Fiscal Policy

1119 WordsOct 19, 20135 Pages
Fiscal Policy Learning Team C Fiscal Policy The United States impacts various policies not only at home but abroad. It has been a powerhouse for many years, and its strengths and weaknesses impact other countries. The deficit, surplus, and debt are three major areas influencing these policies. These three factors have a huge impact on many areas we will discuss. These include taxpayers, the future of Social Security and Medicare users, the unemployed, a University of Phoenix student, the United States’ financial reputation on an international level, a domestic automotive manufacturing, or exporter, Italian clothing company, or importer and Gross Domestic Product (GDP). Italian Clothing Company The United States’…show more content…
Social funds such as these have their own funding scheme that’s not tied to other federal bodies or accounts (Mankiw, 2011). A domestic automotive manufacturing (exporter) The effect that the U.S.'s deficit, surplus and debt have on a domestic automotive manufacturing exporter starts with the decline in auto sales. The deficit in the economy is followed by a decline in spending and lowered auto sales. A decline in auto sales reduces employment due to lower demand and adds to trade deficits. When the U.S. is unable to sell to other countries we are forced into a surplus. Businesses fail leading to government bailouts. The government spends money going into debt to save these companies. Unemployed Individuals The deficit affects unemployed individuals because the people who need help, cannot get it, or cannot get enough to help supplementing their income until they find employment. A surplus provides help with unemployment benefits; WIC and other programs. Debt leads to higher taxes, making sustainability difficult for themselves and their families. University of Phoenix Student The deficit affects a University of Phoenix student because funding for financial aid could be compromised leading to more private loans. Loans become

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