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The role of fiscal and monetary policy
The role of fiscal and monetary policy
The role of fiscal and monetary policy
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1. A myriad of variables have contributed to an adversarial budgeting process between the President and Congress. Until such factors have been addressed, the budget process will remain a contentious procedure that generates inefficient fiscal policy Budgeting is considered a thermometer of presidential and Congressional relations. The framers of the Constitution expected Congress to have the largest say in the budgeting decisions. If the president proposes measures that Congress can accept, the legislators get to share the blame. If Congress rejects a presidential proposal so much, it replaces it with another, legislators can gain credit from the interest they protect. The presidential gain policy influences from initiative and agenda setting …show more content…
The first condition for cooperation was that Congress and the President have similar goals for the budget totals. Liberal Democrats and Conservative Republicans have very different fiscal policy views. Conservative coalitions agreed largely with Eisenhower in 1950s. Unfortunately, their disagreement only became systematic when President Nixon faced a more liberal Congress. At this point, the fact that only the President had economists and a projecting fiscal totals became a problem for Congress. The second condition was the instrument available within budget process be adequate to the task of making details fit the totals. The process that had emerged only guaranteed action on annually appropriate programs, this will later be called discretionary spending. The 1960s growth of entitlements reduced spending flexibility in the traditional spending process. The growth of entitlement such as Social Security and Medicare followed by military spending’s decline as the Vietnam war wound down, meant that by the 1973 annual appropriations were less than half, and a decline sharing of spending. The third condition was that the president and congressional majority be in rough agreement on programs details or priorities. This disagreement appeared to have widened during the Nixon presidency. The fourth condition was that the apportionment power be used in a way that was remotely acceptable to Congress. President Nixon used it to impound appropriation for purposes that he did not approve and had not been because another, culminational crisis over budget power was avoided only because another culminating in Nixon resignation took
Ronald Read ran a campaign based on lowering taxes, and strong national defense. In his first inaugural address, he emphasized the important to conserving the power of an us control our own destinies. He also says that government is not a solution to the problem that they are the problem. During his term, he decreases the size of federal government and supported policies and reforms that he believed empowered individuals. Reagan also worked to reduce federal spending on home programs, due to his concerns about the constitutionality of those programs. He called for finances cuts, mostly from great Society programs. while not touching Medicare and Social security, Reagan authorized cuts in federal schooling programs, food stamp programs, workplace programs, and other non-military domestic programs. Believing the U.S. had left out the military after the Vietnam war, and because the cold battle continued, Reagan asked for increased funds to reinforce the military. The decrease in taxes and growth in army spending ended in the biggest budget deficits in the united states’ records to that time. The deficits persisted each year, however Reagan vowed to veto any tax increases Congress
The United State’s Constitution, the shortest written Constitution in the world, only has twenty-seven amendments, and now it is time to add another. The power of a presidential line-item veto was denied to the Clinton Administration in 1998, but with this last Congress being the least productive Congress ever, it is time to re-think the power distribution in the legislative process. In Congress, on average, only 10% of the bills proposed make their way through, and ever reach the President’s desk. In this modern day and age a bill, on average, is 3,105 words. When Congress was first created the idea was that each proposed legislation would be contained in one bill, now bills are comprised of various provisions. Which is why the power of the line-item veto would be beneficial to expand presidential authority. This line-item veto authority is the ability to cross out certain provisions while still being able to sign in to law the entire bill. This would be beneficial to the United States government, as an amendment that would allow the president to cut out unnecessary spending to in turn lower the national deficit. The United States government needs to pass an amendment to allow Presidents to use the line item veto.
were inseparable from economic strength. However, Reagan's defense policy. resulted in the doubling of the debt of the United States. He used the money for... ... middle of paper ... ...
And can Congress and the President ever compromise on a budget today?
