ith a declining economic output, we can not financially export our way out of a government budget deficit situation. Since the oil crunch of the mid-1970s, energy costs have increasingly been a part of this equation. Trade deficits are linked to budget deficits in this way. This is best presented in a May 12, 2010 article, Donna Kardos Yesalovich documented that U.S. stock futures pared earlier gains after data showed that the U.S. trade deficit widened in March of 2010 to its highest level since December 2008 (Yesalavich).
To make matters even worse, the European economic downturn is complicating things just as the U.S. downturn has sent the world economy into an extended deep recession (or depression, before this word became unpopular). Mark hitehouse in another all Street Journal article documented that markets tumbled despite upbeat reports about U.S. shoppers and factories due to the high debt portfolio of European…...

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Works Cited

Chan, Sewell. "Is Ben Bernanke Having Fun Yet?." Ledger.com 16 May 2010: Web. 19

Nov 2010. .

Erlichman, Jonathon, and David Mildenberg. "Ex-Merrill CEO Komansky Regrets

Backing Glass-Steagall's Repeal." Bloomburg 5 May 2010: Web. 19 Nov 2010. .

Federal Budget surplus by focusing on the three consecutive years of surplus budgets achieved by the Clinton Administration after nearly fifty years during the last three years towards the end of the second term of President Clinton and his administration from 1998 to 2000.
President made public the new White House budget figures that expect a surplus of $39 billion for the fiscal year 1998 and a $150 billion surplus over a period of five years. Clinton felt that the time had come to shut the deficit cluck and start the surplus clock. He also believed that the American economy currently was the envy of the world, yet this was not preordained nor was it guaranteed for the future. So, he wished to continue his strategy of strict fiscal discipline and investments into the future that has made this surplus budget possible He believed very strongly that the surplus should…...

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References

Burns, Robert. Clinton Announces Budget Surplus. September 30, 1998. Retrieved from   Accessed on 12/06/2004http://www.washingtonpost.com/wp-srv/politics/special/budget/stories/surplus093098b.htm 

Clinton Announces $39 Billion Projected Budget Surplus. Retrieved from   / Accessed on 12/06/2004http://www.cnn.com/ALLPOLITICS/1998/05/26/clinton.economy 

Fact Sheet: The Largest Budget Surplus in U.S. History. September 27, 1999. Retrieved from Accessed on 12/06/2004http://www.usembassy.it/file9909/alia/99092702.htm

Surplus Fever. The debate surrounding the anticipated budget surplus. February 19, 1998. Retrieved from   Accessed on 12/06/2004http://www.pbs.org/newshour/forum/february98/budget_2-19.html 

Macroeconomics
Budget deficits today will tend to lower the rate of growth in the economy in the future. Budget deficits result in higher rates of public debt. hile the U.S. borrows at very low rates, it nevertheless must pay interest on its debt, and it is that interest that represents a burden on future growth. hat happens is that future tax receipts must be used to pay interest and principle on debt created by today's deficits, instead of being invested back into the country in the future. Thus, while running a deficit may create positive economic growth today, it does work to constrain future growth, but placing constraints on the amount of future national income that can be dedicated to growth in the future.

The reasons for the budget deficit definitely matter. As with any spending, there is a difference between spending on things that will build revenue growth for the future…...

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Works Cited:

Auerbach, A. & Gale, W. (2009). Deficit: What caused it, why it matters. CNN Money. Retrieved May 24, 2012 from  http://money.cnn.com/2009/07/30/news/economy/federal_budget_deficit/index.htm 

FRED. (2012). Personal saving rate. Federal Reserve Bank of St. Louis. Retrieved May 24, 2012 from  http://research.stlouisfed.org/fred2/series/PSAVERT

