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Fiscal Policy

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Fiscal Policy The people of the United States are by the fiscal policies. Team C will address the how and why the U. S. budget deficits, budget surpluses, and debt affect different individuals and institutions. There is a wide array of individuals affected by fiscal policy, which include tax payers, future Social Security and Medicaid users. The unemployed individuals and University of Phoenix students will be affected by fiscal policy. The U.S. financial reputation, an exporter, and importer, and affects of the GDP will also be covered about the affects of the U.S. fiscal policy.
Effects on Tax Payers The U.S. budget deficits can affect tax payers in a negative aspect by increased taxes to offset the deficit. The budget deficit …show more content…

The long-term effects would mean less taxes and higher profits for car companies tomorrow (Colander, 2010).
Effects on an Italian Clothing Company (Importer)
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).
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.
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 leading to more opportunities for foreign trade.
Effects on GDP The United States Deficit affects the GDP when the deficit causes companies to move their business oversees. The surplus could be used to help support the United States companies that operate within the United States. The United States debt and deficit affects individuals and the future of Federal Government programs. These programs could be student loans to Medicare. The Government

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