Download or read book The Economics of the Federal Budget Surplus written by and published by . This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fiscal 1998 marked the first year that total receipts exceeded outlays in the federal budget since 1969. Since then, the budget has been in surplus and official projections expect the budget to remain in surplus for the foreseeable future. Congressional Budget Office (CBO) baseline projections indicate that the budget surpluses are expected to grow steadily over the next 10 years. Over fairly short periods of time, say three or four years, fiscal policy can affect the rate of economic growth by adding to, or subtracting from, aggregate demand. For a time, the effect on the economy may even be larger than the initial change in the budget. These effects, however, tend eventually to diminish because of either higher interest rates or rising prices. Estimates of the multiplier effect on the economy of a change in fiscal policy vary, but most of them suggest that it reaches a peak somewhere between one and one-and-a-half times size of the change in the budget. In most economic models, that peak effect is realized within one or two years of the initial change in policy. One measure economists use to assess fiscal policy is the structural, or standardized-employment, budget. This measure estimates, at a given time, what outlays, receipts and the surplus would be if the economy were at full employment. Although the actual budget has been in surplus since 1998, the standardized measure first registered a balanced budget in 1999. Between 1992 and 2000, the actual budget surplus increased from -4.7% to 2.4% of gross domestic product (GDP), a shift of 7.1 percentage points. Over the same period the standardized measure rose from -2.9% to 1.1% of GDP. That suggests that a little more than half of the shift was the result of changes in policy, and a little less than half was attributable to the economic expansion. In the long run, economic growth is determined primarily by three factors; growth in the labor force, the rate of technological advance, and the amount of capital available to the workforce. Of the three, the last one may be the most susceptible to the influence of policymakers. The larger the capital stock is, the more productive the labor force tends to be. While it is possible for fiscal policy to have an effect on the rate of technological progress in the way public money is spent, it probably has a much larger effect on growth through its influence on the size of the domestic stock of capital and the amount of capital available for each worker in the labor force. In 1996, the public sector contribution to national saving was small. By 2000, public sector saving had risen to 5.3% of GDP. Over the same period, private sector saving fell from 16.5% of GDP to 13.0%. Net inflows of foreign capital rose from 1.4% to 4.3% of GDP. Total funds available for investment in the U.S. from all sources rose from 18.7% to 22.6% of GDP.

Download or read book The Economics of the Federal Budget Deficit written by and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Congressional Budget Office (CBO) estimates that the federal budget deficit for FY2006 was $247.6 billion, a decline from the $318.3 billion deficit recorded in FY2005. The CBO baseline deficit projection for FY2007 is $172 billion. Over fairly short periods of time, say three or four years, fiscal policy can affect the rate of economic growth by adding to, or subtracting from, aggregate demand. For a time, the effect on the economy may even be larger than the initial change in the budget. These effects, however, tend eventually to diminish because of either higher interest rates or rising prices. Estimates of the multiplier effect on the economy of a change in fiscal policy vary, but most of them suggest that it reaches a peak somewhere between one and one-and-a-half times size of the change in the budget. In most economic models, that peak effect is realized within one or two years of the initial change in policy. One measure economists use to assess fiscal policy is the structural, or standardized-employment, budget. This measure estimates, at a given time, what outlays, receipts, and the surplus or deficit would be if the economy were at full employment. Although the actual budget was in surplus beginning in 1998, the standardized measure first registered a balanced budget in 1999. Between 1992 and 2000, the actual budget surplus increased from -4.7% (a deficit of 4.7%) to 2.4% of gross domestic product (GDP), a shift of 7.1 percentage points. During the same period, the standardized measure rose from -2.9% to 1.1% of GDP. That suggests that a little more than half of the shift was the result of changes in policy, and a little less than half was attributable to the economic expansion. Between 2000 and 2006, the actual surplus fell from 2.4% to -1.9% of GDP, whereas the standardized measure fell from 1.1% to -2.2% of GDP.

