The US National Debt

â€Å"Spending financed not by current tax receipts, but by borrowing or drawing upon past tax reserves. † Is it a good idea? Why does the U. S. run a deficit? Since 1980 the deficit has grown enormously. Some say it is a bad thing, and predict impending doom, others say it is a safe and stable necessity to maintain a healthy economy. For nearly 150 years the U. S. government managed to keep a balanced budget. The only time a budget deficit existed during these years was in times of war or other catastrophic events. For instance, the government created deficits during the War of 1812, the recession of 1837, the Civil War, the depression of the 1890s, and World War I. However, once each incident ended the deficit would be eliminated. The economy was much stronger than the accumulated debt and would therefore quickly absorb it. The last time the budget ran a surplus was in 1969 during Nixon’s presidency. Budget deficits have grown larger and more frequent in the last half-century. In the 1980s they soared to record levels. The government cut income tax rates, greatly increased defense spending, and didn’t cut domestic spending enough to make up the difference. The deep recession of the early 1980s reduced revenues, raising the deficit and forcing the Government to spend much more on paying interest for the national debt at a time when interest rates were high. As a result, the national debt grew exponentially in size after 1980. It grew from $709 billion to $3. 3 trillion in 1990, only one decade later. (See Table 1) Federal spending has grown over the years. If you compare actual dollars and their proportion to the economy (Gross Domestic Product, or GDP), much of it began in the 1930s. Beginning with the â€Å"New Deal†, the Federal Government came to play a much larger role in American life. President Franklin D. Roosevelt sought to use the full powers of his office to end the Great Depression. He and Congress greatly expanded Federal programs. Federal spending, which totaled less than $4 billion in 1931, went up to nearly $7 billion in 1934 and then over $8 billion in 1936. U. S. entry into World War II sent annual Federal spending soaring to over $91 billion by 1944. Thus began the ever-increasing debt of the United States. Is our debt increasing as fast as we think it is? The dollar amount of the debt may increase but often times so does the amount of money or GDP to pay for the debt. Some believe a deficit allows more people to work, increasing productivity. A deficit does this because it is invested into the economy by government. For example, if the government spends deficit money on new highways, trucking will benefit and more jobs will be produced. When an economic system is in recession all of its resources are not being used. For instance, if the government did not build highways we could not ship goods and thereby decrease demand for them. Because we cannot ship the items, the supply remains low even though we have the ability to produce more. This non-productivity comes at a cost to the whole economic system. If deficit spending eliminates non-productivity then its direct monetary cost will be offset, if not surpassed, by increased productivity. In the 1980’s when the huge deficits were adding up, the actual additions to the public capital or increased productivity were often as big or bigger than the deficit. This means that as long as the government spends the money it gains from a deficit on assets that increase its wealth and productivity, the debt actually benefits the economy. But what if the government spends money on programs that do not increase its assets or productivity? Consider small businesses for instance. A company invests money to hire a new salesman. He will probably increase sales and the company will regain what it spent hiring him. If the company spends money on paper clips when they already have staplers they will just lose money. This frivolous spending is what makes a deficit dangerous. The government’s net worth decreases which risks putting it into serious debt. Debt should not be a problem because we can just borrow more, right? This statement would be correct if our ability to borrow was unlimited, but it is not. At first the government borrowed internally from private sectors. The government did this by selling bonds to the private sectors, essentially reallocating its own countries funds to spend on its country. This works fine in a recession, but when the country is at or near its full capability for production it cannot increase supply through investment of deficit dollars. Deficit dollars then translate into demand for goods that aren’t being produced. Referring back to the small business example, if a company is selling all the products it can produce they can still hire another salesman. However, since there are no more goods to be sold, the salesman only increases the number of consumers demanding the product. The problems of deficit spending out of a recession even out through two negative possibilities, inflation and crowding out. Inflation means there is more demand or money than there are goods this causes an increase in prices and drives down the worth of the dollar. This depreciation of the dollar counters the cost of the deficit but destroys the purchasing power of the dollar. A five-dollar debt is still a five-dollar debt even if the five dollars are only worth what used to be a five-cent piece of bubble gum. Despite its danger, inflation is used to some extent to curb the debt. Crowding out is when the government is looking for the same capital that the business sector wants to invest. This causes fierce competition for funds to invest. The fierce competition causes an increase in interest rates and often business will decide against further investment and growth. The government may have the money to build new highways but the truckers cannot afford trucks to use on them. The governments needs will â€Å"crowd out† business needs. This turns potential assets into waste. However, there is a third option that would allow the government to run a deficit and avoid the negative aspects of inflation and crowding out. Borrowing from foreign sources is a tangible and recently very common practice. Attracted by high interest rates and stability, foreigners now buy huge amounts of U. S. national debt. Of course this cannot be the perfect solution otherwise no one would be concerned about the debt. The problem with borrowing from external sources is the lack of control the government has over foreign currency and debts. Internal debts can be paid with increased taxes, inflation, and other monetary controls the government has. External debts can extremely damaging to a country if it cannot buy enough of the foreign currency to pay the interest. Running a deficit is apparently good for an economy that is operating inside its production possibilities curve but it can be damaging to an economy otherwise. A deficit managed properly has the effect of increasing demands. An economy inside its curve can increase supplies in reaction. An economy on the curve can increase demand but its supplies cannot increase causing prices to rise, or inflation. If there is no deficit and the curve shifts to the right then supplies will not increase and the country will no longer be operating on the curve. A deficit must be maintained to insure that the economy grows with its resources. Is the US’s current debt bad or good? The trick is finding out how large the deficit should be in order to allow for growth without waste. The US’s deficit is bad at this point because the U. S. is close to its maximum production capabilities, and deficit money is being wasted. For example two of the largest portions of the budget: defense and social security. Defense spending produces little or nothing except in times of war. The way social security is managed creates a huge waste. As managed, social security is money spent to immobilize a large and fairly capable part of the work force. It encourages elderly people not to work by spending deficit money on them. Reducing productivity and increasing the debt at the same time. In its current state, the U. S. should attempt to reduce its deficit. However, eliminating it is not necessary and could do more damage than good.

