Fiscal Cliff Impact And Decisions

1582 words, 7 pages

Intro Sample...


ECON 1

With the “Fiscal Cliff” coming close, it is important that we take a look at the effects of different kinds of cuts and increases in spending and taxes will have on the economy. The decisions that the Congress makes is very important because we are at a time where increasing GDP is very important to US recovery, as the US is just coming out of recession. Many believe that if no action is taken regarding the fiscal cliff, then the US will spiral back into recession, especially because GDP will drop so much. This is because a $600 billion dollar cut will have an even larger effect because of the multiplier effect. Overall, my opinion is that Congress should do something small, letting most but not all of... View More »

Body Sample...


The US always has some structural deficit; it’s just that now the structural deficit is rather high. Structural defecit is considered a liability because if lenders were to call upon the US to pay their dues, which makes up the structural deficit, then government spending would have to go to paying of debt instead of stimulating the economy, which would decrease GDP, and possibly send the US back into recession. This is a huge reason why policy makers are frantically trying to decrease the structural deficit, because of the liability
In the case of monetary policy, which is conducted by the Federal Reserve and its board of governors, the Fed is indeed facing the zero lower bound, where interest rates are almost at zero, and the Fed cannot really decrease the rates. Of course, the Fed cannot charge a negative interest rate. Generally to stimulate the economy, the Fed will decrease interest rates by buying T-bills to increase the money supply, which will increase investment spending which will increase aggregate demand in the economy, which will increase GDP. This helps to bring a nation out of recession. With tax increases and spending cuts, the US needs to counteract this with expansionary monetary policy, by increasing the money supply through a decrease of interest rates, but because of the zero lower bound, they can no longer do this. So now the Fed is using quantitative easing to buy other types of securities to increase the money supply. The goal is to increase the money supply without changing the interest rates too much. Currently the Fed is buying up mortgaged ...

Read More

Related Essays on Fiscal Cliff Impact and Decisions

  • Development Of Children In Their Early Stages - Observation Paper

    2633 words, 11 pages

    FCNS 230 – Child Development Section 1: Introduction This project is about seeing the development of children in their early stages. On March 15, 2016, I went to Loving Touch Daycare to observe Airiyelle Coleman. When I was a kid, I used to go to this daycare. Their curriculum is to help develop the social skills and teach the children the basic skills they need for when they go into kindergarten in elementary school. They learn new material each day and also retain previous information taught before. Before going into the observation, I did not know Airiyelle beforehand. I met her and her

    View Document »

    Foreign Investments In Central Asia: Past, Present, And Future

    7354 words, 30 pages

    GEO55 Introduction Since their independence in 1991 Central Asian states have each struggled to keep up with the innovations and economies of the modern world. Much of the development in each country is contingent upon the ability for countries to gain foreign investment to build infrastructure and economies. In this paper I will analyze the state of Central Asian economies as they pertain to the natural resources, infrastructure, human resources, and government in each respective state. Each of these four categories helps define the current state and the future of foreign investment i

    View Document »

    Bally Total Fitness Recommendation

    5736 words, 23 pages

    UGBA 106 Introduction The health club industry is an industry that is plagued with rapid growth and increasing competition. Clubs are struggling to stay competitive niche and emerging markets while remaining profitable. Many clubs seek multiple forms of revenue, Bally Total Fitness (Bally’s) being no exception. As one of the largest health conglomerates, Bally’s has had an interesting past riddled with successes and challenges. In the past few years, Bally’s has been largely scrutinized and has struggled to maintain positive net income and declining stock prices. This report serves as a re

    View Document »

    Gender In Us Islamic And Orthodox Jewish Sacred Spaces

    6514 words, 27 pages

    ASMST 150 Introduction Across the globe there are millions of mosques and synagogues that serve as sacred sites for Muslims and Jews respectively. Each sacred site serves different purposes, including refuge for those less fortunate, a community center for the ethnic, a place of religious thought, a place of worship and prayer, and a place to share and rejoice with one another. The list goes on and on, but the underlying theme of all sacred sites is that they are to be a place of pilgrimage on the local, national, and global level. But pilgrimage for whom? There

    View Document »

    Buddhist Economics: Dethroning Capitalism

    5028 words, 21 pages

    EALC120 Buddhist Studies C120 Introduction Economics are principles that surround the entire world. They are principles that people in all industries, fields, and income levels are effected by. They play an important role in how many individuals live and how different countries’ governments operate. Mainstream economics in its entirety is now seen as something very controversial because of the widespread environmental devastation and socioeconomic disparity globally. Many argue that mainstream economics are a tool of the wealthy and the politically powerful, and that

    View Document »

    Redemption In The Ring

    3958 words, 16 pages

    The sounds of blaring sirens and heavy traffic were muffled inside the Osaka Boxing Center, where all that could be heard were the heavy outcries from the audience. The grand finals to determine the Middleweight California State Champion was about to commence. The two fighters were longtime rival and friends Damon and Alfonso. Both fighters were known for their sense of compassion and nobility, especially being boxers, but recent tabloids claiming that Damon would triumph contaminated Alfonso with a sinister state. As the two boxers approached the ring, both were met with a swarm of interviewe

    View Document »

    E-waste Nightmare: Guiyu, China

    4022 words, 17 pages

    Electronic waste, or E-waste, has become an increasingly large dilemma, especially in this day and age of the twenty-first century.  Many things about electronic waste is discussed here such as the causes and effects of E-Waste in general. More specifically, what is discussed is how humans have a large contributing factor to this problem.  The following also provides examples of any efforts humans are putting in to fix the waste.  More specifically, the paper discusses electronic waste in Guiyu, China and how it affects its residents and their lifestyle. Lastly, preventative measures are offe

    View Document »

    Aligning Education Systems

    3962 words, 16 pages

    Since it’s implementation in 2002, the No Child Left Behind Act (NCLB) has been intended to boost student achievement and hold schools accountable for students’ progress. This act was met with sweeping support. The business ideals incorporated into the act in the form of accountability were thought to produce achievement in students just like in the business world. However, the act that was passed with flying colors was quickly met with concerns. One of the biggest flaws of NCLB was that it called for 100% proficiency on standardized tests nationwide by all students by the year 2014. The targe

    View Document »

    Affordable Care Act

    4112 words, 17 pages

    In this paper, a proposal to amend the Affordable Care Act, Title IV, Subtitle B, Section 4101 was made. The amendment proposed is to allow the grant given to people and facilities to use that grant for health purposes rather than to have it focus solely on making the facility itself impressive looking, because it does not matter whether a facility looks good if the care it provides is horrible. The first topic mentioned is to allow and expand the Affordable Care Act to include the school-based system and allow these schools’ medical fields (i.e. nurse’s office) to provide better care. Then, t

    View Document »

    Going Beyond The Mask - A Look Into How Masks Have Evolved Through Time

    2464 words, 10 pages

    Ancient Greek masks were often used in theater. They had brass megaphones, where the mouth of mask was to amplify the actor’s voice. These masks expressed the emotion of the characters. In some cases, the masks have evolved into something more vivid. They reveal the truth behind a character. Thinking about the character “Two-Face” from the Batman series shows his good side and bad side through his new mask: his face. The good side is his normal half. The bad side is the side where acid eroded the skin, resulting in a scar. This is a representation of the evolution of masks in the 21st Century

    View Document »

More Popular Essays

Research help is just moments away!