Download or read book The Federal Budget written by Allen Schick and published by Brookings Institution Press. This book was released on 2008-05-31 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt: The federal budget impacts American policies both at home and abroad, and recent concern over the exploding budgetary deficit has experts calling our nation's policies "unsustainable" and "system-dooming." As the deficit continues to grow, will America be fully able to fund its priorities, such as an effective military and looking after its aging population? In this third edition of his classic book The Federal Budget, Allen Schick examines how surpluses projected during the final years of the Clinton presidency turned into oversized deficits under George W. Bush. In his detailed analysis of the politics and practices surrounding the federal budget, Schick addresses issues such as the collapse of the congressional budgetary process and the threat posed by the termination of discretionary spending caps. This edition updates and expands his assessment of the long-term budgetary outlook, and it concludes with a look at how the nation's deficit will affect America now and in the future. "A clear explanation of the federal budget... [Allen Schick] has captured the politics of federal budgeting from the original lofty goals to the stark realities of today."—Pete V. Domenici, U.S. Senate

Download or read book The Alleged Budget Surplus Social Security Voodoo Economics written by Allen William Smith and published by Ironwood Publications (FL). This book was released on 2000 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book deals with the budget-surplus myth, the Social Security Trust Fund, and voodoo economics (economic malpractice) over the past 20 years. It exposes the deliberate deception of the public by politicians from both parties that has led to the erroneous belief that the government has surplus money that is available for financing a large tax cut or new government programs. The book points out that there is no significant non-Social Security surplus today and that the projected surpluses for the next decade are little more than wishful thinking based on unrealistic economic assumptions. The book includes a detailed history of the economic policies and economic malpractice of the past two decades and analyzes the economic proposals of presidential candidates Al Gore and George W. Bush.

Download or read book The Economics of the Federal Budget Surplus written by Brian W Cashell and published by . This book was released on 2001 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Fiscal 1998 marked the first year that total receipts exceeded outlays in the federal budget since 1969. Since then, the budget has been in surplus and official projections expect the budget to remain in surplus for the foreseeable future. Congressional Budget Office (CBO) baseline projections indicate that the budget surpluses are expected to grow steadily over the next 10 years.

Download or read book The Economics of the Federal Budget Deficit written by and published by . This book was released on 2007 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Congressional Budget Office (CBO) estimates that the federal budget deficit for FY2006 was $247.6 billion, a decline from the $318.3 billion deficit recorded in FY2005. The CBO baseline deficit projection for FY2007 is $172 billion. Over fairly short periods of time, say three or four years, fiscal policy can affect the rate of economic growth by adding to, or subtracting from, aggregate demand. For a time, the effect on the economy may even be larger than the initial change in the budget. These effects, however, tend eventually to diminish because of either higher interest rates or rising prices. Estimates of the multiplier effect on the economy of a change in fiscal policy vary, but most of them suggest that it reaches a peak somewhere between one and one-and-a-half times size of the change in the budget. In most economic models, that peak effect is realized within one or two years of the initial change in policy. One measure economists use to assess fiscal policy is the structural, or standardized-employment, budget. This measure estimates, at a given time, what outlays, receipts, and the surplus or deficit would be if the economy were at full employment. Although the actual budget was in surplus beginning in 1998, the standardized measure first registered a balanced budget in 1999. Between 1992 and 2000, the actual budget surplus increased from -4.7% (a deficit of 4.7%) to 2.4% of gross domestic product (GDP), a shift of 7.1 percentage points. During the same period, the standardized measure rose from -2.9% to 1.1% of GDP. That suggests that a little more than half of the shift was the result of changes in policy, and a little less than half was attributable to the economic expansion. Between 2000 and 2006, the actual surplus fell from 2.4% to -1.9% of GDP, whereas the standardized measure fell from 1.1% to -2.2% of GDP.

Download or read book Federal Budget Deficits written by Richard J. Cebula and published by Free Press. This book was released on 1987 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Nation in Debt written by Richard H. Fink and published by . This book was released on 1987 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Budget Deficit and the National Debt written by Kenneth W. Thompson and published by . This book was released on 1997 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Budget Deficit and National Debt analyzes and attempts to better understand the problems associated with the debt and deficit. The theme of this book parallels the Miller Center's primary focus on governance and the presidency. The president is a key actor in submitting, approving, and administrating the budget. Therefore, the study of debt and deficit is in keeping with the Miller Center's focus on governance and the presidency. The book is divided into four sections. The first section discusses the debt and deficit from a variety of political perspectives and ideological approaches. Three contributors, representing different schools of thought and professional backgrounds, provide separate frameworks for considering the budget and deficit. The first section contrasts liberal, conservative, and independent views and compares the effects of the deficit on federal and local governments. The second section provides an overview of the origins and growth of the deficit and its effect on the U.S. economy. The authors outline interaction among and competition between economic and political forces operating in the United States, and they debate the merits of deficit reduction proposals. The third section examines the economic and political ramifications of the deficit, reviewing tactical and strategic errors and their consequences. The book concludes with a discussion of the political struggle over controlling the deficit and chronicles the ambitions and rivalries of two key political figures--Bill Clinton and Newt Gingrich. Their dispute over the seven year balanced-budget plan had significant influence on the policies of debt and deficit.

