licenses, and supports a wide range of products and services related to computing including Laptops, computers, Xbox 360 and Xbox one. The company was famously founded by Bill Gates in 1975. Microsoft is the world's largest software maker measured by revenues and so far has made $77 billion up to now in 2013 alone. Fiscal policy Fiscal policy is the use of government expenditure and taxation to try to influence the level of economic activity. The varied use of raised and lowered fiscal policies can have a number of effects on customers, public sector organisations such as the NHS and Police and private limited organisations such as Tesco and Microsoft. Below I will describe how different fiscal policies will directly affect Microsoft and its customers. Cuts in income tax If the government fiscal committee decide to cut income tax then this has a direct effect on organisations because it means Microsoft will gain more disposable income and capital spending as some of their revenue income which would go to government is being kept and...
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...The UK government sets monetary policy by adjusting the funds rate. This affects other short-term and long-term rates, including credit-card rates and mortgages. Governments define fiscal policy by setting taxation levels and writing legislation and regulation for everything from health care to the environment. Fiscal and monetary policy changes can affect businesses directly and indirectly, although competitive factors and management execution are also important factors. Businesses Go through cycles of expansion, recession and recovery. Monetary and fiscal policies can affect the timing and length of these cycles. In the expansion phase, the economy grows, businesses add jobs and consumer spending increases. At some point, known as the peak, the economy overheats and the government increases interest rates to stave off inflation. Factories shut down, job losses rise and business sales fall. Rate cuts and government spending, or both, are often necessary to recharge the economy. Eventually, the economy hits rock bottom, known as the trough, and gradually starts to recover. Fiscal Policy Fiscal policy usually involves changes in taxation and spending policies. Lower taxes mean more disposable income for consumers and more cash for Balfour Beatty to invest in jobs and equipment. Stimulus-spending programs, which are short-term in nature and often involve infrastructure projects, can also help drive business demand by creating short-term jobs. Increasing income or consumption...
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...Discuss the difference between Keynesians and monetarists over the effectiveness of fiscal and monetary policy in the IS-LM framework. Introduction In economics there are two main schools of thought; these schools differ in their belief of what policies are best suited to attain full employment in the economy. Keynesians tend to favour demand side policies and are more prone to intervene in the market and therefore prefer to use fiscal policy whilst monetarists believe adjustments in money supply is more appropriate in stabilising the market ,therefore preferring monetary policy. In this essay I will discuss the views of Keynesians and monetarists regarding the effectiveness of monetary and fiscal policies in controlling aggregate demand through the IS-LM framework. I will first provide a brief description of the curves explaining their formation and what they represent and then I will go on to examine monetary and fiscal policy within the IS-LM framework. Finally, I will examine the views of monetarist and Keynesians regarding the effectiveness of both policies in raising the level of national l income and also consider the extreme cases. IS-LM framework The IS-LM model was initially developed by John Hicks in 1937 but was made popular in 1949 by Hansen in order ‘to provide a framework for analyzing the factors determining the level of aggregate demand’. The IS-LM model is a short run model of the determination of output. It shows the unique combination of income...
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...to which an organization meets the objectives of different Stakeholders. 4 P1.3. Explain the responsibilities of an organization and strategies employed to meet them. 4 P2.1. Explain how economic systems attempt to allocate resources effectively. 5 P2.2. Assess the impact of fiscal and monetary policy on business organizations and their activities. 6 P2.3. Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization. 8 Conclusion 9 References 10 Introduction In this assignment I will describe the types, content and objectives of business organizations and the surrounding business environment which is the sum of all external forces, actions and conditions that affect it and the opportunities to meet its contractual obligations, improve relationships with customers, as well as the opportunities for future development. The external factors are the elements of the ambient environment. I will define the components of the business environment which is composition of micro and macro environment. I will try to provide suggestions for better competition policy in the UK business environment. P1.1. Different types of business organizations and their purposes. There are three sectors in the UK traditional industry. For example in the primary sector the consisting industries are as mining...
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...are known potential shocks in the coming months – the risk is rising of a dangerous economic slide. The Brookings Institution-Financial Times Tracking Indices for the Global Economic Recovery shows a steep drop in 2012 so far, leading professor Eswar Prasad of Brookings to describe the global economy as “on the ropes”. In the International Monetary Fund’s twice-yearly World Economic Outlook, published this week, Olivier Blanchard, the fund’s chief economist, said the world economy was hamstrung by uncertainty, which was pre- venting companies from investing and households from spending. “Worries about the ability of European policymakers to control the euro crisis and worries about the failure to date of US policymakers to agree on a fiscal plan surely play an important role, but one that is hard to nail down,” he said. The renewed concern about the health of the global economy marks a depressing return to fear after an initially strong global recovery. World output jumped 5.1 per cent in...
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...in which financial instrument are exchanged and in which the equilibrium level of the interest rate is determined. * Policy Effects in the Goods and Money Markets * Expansionary Fiscal Policy – An increase in government spending or a reduction in net taxes aimed at increasing aggregate output (income) (Y). * Expansionary Monetary Policy – An increase in the money supply aimed at increasing aggregate output (income) (Y). * Crowding-out Effect – The tendency for increase is government spending to cause reductions in private investment spending. * Interest Sensitivity or Insensibility of Planned Investment – The responsiveness of planned investment spending to changes in the interest rate, interest sensibility means that planned investment spending changes a great deal in response to changes in the interest rate; interest insensibility means little or no change in planned investment as a result of changes in the interest rate. * Contractionary Policy Effects * Contractionary Fiscal Policy – A decrease in government spending or an increase in taxes aimed at decreasing aggregate output (income) (Y). * Contractionary Monetary Policy – A decrease in the money supply aimed at decreasing aggregate output (income) (Y). * Policy Mix – The combination of monetary and fiscal policies in use at a given time. * The Aggregate Demand (AD) Curve * Aggregate Demand (AD) Curve – A curve that shows...
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...of for-profit and nonprofit organizations will be compared and contrasted. This paper examines the impact of the current fiscal and monetary policies on the economy. A selected product or service will have a strategy for accessing global markets outlined. In the world of business, there are certain constants that exist throughout. One the most important factors being the overall environment itself. The term Business Environment is pretty self-explanatory, and means exactly what it sounds like. The Business Environment is simply a set of different conditions and variable that dictates the nature of the current business environment. The role of business becomes an important factor in determining the flow of this current environment. Business, whether it is large or small scale, is the heartbeat of any economy. Companies that primarily focus on profit margins and financial rewards differ from those that business models consist of mission statements usually geared toward promoting the “greater good”. For-profit and non-profit organizations both play vitals roles in the fluency of the economy’s welfare overall. Behind every economy lies a set of governing rules that work as guidelines to that economy. The United States has its own set of policies that do just that. Currently, there have been some shifts in some of the country’s monetary and fiscal policies that have had a direct impact on the economy....
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