Fiscal Policy

Peter J. VanHeyst Final Paper The National Debt ? Macroeconomic Perspective For years, the issue of the organizations national debt (and its payment) has been a major political issue. As of July 1st, 2004 the federal Debt has r separatelyed an all time high of 7.252 trillion dollars (that means that each person in the United States is be over 24,000 dollars in debt). According to economists, the debt will increase by 1.6 billion dollars per day! In economical terms, a debt occurs when an individual or congregation borrows money and is charged following on that loan. The Federal authorities through deficits (spending more than what is collected in taxes) in calculate spending created this debt of over seven trillion dollars. In the rewrite aviator Flow Model in the appendix, we can teach that there is a leakage of government spending into divert paid on its debt. The dollar amount in interest that the borrower (the government in this case) must pay to simply guard the debt is called the debt service. Currently the debt service of the federal treasury is 576 billion dollars per annum; more or less 32% of the Governments total receipts (similar to and individuals income). With every borrower there must be a loaner, and this is original with the Federal Governments loan.

Currently, the debt is distributed in several areas: (See Revised Circular Flow Model in Appendix) Debt from all governmental trustfulness funds totals over 3.05 trillion dollars. Included is the 1.59 trillion dollars that has been taken from the Social Security Trust (this amount is equal to approximately 90% of the total Federal Budget). Over 4.2 trillion is owed to the customary Public in the form of U.S. Securities. In the first exposit of the debt, the government has taken money from various trust funds (accounts that lead money that is designated for a set purpose) and spent it without replacing the specie borrowed, thus creating debt. The two major funds represented inwardly this area are Medicare and Social... If you want to get a across-the-board essay, order it on our website: Orderessay

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