Administration management Essay Example | Topics and Well Written Essays - 750 words

Administration management - Essay Example Brendan Murphy has a list of requirements, which he wants us to finish. The total budget for the project is US $60,000. The plan is to fit the scope and the schedule of the work. 2. Scope The scope of the project is to conduct two major tasks, to landscape the garden, and to fence. Apart from the core objectives, there are other tasks involved in the project such as installing electric lines and construction fishponds. The water pipes also have to be fitted in order to provide constant supply of water through all the seasons. All the tasks and processes that the company can garden have to fit within the budget of US $ 60,000. 3. Change Management Process Change management process is a very critical factor to consider because once the changes are executed, some of them are irreversible. The change management process considers the present condition of the garden and the expected results after its completion. This requires engagement of Mr. and Mrs. Murphy in a detailed interview. The i nformation they provide will be the guideline for the scope of the project. During the review of the change process, there will be need to assess the inherent risks involved and how to mitigate the risks before the change initiative can begin. If certain processes are attached to high-risk activities, then, there will be need to decline the processes and seek alternative actions (Chudley & Greeno, 2008). 4. Change Request After the interview and the risk assessment process, our company presents the request for change to our client with a summary of all the factors to consider and the expected results. As we do the request, we are mindful of the presence of our competitors who may present lower cost bids. Upon approval of the change request, we proceed to prepare the work schedule for the project (Diaz, 2013). It clear from the problem definition, that not all aspects of the garden need a change. Chang request feasibility has to be determined, and only when the change request feasibi lity has been ascertained can it move to the implementation of the activity schedule (McIntyre & Strischek, 2005). Similarly, there are areas that are completely new, including the fishpond project. The desire of our company is to encounter changes that can add value without necessarily having to attract legal challenges. The complete work schedule 5. Risk Management Risk assessment and control procedure will be required to consider the effects of these tasks on the environment and third party entities. Some of the risks to assess in this plan include: Legal Risks The processes have to be documented in a standard that complies with the regulations and policies of the government (Wood, 2012). For example, the fencing plan must coincide with the map from the government authorities in charge of planning. This is in observation that violation of legal regulations has heavy penalties. Risks of Insecurity The fencing of the garden is based on the survey of the environmental security. If t he risk is highly rated, then the control of having stronger fencing will be necessary. Additionally, there will be need to install live electric fence, and to employ security guards. Weather Changes The possibility of rainfall shortage is critical risk to the projects in the garden. The management for this is the plan for irrigation through the water pipe connections. 6. Communication The infrastructure in this environment has to support communication between the workers in the garden and between the owners and external service providers. Transport network will also be a vital factor to consider in this project (Chudley & Greeno,

Any topic you think is good for my paper Assignment - 1

Any topic you think is good for my paper - Assignment Example The perception of the society on comic book is based on abstract description given by the images depicted in articles and books. In brief, the definition is provided by the work of art (Faigley and Selzer). Ideally, Scott argues that the comic art should not be presented in the way it has been. The art should be simple and depict natural art. The creation of new approach to learning is vital, but the creation of conclusive understanding of terms of reference is essential in the education process. The definition argument by Scott highlights the difference in understanding of terms created by media and other related depiction (Faigley and Selzer). Additionally, the influence of traditional educational practices is evident in the creation of terms such as the traditional understanding words. The new definition of comic is based on comparison of other arts with the comic art depicted by work Scott is change of ideas on the comic articles, which have been perceived in a different way. In conclusion, the article by Scott redefines the term