Reduce the Budget Deficit
Statutory budget controls in effect from 1985 to 2002 were designed "to reduce the budget deficit" (Lynch, 2011, p. 1). The Balanced Budget and Emergency Deficit Control Act (1985) and the Budget Enforcement Act (1990) were primary drivers of deficit reduction mechanisms, which provided controls to cap Congressional spending and support to the legislative process with regard to reducing the deficit. The first of these Acts actually enabled Congress to increase the deficit but did so with the stipulation that "gradual reduction" be accomplished over the following six-year period (Lynch, 2011, p. 1). The deficit goals and time allowance were extended in 1987 via the Balanced Budget and Emergency Deficit Control Reaffirmation Act -- essentially a piece of legislation that enabled Congress to kick the can. The 1990 Budget Enforcement Act introduced a pay-as-you-go approach to reducing the deficit and caps on discretionary spending. The Act was…...

He states that changes international capital flows have been the primary consequence of increased deficits and likens this to direct competition between the U.S. Treasury and the U.S. exporting industry. He reasons that the flow of foreign funds into the Treasury prevents these funds from being available for foreign purchase of U.S. goods and services. Thus, the more our government borrows and finances with foreign funds, the more our export market will continue to deteriorate.
Frankel (2004) believes the twin deficits situation will bring about a hard landing that could materialize in any number of ways. If the U.S. is forced to start paying back foreign investors, growth will significantly slow and there is a danger of resurgence in protectionism. Frankel sees even more peril than Garrison's gloomy domestic implications. Frankel (2004) believes there will be a decline in the dollar that will result in a possible loss of United…...

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Bibliography

Cooper, R, 2005 (November). Living with global imbalances: A contrarian view. Policy Briefs in International Economics, no. PB05-3, Institute for International Economics.

Frankel, J. (2004). Twin deficits and twin decades. Federal Reserve Bank of Boston conference. In The Macroeconomics of Fiscal Policy, edited by Kopcke, R., Tootell, G. And Triest, R. Cambridge, MA: MIT Press, 2006), pp. 321-335.

Garrison, R.W., (2003, April). The trouble with deficit finance. The Free Market Vol 21, No 4.  http://mises.org/freemarket_detail.aspx?control=435 

The Economist: Danger time for America (2006, January 12).  http://neweconomist.blogs.com/new_economist/2006/01/economist_dange.html

4. One of the main issues with GDP is that it reflects economic activity rather than economic progress. Thus, Japan's efforts at rebuilding after the tsunami will appear as a boom in construction, when in fact the country has recorded a significant economic setback and the temporary boost in construction activity is simply going to get the country back to its previous level. The first thing that should be added to a new measure of GDP (or economic health) is an adjustment for negative economic activity. This can be a natural disaster, terrorist attack or other activity that detracts from a nation's economic growth but is not currently included in the GDP calculation.

The second issue is that the GDP per capita does not accurately reflect the wealth of a nation. Liechtensteiners do not live materially better than their Austrian and Swiss neighbors, but their per capita GDP says they do.…...

working life of a grade school teacher. The author shadowed a first grade teacher for a full work week and then recorded her observations and findings. The author also included what the experience taught her and how the experience will be used in the future. There were five sources used to complete this paper.
Before I shadowed a first grade teacher for 40 hours I had a preconceived idea about what teaching grade school would be like. I knew that grade school teachers were responsible for teaching children to read, starting them off on the path to arithmetic and opening the world of Geography to them. In addition I knew that they were the only teachers who provided spelling tests and spelling knowledge for their students. I realized all of these things because of my own experience as a grade school student, years ago. What I didn't realize, when looking…...

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References

Dyslexia and the life course.

Journal of Learning Disabilities; July 1, 2003; McNulty, Michael A.

The truth about child abuse and the truth about children.

The New Republic; March 15, 1999

Budget Crisis
How current budget crisis impact public Health & Community services individual states? 1) Colorado 2) South Carolina 3) New Hampshire 4) California 5) Arizona 6) Oklahoma 7) Virginia

How does the current budget crisis impact the public health & community services in the following individual states?