Download or read book Governing the 5 Trillion Economy written by Herbert Stein and published by Oxford University Press, USA. This book was released on 1989 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is an enormous concern today about the Federal budget, and almost all of it begins and ends with the deficit as the problem. But as eminent economist Herbert Stein argues in Governing the $5 Trillion Economy, the solutions most often proposed are escapist. Freezes, across-the-board cuts, or constitutional amendents all fail to take into account the real needs of the nation and, worse yet, focus too narrowly on the Federal budget. Stein contends that it is not enough for the government to manage only the Federal budget. The government, in cooperation with private planners, must begin to manage the whole output of the nation, which currently runs at almost five trillion dollars. It is only when planners can make choices between allocating resources either from the public sector (the Federal budget) or the private sector (industry or individuals), Stein says, that those decisions that benefit the nation as a whole will be made. For instance, health care planners should be able to choose between appropriating Federal money for Medicare and mandating company-paid employee health care plans. This would allow the government to reduce expenditures while still meeting its goal of better health for all citizens. Governing the $5 Trillion Economy is not a partisan argument for a specific set of economic policies, but an insightful prescription for improving the policy process no matter what the aims of the government. Written by one of America's leading authorities on national economic policy, this trenchant volume will be required reading for planners in government and the private sector as well as anyone interested in the future of the American economy.

Download or read book Balanced Budgets and American Politics written by James Savage and published by Cornell University Press. This book was released on 2019-05-15 with total page 369 pages. Available in PDF, EPUB and Kindle. Book excerpt: A topical issue but hardly a new one, the concern for balancing the federal budget has been a perennial source of conflict in American political life. In Balanced Budgets and American Politics, James Savage explores the causes and development of the nation's preoccupation with this issue. Savage argues that the American fascination with the idea of balancing the federal budget is deeply rooted and reflects more than a contemporary concern about interest rates, inflation, or even the outcome of recent budget battles. His analysis demonstrates the considerable influence that the principle budget balancing has had on politics and public policy from 1690 through Ronald Reagan's first term as president.

Download or read book How Real is the Federal Deficit written by Robert Eisner and published by Simon and Schuster. This book was released on 2010-05-11 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: Eisner argues that the federal deficit as currently measured is inaccurate and misleading. When inflation is properly accounted for, he points out, a dramatically different picture of the deficit occurs. In light of these new deficit figures, Eisner challenges current eco nomic theory and interpretations of our recent past. He finds that the deficit has not been as large as recently measured and that efforts to reduce the deficit may do more harm than good. This book will spark serious debate among economists and policymakers. The clarity of its arguments and strength of its evidence are convincing. Strongly recommended for academic and large public libraries. Richard C. Schim ing, Economics Dept., Mankato State Univ., Minn. Copyright 1986 Reed Business Information, Inc.

Download or read book The Economic Consequences of Government Deficits written by L.H. Meyer and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 243 pages. Available in PDF, EPUB and Kindle. Book excerpt: On October 29 and 30, 1982, the Center for the Study of American Business and the Institute for Banking and Financial Markets at Washington "The Economic Consequences of University cosponsored a conference on Government Deficits. " This was the sixth annual Economic Policy Con ference sponsored by the Center, and the first it has cosponsored with the Institute. This book contains the papers and comments delivered at that conference. Recent and prospective large federal deficits have prompted a thorough reconsideration of the political sources and economic consequences of government deficits. The papers in Part I focus on the implications of deficits for monetary growth and inflation, and the papers in Part II consider the effect of deficits on interest rates and capital formation. The papers in Part III deal with the political sources and remedies for the explosive growth in government spending and increased reliance on deficits. The papers in Part I by Alan S. Blinder, Professor of Economics at Princeton University, and Preston J. Miller, Assistant Vice President and Research Advisor at the Federal Reserve Bank of Minneapolis, discuss the relation between monetary growth and deficits and present evidence on the of deficits on inflation and output. A deficit is said to be monetized effects vii viii THE ECONOMIC CONSEQUENCES OF GOVERNMENT DEFICITS when the Federal Reserve purchases bonds to aid the Treasury in financing the deficit.