The Financing and management of risk Essay Example | Topics and Well Written Essays - 3000 words

The Financing and management of risk - Essay Example The company has major business activities in countries like Canada, Japan, China, UK, Mexico, Taiwan, Philippines, India, etc. Apart from coffee, Starbucks also sells ice cream, cold and hot beverages, snacks, beer, etc. The products offered by Starbucks are specific to the location of the store and are seasonal and customized to the target market segment. Starbucks employs around 149000 employees in its coffee stores and operations all over the world. Through its massive chain of coffee houses all over the world, Starbucks generated revenue of $13.29 billion in 2012 with a net income of $1.36 billion for the company. The strong performance of Starbucks’ coffee business across the world is highly dependent on its business model which has been well established by the company. The business model of Starbucks lays its success story for attracting customers into its stores for a cup of coffee day after day all over the world. The coffee selling stores of Starbucks present a status symbol for the customers of coffee. Although the coffee sold in the stores of Starbucks are priced highly, it the ambience that the stores of Starbucks offer to the customers that makes a difference. The coffee selling stores are supported by friendly and helpful staffs who address the problems, queries and grievances of customers who walk in to take coffee. The customers taking coffee are largely valued in the stores which in turn help the stores to hold their customers (Starbucks Corporation, 2013, p.1). The over business model of Starbucks which is applicable to its national as well as international presence is described below. Starbucks have a transnational model of business in which it has a universal product that is customized to fit the requirements of the local market. Starbucks follows a business model whereby the coffee and other products like beverages, beer, ice cream, snacks, etc. are sold through the coffee house chains in the international markets. Starbucks products under brand names are also sold in the grocery shops and retail market chains across the world. The coffee business of Starbucks has to be responsive to the markets and fits the taste and culture of the local people who walks in to take coffee. The strong business model of Starbucks has helped them to build international relationships and achieve their targets. Starbucks original business model was based on marketing of coffee by providing enriched customer experience in an upbeat environment inside the coffee stores. In order to cope up with the competitive market, Starbucks have now adopted advertising strategies by media like newspapers, television, offering cheaper prices, etc (Kazmi, 2010, p.21). As depicted above in the diagram for business model of Starbucks, the business model takes into consideration a range of factors that includes product strategy, customer economic, marketing of coffee, cost of capital of the business, economic sale, assessing value of the business, pro duction costs, revenue mechanism, growth of assets and competitive barriers, etc. The product strategy is framed by looking at the emerging demands of the market. Apart from offering a single product of coffee, Starbucks took into consideration

LETTER OF APPEAL Essay Example | Topics and Well Written Essays - 1500 words

LETTER OF APPEAL - Essay Example Respect Sir, I basically belong to the part of the world that is often characterized by the conventional professions and money making sources. These primarily include professions like business studies, engineering, medicine and other commonly tested and practiced professions. In such environments there is little margin for experimenting or going for professions that are little tested and little known. Before I put my case, I hereby state that I am not writing to question the system of immigration in the incumbent country nor do I plan to challenge it through the claims that I may make. I am here only to seek your professionally motivating and sympathetic consideration into the personal reasons which forced me into skipping classes and breaching the original terms of visa where it was conditioned to attending the classes and completing my degree as per initial undertaking. I will also attribute the reason for the overall debacle to the immaturity and hastiness from my end, believing that the dropping out will make my parents realize instead of considering the repercussions and the possible consequences and I hold myself directly responsible for it and do not blame the law, the institution or any other individual affiliated in the entire conundrum that is at hand. To start with the particularity of my case I render an unconditional apology for having violated the original conditions and thereby request a revisiting into the case with possible grant of a fresh visa or nullifying of the decision reached as a result of the acts committed in the light of skipping classes originally. Giving a history of my family, my sister is enrolled in the field of medicine study and she is going well with her goals and there are no records of her dropping out or any other event therefore I can indirectly assure through her practices and her presence ,that if I am given a chance to follow my desired goals, it will allow me delivering the goods as per expectations and conditions

