...United States Deficit, Surplus, and Debt ECO/372 United States Deficit, Surplus, and Debt In the United States, the deficit, surplus, and debt of the nation have an effect on many aspects of the nation’s economy. Taxpayers carry heavy burdens, both today and in the future, to support the economy as it recovers from a recession. Future Social Security and Medicare users face uncertainty and possible poverty as current negative cash-flow eats away at the integrity of future Social Security and Medicare. The effects of a high unemployment rate create a ripple effect that certainly will reach into the economy of coming years. Gross Domestic Product is affected as international trade and deficit fluctuate with the country’s interest rates, inflation, and dollar buying power. Even University of Phoenix students see the effect of these economic aspects in their tuition. Although these are not the only issues of concern in the current economy, these serious issues are affected by the deficit, surplus, and debt of the nation. According to experts, the taxpayers eventually will pay the costs of today’s deficit tomorrow. To finance last year’s trade gap, Americans had to borrow $503 billion in international markets. Foreigners will buy billions of dollars’ worth of United States corporate mortgages, and government bonds. They lend Americans the money needed to import more from the rest of the world (Ackerman, 2004). The additional expense is the burden of the American taxpayer. Meanwhile...
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...Fiscal Policy Paper Deficit can affect multitudes while a surplus creates positive results for those on the receiving end. A debt requires the liability to be paid or the liability may be repossessed or rendered bad credit to the individual. While Americans face issues with debt, surplus, and even deficit it is important to know that the United States deals with it first hand as well. Several areas the three topics affect include tax payers, unemployed, Social Security, Medicare, imports, exports, and the GDP. A synopsis of Team B’s discussion of the topics follows. Tax Payers Taxes are imposed on the United States by three categories; federal, state, and local government. Tax payers are taxed on their income, payroll, property, sales, imports, estates and gifts, as well as various fees. Tax payers are required to file tax returns whether it be for a business, corporation, or individual. Tax payers are affected by the U.S. deficit when there is a shortfall in revenue which is the result from the National Debt increasing. Additionally when there is a surplus tax payers are affected as well. Future Social Security and Medicare Users Social Security Administration figures that by the year 2040 the SS trust fund will be used up causing utilizing one of three options: borrowing, increasing revenue, or lowering benefits. The Medicare program is estimated to be much closer to crisis than the SS trust fund. In contrast to current Medicare and Social Security benefits budget...
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...is one of the first things reviewed. A solid education will allow for opportunities that may not have been available without it. In previous decades college was looked at as a luxury and therefore not essential for such opportunities. With today’s new fad of attending college it has made the job market extremely competitive. And with this competition the better education background you have, the more of an advantage you have over others. Many base success on your career and status which is often founded by a good education. Like anything, education has its cost and it does not come cheap. The average college student graduates with 26,000 dollars in debt. As it may seem college is expensive enough. However, because of inflation, the demand for a solid education, technology, and resources, college cost is increasing at a rapid rate that will not only affect the common student but also take a toll on the society as a whole. Inflation is usually known to be the cause of the general cost of living increasing over time. Inflation causes the consumers buying power to be decreased. With the price of foods, goods, and services increasing, that also includes college. Naturally as cost increase we seek more income. That is not to leave out the incomes of college authorities and staff, they also expect more. That is one cost that is caused by inflation. Inflation also causes college cost of on campus dining, books, and materials to rise. This cost causes a direct impact of student’s finances...
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...bankrupt paying for it. Since the institutions are allowed to set rate on tuition it is only becoming more difficult for students pay. As a result, students have to seek alternative ways to cover the hefty costs. It seems as tuition went from affordable to sky high overnight and because of such an exponential increase it has forced a negative effect on students by: having to join the military, taking out student loans, developing health issues, and even selling drugs....
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...Italian Clothing Company The deficit, surplus, and debt of the United States affects an Italian Clothing Company because; when it comes down to the United States deficit, it would cause the market to be over-run by foreign products. The rate in which a country is exporting is not at the level with it’s’ exports, a surplus would lead to more importation by the Italian Clothing Company and debt, it would cause the imports to be reduced (because many business partner would be hesitant to do business with the importer. Gross Domestic Product (GDP) Effects on Italian Clothing Budget Deficit Expansionary polices, such as those incorporated into an economy during a recession, have positive effects for imports. Increasing the money supply will increase an American consumer’s option to purchase more foreign goods such as Italian clothing (Colander, 2010). Budget Surplus Contractionary policies, such as those that may occur in an economy operating at its productive capacity will have a negative effect on the purchase or Italian clothing. Levels of trade with foreign countries will decrease from the peak productive period. Debt Initiatives to pay-down the United States debt could have a negative effect on the economy, thus reducing the demand for Italian clothing. However, if efforts to lower the debt are successful there will be less tax burden on consumers in the future leading to more opportunities for foreign trade. An Italian Clothing Company (Importing) When the...