Download or read book Reconstructing the Federal Budget written by Albert T. Sommers and published by Greenwood. This book was released on 1984 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Deficit Myth written by Stephanie Kelton and published by PublicAffairs. This book was released on 2020-06-09 with total page 311 pages. Available in PDF, EPUB and Kindle. Book excerpt: A New York Times Bestseller The leading thinker and most visible public advocate of modern monetary theory -- the freshest and most important idea about economics in decades -- delivers a radically different, bold, new understanding for how to build a just and prosperous society. Stephanie Kelton's brilliant exploration of modern monetary theory (MMT) dramatically changes our understanding of how we can best deal with crucial issues ranging from poverty and inequality to creating jobs, expanding health care coverage, climate change, and building resilient infrastructure. Any ambitious proposal, however, inevitably runs into the buzz saw of how to find the money to pay for it, rooted in myths about deficits that are hobbling us as a country. Kelton busts through the myths that prevent us from taking action: that the federal government should budget like a household, that deficits will harm the next generation, crowd out private investment, and undermine long-term growth, and that entitlements are propelling us toward a grave fiscal crisis. MMT, as Kelton shows, shifts the terrain from narrow budgetary questions to one of broader economic and social benefits. With its important new ways of understanding money, taxes, and the critical role of deficit spending, MMT redefines how to responsibly use our resources so that we can maximize our potential as a society. MMT gives us the power to imagine a new politics and a new economy and move from a narrative of scarcity to one of opportunity.

Download or read book The Economics of the Federal Budget Deficit written by and published by . This book was released on 2010 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Congressional Budget Office (CBO) estimates that the federal budget deficit for FY2009 was $1,414 billion, triple the $459 billion deficit recorded in FY2008. The CBO expects the deficit for FY2010 to be $1,349 billion. The estimate for 2010 is based on current law. The budget deficit in FY2009 was, in dollar terms, unprecedented. Compared to the overall economy, the $1.4 trillion budget deficit equaled 9.9% of gross domestic product (GDP). In 1943, the budget deficit reached 30.3% of GDP. Since 1946 and before now, the largest the budget deficit had been, relative to the overall economy, was 6% of GDP in 1983. Over fairly short periods of time, say three or four years, fiscal policy can affect the rate of economic growth by adding to, or subtracting from, aggregate demand. For a time, the effect on the economy may even be larger than the initial change in the budget. These effects, however, tend eventually to diminish because of either higher interest rates or rising prices. There are varying estimates of the total effect on the economy of a change in fiscal policy, but most of them suggest that it reaches a peak somewhere between one and one-and-a-half times the size of the change in the budget. Most macroeconomists believe that effect is realized within one or two years of the initial change in policy.

Download or read book The Great Deficit Scares written by Robert Eisner and published by . This book was released on 1997 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: American politics often seems to be focused on three deficits, real and potential: the federal budget, the Social Security Trust Fund, and the trade balance. Robert Eisner, past president of the American Economic Association, explains why this is an unhealthy situation as well as a source of much misunderstanding. He argues that simply looking at the raw numbers creates misimpressions about the country's real economic situation, as well as provoking potentially damaging ideas for "remedies." Eisner points out that Social Security Trust Fund deficits can be "fixed" by simple changes in accounting procedures or funding requirements. And America's trade deficit will not bankrupt the country--servicing America's foreign obligations will take only a tiny share of its national wealth. As with any other loan, Eisner reminds us, it is what deficits are spent on that counts: tax cuts or investments in education, research, or the nation's capital stock. Eisner maintains that the economic dragons the American nation should be attempting to slay do not entail mythically measured budget or current account deficits. The real economic troubles that America faces are those of poverty, income inequality, and a failure to invest in human capital and public infrastructure.