The division of power is one of the most often cited principles of our constitutional system. For example, in terms of foreign policy, the Senate must provide advice and consent to the president when making treaties and appointments. Conversely, the constitution grants Congress the authority to declare war and provide the military funding while the President acts as the commander in chief of the armed forces. This sharing of power creates friction between the executive and legislative branches when they are in disagreement and “is an invitation to struggle for the privilege of directing American foreign policy”.
The preamble of the United State’s constitution sets many goals for the country. These goals are to form a more perfect union, to establish justice, insure domestic tranquility, provide for the common defense , promote the general welfare, and to secure the blessings of liberty for ourselves, and our posterity (US Const). With all of these goals it begs the question are, parts of the United State’s government meeting these goals? One specific case with this relationship is the relationship between the federal budget, and the goals in the preamble. The federal budget is meeting the goals set out in the preamble of the constitution because the federal budget defends the country, promotes the welfare of America’s citizen, and establishes justice
In exploring the basis on which the U.S President is considered to hold dominant authority in regard to foreign policy making, and whether the Congress ought to hold a significant role in the foreign decision making process, it is imperative to take into account the executive powers vested on the U.S presidency. This paper posits that the Presidency should be considered to be dominant, while at other times the Congress should be considered to be the dominant authority. In this perspective, it is essential that the Congress plays an important role in the foreign policy making process, since the most important feature of the U.S system is the division of powers.
Throughout the years the U.S has had more budget deficits than it has had surpluses. This is due to the excess in spending and not enough revenues to pay for it. Many have debated over the U.S budget deficit problem. However to fix the problem one has to research the past to figure out how the U.S budget deficit got to where it is now. Hopefully by figuring out this, one could project what the U.S budget deficit will look like in years to come.
The most noticeable discretionary fiscal policy is the discretionary budget. These are the expenditures calculated in the United States budget that are within the appropriations bills. These are negotiated between Congress and the president each year. This includes almost all the spending in the federal department. For an example, during the Great Depression many unemployed people found jobs through the government. Cooley and Ohanian argued, “The economy did not tank in 1937 because government spending declined. Increases in tax rates, particularly capital income tax rates, and the expansion of unions, were most likely responsible. Unfortunately, these same factors pose a similar threat today.” Numbers had shown that spending declined from the years 1937 to 1938.
As seen quite often in the Obama administration, legislation gets stuck and lost in Congress due to the polarization of the parties in recent years. In Obama’s case, he has frequently threatened to go around the House and Senate if they could not reach an agreement or would shoot down his plans. Cato’s Pilon points out, however, that the hurdles of Congress are no mistake. Pilot states that the framer’s of the Constitution knew what they were doing, and this was intended to keep the checks and balances as well as accountability to the public (Lyons,
As president, it was too difficult for Johnson to please two issues, social or military. Since Johnson tried to stay neutral and attempting to make both of them work, the United States economy suffered because spending was clearly increased. “President Lyndon,” he said. B. Johnson’s decision to finance a major war and the Great Society simultaneously, without a significant increase in taxation, launched a runaway double digit inflation and mounting federal debt that ravaged the American economy and eroded living standards from the late 1960’s to into the 1990s”(Oxford Companion 766). It is impossible to avoid economic problems with major spending increases without some tax increases.
“The Budget and Economic Outlook : Fiscal Years 2010 to 2020.” Congress of the United States
Which decisions were most difficult to make? Which program cuts or tax increases were the most challenging? Why?
...n policy, especially in regards to the budget and treaties, the president remains the dominant power in decision-making with regards to foreign policymaking. This power is demonstrated by the authority that the president is given by the constitution and the way that is interpreted and how presidents have used their powers and challenged congress for more power. The power of congress has been asserted in many ways, and will continue to be as long as our nation remains. The balance between powers will also remain in fluctuation, due to events that change the course of history. I do believe Congress should have an important role in foreign policymaking because it is crucial to our system of checks and balances. If one branch maintains too much power, the work of our forefathers to create a system different from the parliamentary system in England would all be in vain.
Budgeting Assignment A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of a manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496)