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...whether the firm should embark on a campaign of corporate-image advertising, and change its corporate name to reflect its new outlook. The case serves as an omnibus review of the many practical aspects of the dividend and share buyback decisions, including (1) signaling effects, (2) clientele effects, and (3) the finance and investment implications of increasing dividend payouts and share repurchase decisions. This case can follow a treatment of the Miller-Modigliani dividend-irrelevance theorem and serves to highlight practical considerations to consider when setting a firm’s dividend policy. Suggested Questions for Advance Assignment to Students The instructor could assign supplemental reading on dividend policy and share repurchases. Especially recommended are the Asquith and Mullins article on equity signaling, and articles by Stern Stewart on financial communication. 1. In theory, to fund an increased dividend payout or a stock buyback, a firm might invest less, borrow more, or issue more stock. Which of those three elements is Gainesboro’s management willing to vary, and which elements remain fixed as a matter of the company’s policy? 2. What happens to Gainesboro’s financing need and unused debt capacity if: a. no dividends are paid? b. a 20% payout is pursued? c. a 40% payout...
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...Kylie Per.2, 9/30 Going to a four year college can give you many amazing future opportunities but will rob you of both time and money. To start, though many ,including President Obama himself disagree, the article, “Why College Isn’t (and Shouldn’t Have to Be) for Everyone” by Robert Reich and interview, “Why Kids Shouldn’t Go to College” stress the effects student loan debt can be on students and how there should be an alternative for post high school education. To begin, the interview, “Why Kids Shouldn’t Go to College” by James Altucher explains how debt is affecting the nation. To start, the country has never been in so much debt, “we passed as a country 1.1 trillion in student debt.” This quote is significant because it displays how debt is not only affecting...
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...Forgiving student loan debt has become an America crisis that affects everyone who has ever been a student to acquire more debt. At this time more people are trying to get financially stable so that they can secure a better future for themselves without increasing their debt. According to Wolfer, the article Applebaum wrote lacked effectiveness, and was pointless in his response to Applebaum student loan forgiveness petition. Convincing his argument against Applebaum proposal, Wolfer included that giving one thousand dollars to fifty unfortunate students may help with the crisis of student loan debt. Wolfer proves his personal opinion in remarks towards students lacking to want to pay back student loans debt and because of his remarks I think...
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...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 lend. The more money banks have to lend competitively, consumers purchase items at lower interest rates and support stimulation in the economy. * Deficits can cause a cloud over the taxpayers. The bills need to be paid, and it will fall on the taxpayer to assist in lowering the debts. Armed with...
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...Fiscal Policy Fiscal Policy The United States’ deficit, surplus, and debt have had and are currently continuing to have a profound effect on the economy of this country. Although the federal government could play more of a role in boosting exports through tax reform and training assistance, some industries are staging a comeback on their own without help from Washington, because of improving marketplace trends. Taxpayers and Unemployed Individuals The United States' deficit, surplus, and debt have a very far-reaching effect on taxpayers and unemployed individuals. The immediate effect on taxpayers is as the deficit goes up and debt does as well the taxpayers are going to absorb the brunt of repayment. This will also indicate that as the deficit climbs and debt becomes larger that the dollar will become less valuable. The dollar losing value means that employers as well as consumers will have to be more careful with their money. The trade surplus has very little effect on the consumer because without a tariff in place on the outgoing goods it does not offer much if any of a return to the taxpayers. While the taxpayer and employers are watching every last dollar that makes it harder for the unemployed individual to get a job in his field. At this stage high quality jobs are harder to come by because employers have to make cuts to maintain pre-recession profits. Therefore, unemployed workers are forced to stay on unemployment or try for jobs with lower skill qualifications...
