The federal budget is an issue at the forefront of American politics. Within the past few years, the budget has been in constant debate, due to the problems surrounding the recent budget crisis. The federal budget, made up of mandatory and discretionary spending, has different roles for each category. The two categories are made up of many major programs including Social Security, Medicare, and Department of Defense spending, but there are also many political debates over the two categories about what is necessary and what should be cut. Another relevant issue is the sequester, which suggested cuts to both categories if Congress was not willing to compromise. Even if Congress will not compromise, there may still be other solutions for budget problems facing the federal government.
First off, the federal budget and deficit are made up of two categories: mandatory and discretionary spending. There are two categories because they have different roles. Mandatory spending is made up of large insurance programs such as Social Security and other subsidies. The main role of mandatory spending is to provide entitlement programs. These are programs that help those that are in need of assistance, such as low-income families, the disabled, the elderly, or struggling farmers. Any person who requests assistance, applies, and if eligible may automatically receive the benefits as provided. Mandatory spending accounts for about 64% of the budget. On the other hand is discretionary spending. Discretionary spending is the part of the federal budget that Congress can alter without changing any major laws. It is requested by the president and then assigned by Congress. Congress sets specific annual budgets. Discretionary spending goes toward assista...
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...c and economic ideals over higher military spending. This could ensure friendly relations, so that maintaining excessive force is not necessary, even as a precaution. Clearly, there are many solutions to the federal budget problem.
Ultimately, the federal budget is something that will continue to be subject to much debate. Even with the differences in mandatory and discretionary spending, and both being comprised of different programs such as Social Security and the Department of Defense, there will still be many debates over what should receive cuts and what should not. When Congress cannot make a compromise, there is the sequester, which will lead to across the board budget cuts. However, there are several solutions to the budget crisis. Overall, the federal budget is a complex system, difficult to compromise, and will be the recipient of much political debate.
Our Preamble lists five main goals that are required to help create a strong and stable society within our country. However, money is required in order to achieve these goals. We get this money from the Federal Budget which is the yearly amount we receive in order to better our country. The question here is, are we slicing the pie correctly in relation to the federal budget? In each of three budget clusters, the U.S Government should make adjustments in the way it is distributing money by making changes involving the Big Five, the Middle Five, and the Little Guys.
Without understanding the importance of foreign relations the American people’s way of life could be at stake. Not only could the economic strength of the U.S. diminish, but the military might of the U.S. could also be compromised. Mead argues that without the centrality of foreign policy being evident in American politics the happiness of the world is at risk. “Since the United States has become the central power in a worldwide system of finance, communications, and trade, it is not only the American people whose happiness and security will be greatly affected by the quality of American foreign policy in coming years (Mead 176). I contend that without a strong emphasis on foreign policy, we could begin to see the end of American
Despite his many compromises however, Thomas Jefferson’s intent to dissolve the national debt was to a great extent unvarying. Jefferson and his Treasury Secretary Albert Gallatin honestly feared a large federal deficit as a threat to Republicanism. To avoid this threat, the President sought to diminish the role of the federal government, and decreased the national budget. These budget cuts substantially diminished the size and resources of the American army and navy. When criticized, Jefferson defended these military cuts as being consistent with Republican policies in that a smaller U.S. Army would be seen as less of a threat to other nations and reduce the risk of provocation, resulting in the ultimate promotion of peace.
The 2011-12 budget will have a strong impact on a variety of issues, including economic growth, employment, inflation, external balance, ecologically sustainable development, and equitable distribution of income. The fiscal decisions taken in this budget could potentially impact the other main weapons of economic management, such as monetary policy, which will be discussed later.
The country needs to start monitoring how the government is spending the federal budget and they need to start splitting it fairly to benefit our country. 83% of the federal budget is spent on the Big Five which are the main expenses in the budget. We have to stop spending it all on the Big Five. Our government should really pay attention to what we need most of in this country and focus on the needs. The government needs to take away 20% of the Big Five and split it to categories that need it.
For government budgeting to be effective, the process that guides it must be an evolving one. As the government gets bigger, it will most likely destabilize the existing method. Therefore, it must change to keep pace with the demands and growth of the country. The process must be capable of handling the complexity of our nation and its multifaceted needs so it will always need revisions and restructuring to face these new challenges. Its ultimate goal must be to reinforce the government and strengthen the country.
And can Congress and the President ever compromise on a budget today?
The federal budget begins with a proposed budget from the president then it passes through development of Legislation (senate and house budget committees) from that stage the House of Representatives take the lead in the budget process by analyzing the bill’s revenues. Then the federal budget passes on through 3 stages. First, congress provides some sort of guidelines for taxation and spending through programs. Second, these programs are either passed through with changes like modifications, establishments, and or extensions that are to be addressed before any appropriate program can be used. Third, generally the budget amount runs a little less than what originally proposed but with that third step it now becomes much more automatic in processing the development of the federal budget legislation. When it comes to the Health policy the relationship between the two is that funding and appropriate programs cannot be proposed or drafted without the federals budget process. Having Committees have health policy jurisdiction let say committed to bring forth and process is a plus in bringing potential programs to help hold and contribute to health 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
United States federal budget. Social Security is the largest entitlement program in the United States. In 2013, the total Social Security expenditures were $1.3 trillion, 8.4% of the $16.3 trillion GNP (SSA.gov). There has been an issue in the White House of either opposing the cut in Social Security spending or advocating for a hike in payments. Expanding Social Security instead of reducing it would benefit seniors, especially considering America’s struggling middle class and that there are more impoverished people than ever before.
Many United States' citizens are unaware of the country's current financial state. Many assume that one of the world's wealthiest countries could never be in debt. This is untrue however, and, in fact, the country with the greatest income per capita is in major debt. This study will examine possible solutions to reducing the United States' national budget deficit.
Deficit spending happens when a government grows its debt, meaning that its spending is greater than its income. Deficit Spending, 2008 Deficit spending is a fiscal policy, that when used appropriately can do some amazing things, like pull the United States up from its bootstraps effectively ending The Great Depression. President Hoover increased government spending by 50% and used the money to fund public works and infrastructure projects from 1928 to 1932. (Deficit Spending, 2008)
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.
Lall, Betty G., and John Tepper. Marlin. Building a Peace Economy: Opportunities and Problems of Post-cold War Defense Cuts. Boulder: Westview, 1992. Print.
Line item budgeting categorizes various expenses and places them in list format on a document for budgetary purposes. This type of budgeting is considered the heartbeat of budgeting due to the systematic method by which it controls revenue and expenses, this is made evident when Tyer and Willand (1992), pointed out “Statutory or administrative controls could be imposed on the transfer of funds from one-line item to another, or between broad categories of expenditure.” According to Schick (1971), “line item budgets were attractive to legislative officials because they did not focus explicit attention on substantive policy issues or choices.”