Civil Liberties, Habeas Corpus, and the War on Terror Research Paper - 1

Civil Liberties, Habeas Corpus, and the War on Terror - Research Paper Example The writ of habeas corpus demands that a prisoner be presented by whoever is holding him or her before the judge at the judge’s request. The writ of habeas corpus is an absolute protector of human rights threatened by wrongful detention and incarceration. As such, it was a strategy through which the founders of the nation promoted the separation of powers and maintenance of equilibrium between them. The writ of habeas corpus can be traced back to the English common law that checked on the excesses of the government against human rights. In the United States, the writ of habeas corpus has been questioned by various Presidents from Lincoln to Bush regime portraying elements of abuse of power. This paper explores the writ of habeas corpus in the context of war on terror and also explores if the move by the president is aimed at protecting the citizens or if it points to abuse of power because the president is the commander in chief. The Historical Evolution of Habeas Corpus Engli sh History of Habeas Corpus Habeas corpus has an ancient English history and seems to have predominantly originated from Anglo-Saxon common law (The Rutherford Institute, 2013). According to Shaw (2009), â€Å"Habeas corpus is an ancient remedy whose original purpose was to contest detention by the king† (Shaw, 2009, Para 7). ... One of its curbs on the sovereign’s power reads, in part, ‘No free man shall be seized or imprisoned†¦except by the lawful judgment of his equals or by the law of the land’† (Shaw, 2009, Para 7). The law in question was â€Å"The Great Writ† from which habeas corpus descended. The enforcement of habeas corpus became predominant during the time of Magna Carta and formed an essential component of the unwritten common law, which were expressly accepted. The Act of habeas corpus in the English law was enacted by the Parliament in 1679 (Rudolph, 2013). The English courts were empowered by this historic Act. As a consequence of the Act, the courts could now issue Writs of Habeas Corpus irrespective of whether the courts were in session or not. Despite being riddled with high levels of hypocrisy in 17th century, Habeas Corpus Act established itself as a major empowerment tool for human liberty in countering excessive exercise of power by the state. The writ of habeas corpus was expanded during 19th century to include individuals held by exclusive private processes other than the state (Rudolph, 2013). American Development of Habeas Corpus By the time Revolutionary War was taking place in America, the Writ of Habeas Corpus was already established in all the colonies of Britain and was perceived as a fundamental legal protection of civil liberties of citizens. In Article I, Section 9 of the Constitution of the United States, it is stated that â€Å"The Privilege of the Writ of Habeas Corpus shall not be suspended, unless when in Cases of Rebellion or Invasion the public Safety may require it† (Shaw, 2009, Para 7). Despite the fact that other common-law writs were recognized in the British Empire, only the writ of habeas corpus

Different Views on Assisted suicide (I Agree with Assisted Suicide) Essay

Different Views on Assisted suicide (I Agree with Assisted Suicide) - Essay Example In other words, medical profession is intended for saving life rather than destroying it. On the other hand, there are many people who believe that assisted suicide should be allowed legally in order to avoid the pain, agony and discomfort of the patients in no hope conditions. In their opinion, nobody wants to sustain their lives in miserable conditions, if the hope for a survival is completely out of question. Under such circumstances, it is better to assist those people in finishing their lives rather than forcing them to suffer the pain and agony further. In this paper I argue in favour of assisted suicide after analysing both the sides of the issue. Arguments against assisted suicide The major argument against assisted suicide is with respect to the ethical issues involved in it. â€Å"Many faith groups within Christian, Muslim, Jewish and other religions believe that God gives life and therefore only God should take it away† (Info: Ethical aspects of PAS, n. d.). Religio ns argue that life is the blessing of God and man has no authority over it. God has created human life on earth for certain missions. He takes the life back only after the completion of the mission assigned to each person. Disallowing God to complete his missions is unethical according to religions. Religions also argue that a life is waiting for every human after his death and in order to prepare for that life, God has given miseries to human in his present life. It is the duty of the human to go through all these mysteries in order to claim an eternal life after death. Religions believe that assisted suicide will prevent a person from attaining eternal life or salvation. Another argument raised by critics of assisted suicide is based on the importance of human life on earth. Even though, human succeeded in collecting information about outer universe or planets, still his knowledge about this universe is extremely limited. Science does not have any idea about whether life persists in other planets or not. In other words, earth is the only planet in which life exists as per the evidences we have until now. Thus, life becomes most precious thing in this universe. Since human has superior intellectual power, human life seems to be the most important one among other life forms and it should not be destroyed under any circumstances. The chemistry of life is still unknown to science even though we are living in a most advanced era at present. Human succeeded in unveiling many mysteries; however, the secret behind life is still uncatchable to them. Once the life is being destroyed, nobody can give it back to a person. In short, human life is the most important thing in this universe and it should not be destroyed, according to the arguments of critics of assisted suicide. The third argument against assisted suicide is related to philosophy. Many of the prominent philosophers like Immanuel Kant, John Locke etc were argued against the assisted suicide in one way or ot her. Locke argued that life, like liberty, represents an inalienable right, which cannot be taken from, or given away by, an individual. For Kant, suicide was a paradigmatic example of an action that violates moral responsibility. Kant believed that the proper end of rational beings requires self-preservation, and that suicide would therefore be inconsistent with the fundamental value of human life (Chapter 5: The Ethical Debate, 2001,