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...Vidhisha Mannah-Singh Student # 058-206-145 Complications related to teenagers Today in the modern society, there are lots of problems, specially related to teenagers. For example, lack of education because of poverty, problems related to drugs, alcohols, teen pregnancy, overuse of modern technology for instance cell phone, computer, internet and social media, and overspending money by taking personal loans, overuse of credit card and overdraft in bank account. Major issue facing adolescence is related to overspending and iGeneration. iGeneration refer to anyone born after 1990s. `ì` represent technology used by children and adolescents like iPhone, iPad, iTunes and iPod. Technology is very important for iGeneration. Young people in the 1960s had fewer option regarding education, career opportunities and entertainment compare to young people today. There are so many negative impact of technology and government overspending of money on children. First of all, Technology cause many health related problems in teenagers such as weak eyesight, obesity due to less physical activity, decreased memory power by using digital technology and back pain(. Technological device influence social relationship because children addicted to gadgets and social media like Facebook, Twitter and Instagram. They don’t have time to sit with their parents and relatives. Technology have negative effect on education. Children...
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...2014 Student Loans Rising An Overview of Causes, Consequences, and Policy Options William Gale, Director, Retirement Security Project, The Brookings Institution, and Co-Director, Urban-Brookings Tax Policy Center Benjamin Harris, Deputy Director, Retirement Security, The Brookings Institution, and Fellow, Urban-Brookings Tax Policy Center Bryant Renaud, Research Assistant, Economic Studies, The Brookings Institution Katherine Rodihan, Claremont McKenna College The authors thank Elizabeth Akers, Matthew Chingos, Donald Marron, and Russ Whitehurst for helpful comments. The authors also acknowledge generous research support from the Ford Foundation. Introduction As of 2013, outstanding student loan balances in the US exceeded $1.2 trillion, more than any other type of household debt with the exception of mortgages.1 Following several years of rapid growth in outstanding loan volumes, student debt burdens have attracted increased attention in recent years. This policy brief reviews trends, issues, and policy options related to student loans. Federal student loans offer several important benefits. They help students attend institutions of higher education and help families cover or defer the costs of attendance. However, like other loans, student loans need to be repaid, which can strain borrowers’ income and affect other economic choices. From the outset, we note that isolating the impacts of student loan debt is a difficult exercise. Student loan debt represents debt undertaken...
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...As a citizen living in your riding, I am writing to you to express my concerns about high college tuitions. I am currently a first year student attending Georgian College, studying Police Foundations. Most of my good friends have gone off to different colleges around Ontario and we all have one thing in common, that our student debt is starting to increase. It is my belief that high college tuitions have a negative effect not only on individual citizens, but also on the future of Canada. In the past few years, college tuitions has hit an all-time high with no intent of slowing down. With the recession that has happened and the cost of living increasing, it is becoming extremely difficult for students to pay for tuitions. This results in a...
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...The student loan debt crisis is a major issue in the United States. Every day, students are dropping out of college because they cannot afford college. Ever since college tuition went up in the 1960s, the student loan debt has risen. Student loan debt takes a major effect of student’s lives after college is over and they must start paying their loans off. On average, students take out as much as $28,000 to $30,000 of student loans (Holland). Taking out these large amounts of loans cause students to dig a hole of financial debt for themselves. From the history of student loan debt to the current solutions that could solve the debt issue, student loan debt will always be a constant issue in students’ lives unless drastic measures are taken to...
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...The Negative Effects of Tuition Fee Increase to the Academic Performance of First Year Students of the University of Mindanao GROUP 6 Setting Problem The Problem And Its Setting Tuition fees are fees charged for instruction during higher education. Tuition payments are charged by educational institutions in some countries to have funding on school equipment, staffs, teachers, and facilities to provide a comfortable learning experience. In some countries there are no or only nominal amount of tuition fees in all forms of education, including Universities and higher education institutions. In a country like the Philippines tuition fee is a very sensitive thing for every Filipino once it increases a wave of reaction follows. It’s no surprise since the country is still in developing state and probably millions still under the poverty line defining the economic status of every Filipino. When we have a closer look of the problem you probably see the reality in which it affects as much as tuition fee is concerned, the academic performance of students. Students who choose to stay in school may have to work longer hours at more demanding jobs to cover their expenses. This can interfere with academic performance. A 2002 study by the State Public Interest Research Group's Higher Education Project found that working full-time can harm grades. Forty-two percent of survey respondents reported that working hurt their academic progress, and 53 percent reported...
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