Federal Budget Case Study

1. There are 6 largest budgets items in the U.S government, they are Medicare/Medicaid ($96 billions), Social Security ($88 billions), Defense/War ($58 billions), Income Security ($31 billions), Net Interest on debt ($24 billions), Federal Pensions ($25 billions). Each one has its own importance though the U.S government should cut back spending on few of the budget items. They conducted survey and got federal pension and defense/war should be cut back. In my point of view they should cut back in federal pension because the defense is mandatory for U.S citizens the government should protect citizens that is there responsibility, without defense we can’t protect from enemies foreign and domestic.

2. Missouri has better management than Illinois because of its lowest debt of $47 billion which is less than Illinois i.e. $164 billion. The lowest debt is due to low Population ($6 million), Gdp ($29 billion), unemployed (172044), Debt to Gdp ratio (16.1%), Revenue ($42 billion) and Debt per citizen ($7863) in Missouri State. In my point of view lowest debt/gdp ratio results better management and based on their finance between these two states, Missouri is

GDP is high for U.S compare to China, India, Germany, Japan because of its high levels of research, capital investments and moderate unemployment rate it crossed 17T in gdp but due to the federal debt, the economy is going to decrease in future. CBO estimates that federal debt held by public survey is currently 74% of gdp at the end of this year and 79% in next 10 years. But still in my point of view for the next 10 years US will be in leading position because china cannot be global growth and its gdp (10T), Germany is the world’s fourth-largest economic power but depends on exports and its gdp(3.9T). Japan has greater technology but it is economically less and its gdp(4.2T) and India’s gdp is 2T. So I predict, for the next 10 years US will be in top position due to high gdp, low debt compare to other