Colorado

Even before the current crisis, Colorado ranked "near the bottom when compared to other states for covering families and children for health care" (Anderson 2011). Now, because of recent budget cuts, healthcare services are likely to suffer further. For some healthcare centers, cuts will comprise up to 20% of their annual operating budgets. The need for services has increased, given that job losses mean that more people are reliant upon state assistance. "Demand is up as much as 40% by Medicaid patients and 23% by the uninsured" (Anderson 2011). Public clinics are closing or laying off staff and reducing hours because of $32.4 million in…...

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References

Anderson, Polly. (2011). The crisis: Field perspective Colorado. NACHC.

Retrieved: http://www.nachc.com/magazine-article.cfm?MagazineArticleID=149

Kaine's budget proposal: Cut mental health services, facilities. (2009). Hampton Roads.

Retrieved:  http://hamptonroads.com/2009/12/kaines-budget-proposal-cut-mental-health-services-facilities

S. debt.
Conclusion

Health care is a large part of the federal budget and it is increasing in importance. The rate of growth in health care outlays is greater than the rate of growth in the budget itself. The poses a problem, because the federal budget deficit is increasing in size. Debt service is going to be the most rapidly growing component of the federal budget over the next several years, highlighting the need to control costs in all aspects of the budget. The challenge, however, is that both demographic trends and health care cost inflation trends signal a dramatic increase in health care costs in the coming couple of decades. Health care reform is expected to help with cost containment, primarily through shifting some eligibility requirements, but greater solutions are required. Privatizing health care would take if off the government's books, but would have significant negative externalities with respect to public…...

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Works Cited:

Budget of the U.S. Government, fiscal year 2011. Retrieved December 9, 2010 from  http://www.whitehouse.gov/sites/default/files/omb/budget/fy2011/assets/budget.pdf 

CBO. (2010). HR 4872. Congressional Budget Office. Retrieved December 9, 2010 from  http://www.cbo.gov/ftpdocs/113xx/doc11355/hr4872.pdf 

Klein, E. (2010). Rep. Ryan proposes radical solution to budget problem. Washington Post. Retrieved December 9, 2010 from  http://www.washingtonpost.com/wp-dyn/content/article/2010/02/05/AR2010020504796.html

This type of policy is aimed at "stimulating total spending in the economy," through cutting taxes to leave businesses and individuals with more money to buy goods, thus raising demand and increasing production and generating increased spending (Microsoft® Encarta® Online Encyclopedia).
Importantly, the authors note that these budget imbalances will have a significant negative impact on the general economy. They will reduce living standards and damage the economy, and bring the nation to a "real risk of a fiscal crisis" (p. 5). In large part, these effects will come from reducing national saving.

The authors note, however, that all is not lost if action is taken immediately to reduce budget deficits. Gale and Orszag write, "Significant changes in fiscal policy are needed to deal preemptively with the costs from low national saving and the risk of a fiscal crisis. The sooner we begin, the better" (p. 6).

eferences

Gale William G. And Orszag,…...

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References

Gale William G. And Orszag, Peter R. 2004. The Budget Outlook: Projections and Implications. The Economists' Voice: Vol. 1: No. 2, Article 6, October 27, 2004. November 2004.  http://www.bepress.com/cgi/viewcontent.cgi?article=1004&context=ev 

Microsoft® Encarta® Online Encyclopedia. 2004. Fiscal Policy. © 1997-2004 Microsoft Corporation. All Rights Reserved. 04 November 2004. http://encarta.msn.com/encyclopedia_761579937/Fiscal_Policy.html

Budget Deficit
Government Budget

What are the consequences of an ever-burgeoning federal deficit and debt? Will there ever be a solution or compromise?

One of the most hotly-contested issues in contemporary American political life is how to deal with the current budget deficit. Despite running surpluses during the 1990s, the current budget is widely considered out of control by both Democrats and epublicans. The reasons for the deficit include two costly wars abroad and increased defense spending overall after 9/11; tax cuts, and the recent recession which required federal spending in the form of unemployment assistance and assistance to the states (who are legally required to balance their budgets); and less income tax revenue because of job losses. There also systemic factors that have contributed to high budget deficits (Amadeo 2012). Overall, "mandatory spending has increased. Spending to pay benefits for Social Security, Medicare and other mandated programs has been more than $2.3…...

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References

Amadeo, Kimberly. (2012). U.S. Federal Budget deficit. Retrieved at:

 http://useconomy.about.com/od/fiscalpolicy/p/deficit.htm 

Economic effects of a budget deficit. (2012). Economics Help. Retrieved at:

 http://www.economicshelp.org/macroeconomics/fiscal-policy/effects-budget-deficit.html

125% to 6.0% would increase the estimated revenues by approximately $300 million, bringing this revenue to its highest level in history. This rate would still be lower than the state sales tax rate in neighboring Southwest states such as Arizona (6.6%), Texas (6.25%), Nevada (6.85%) and California (7.25%) (Sales Tax Clearinghouse, 2010). ith this increase, personal income tax rates would not need to be increased. Corporate income tax rates would also remain the same, as they are not a significant component of general revenues. hile the move to increase the state sales tax would prove unpopular, it would allow New Mexico to build for a more stable budget future, less reliant on federal transfers, while remaining competitive in terms of corporate and personal income taxes.
Appropriations will also need to be cut in order to save money. The main problem with appropriations in the budget is that a looming and unexpected…...

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Works Cited:

Massey, B. (2010). NM revenues weaken, more state budget cuts loom. Business Week. Retrieved December 2, 2010 from  http://www.businessweek.com/ap/financialnews/D9H3JT6G1.htm 

McCaffrey, S. (2010). State budget shortfalls may reach $180 billion this year. Boston Globe. Retrieved December 2, 2010 from  http://www.boston.com/news/nation/articles/2010/01/04/state_budget_shortfalls_may_reach_180_billion_this_year/ 

McNichol, E.; Oliff, P. & Johnson, N. (2010). States continue to feel recession's impact. Center of Budget Policy Priorities. Retrieved December 2, 2010 from  http://www.cbpp.org/cms/?fa=view&id=711 

New Mexico 2011 Budget. Retrieved December 2, 2010 from http://budget.nmdfa.state.nm.us/cms/kunde/rts/budgetnmdfastatenmus/docs/284016296-01-05-2010-09-15-31.pdf

The departmental and program breakdown of the information in the city of Detroit's budget does not provide quite the same level of detail or of annual change that the city of Austin's budget does, but this more than made up for by the ease of accessing what details are available, and by the different formats of the two cities' budgets almost necessitate these differences in clarity, but they do not entirely account for the lack of clarity in the city of Austin's budget. That budget is already organized by department and broken down into the individual programs; tabulating the department totals and providing a clear overview of the major expenditure and revenue items on the budget would not have entailed any undue extra effort. The city of Detroit's budget clearly shows that both detail and overall clarity are entirely achievable in a municipal budget, making it both more effective…...

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References

Lee, R.; Johnson, R. And Joyce, P. (2008). Public budgeting systems. Sudbury, MA: Jones & Bartlett.

Stenberg, C. (2007). Managing local government services: a practical guide. Washington. D.C.: ICMA.

.. discretion as a practical matter" (1988, p. 78).
Wildavsky's was not critical of classical budgeting theory. He was more in favor of the concept of incrementalism that was a vital part of classical budgeting. He felt that incrementalism was superior to other budgeting approaches because it "increases agreement among the participants" (1984, p. 136) and also because it could reduce "burden of calculation" (1984, p. 136). Wildavsky went on to say that: "Clinging to last year's agreements is enormously economical of critical resources . . . which would be seriously depleted if all or most past agreements were reexamined yearly." (1984, p. 217).

The classical budgeting model proved efficient and practical for many decades but it lost its appeal in mid-20th century when a general trend towards excessive spending took over. This trend was observed all over the world and the main reason for the scope of government's responsibilities that had…...

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References

1. Caiden, Naomi. 1982. "The Myth of the Annual Budget." Public Administration Review 42 (6):516 -- 523.

2. Meyers, Roy T. 1997, Late Appropriations and Government shutdowns: Frequency causes, consensus and remedies. Public Budgeting and Finance. 25:38-45

3. Schick, Allen. 1980. Congress and Your Money. Washington: Urban Institute.

4. Schick, Allen. 1990. The Capacity to Budget. Washington: Urban Institute.

The reason for this shortfall, as noted by the Balance Budget website, emanates from pension costs, previously agreed to cost of living pay increases, rising health care costs overall and a general weakness in the overall economic recovery that has ensued, albeit very slowly, since the end of the so-called "Great ecession" period that ended in approximately 2009 for the nation as a whole. The balance budget website notes that the shortfall in question is equivalent to 20% of the total police officer salary budget, 60% of the total firefighter budget and over 100% of the city's expenses for their libraries and parks (L.A. Budget Challenge, 2013).

Los Angeles Mayor Antonio Villaraigosa, in this budget summary document, notes that budget shortfalls will be addressed through expenditure cuts and increase efficiency. He makes mention of "painful" layoffs but not addressing the real problem of employee-level costs per person being the issue will…...

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References

City of Los Angeles. (2012, October 29). The City of Los Angeles: LA City Controller: Adopted Budget. The City of Los Angeles: LA City Controller: Home. Retrieved April 16, 2013, from  http://controller.lacity.org/AdoptedBudget/index.htm 

City of Los Angeles. (2013, April 16). The Mayor of the City of Los Angeles. The City of Los Angeles: Office of Mayor: Home. Retrieved April 16, 2013, from  http://mayor.lacity.org/Issues/BalancedBudget/index.htm 

City of Los Angeles. (2013, April 16). The City of Los Angeles. The City of Los Angeles. Retrieved April 16, 2013, from  http://www.lacity.org/index.htm 

City of Los Angeles. (2013, April 16). The City of Los Angeles: City of Los Angeles Council Committees: Budget and Finance. The City of Los Angeles: City of Los Angeles Council Committees: Home. Retrieved April 16, 2013, from http://councilcommittee.lacity.org/budget/index.htm

The legalization of marijuana in certain states has had a significant impact on drug policy in the United States.

One major impact is that it has forced a reevaluation of drug laws and policies at the federal level. Marijuana remains illegal at the federal level, but the growing number of states legalizing it for medicinal and recreational use has created tension between state and federal laws. This has prompted discussions on the need for federal reform of drug laws and policies to address the inconsistencies between state and federal laws.

Additionally, the legalization of marijuana in certain states has led to....

The South African governments spending plays a significant role in influencing the countrys GDP in the future. Government spending is a component of GDP known as government consumption expenditure, which includes spending on salaries, goods, and services. If the South African government increases its spending on infrastructure development, social programs, and other areas that stimulate economic activity, it can have a positive impact on GDP growth. This is because government spending often leads to increased investment, job creation, and overall economic expansion. However, if the government overspends or misallocates resources, it can lead to budget deficits, inflation, and an unsustainable....

Introduction Government spending plays a crucial role in shaping a country's economic trajectory. It can stimulate economic growth, redistribute income, and provide essential public services. South Africa, like many other countries, faces the challenge of balancing its spending needs with the imperative of fiscal sustainability. This literature review examines the future projections of South African government spending relative to GDP and explores the potential impact on the country's economic outlook. Historical Trends and Current Situation Over the past two decades, South Africa's government spending has grown steadily, albeit with some fluctuations. As a percentage of GDP, government spending increased from 25.7% in....

One potential essay topic related to local government financial management comes from news that many local governments are facing budget deficits and financial struggles due to the COVID-19 pandemic. This situation presents an opportunity to explore the challenges that local governments face in managing their finances during times of crisis, the potential strategies they can employ to address budget shortfalls, and the implications of these financial struggles for the delivery of public services to residents. Additionally, this topic can also delve into how local governments can better prepare for future financial crises and strengthen their financial management practices in order....