The budget deficits of the federal and state governments

Related BrainMass Solutions

• State government borrowing

  The direct cost of deficits (and the national debt) to the government is the interest it pays on them. Interest payments constitute a significant portion of the Federal budget.

• tax exemption and public vs private goods

  This is similar to the question "Does federal tax exemption of interest income from state and local government bonds encourage state and local government borrowing?".

• Macroeconomics

  261519 Macroeconomics: Federal Economics Earlier this year Congress passed a major fiscal package, which includes personal tax cuts and increases in transfer payments, incentives for business investment, federal grants for state and local governments

• Should the U.S. federal budget be balanced every year

  It really depends on the state of the economy at any given time. Sometimes the economy is in such a poor state that it is necessary for the federal government to go over budget and spend in areas in order to encourage additional economic activity.

• Rational Approaches and Incremental Approaches Budgeting

  A report by the National Association of State Budget Officers showed that the year 2010 proved the most challenging for state and local governments as states faced a budget deficit of $142.6 with projections showing that the state and local governments

• Access and analyze the Budget of the United States

  Surpluses are a result of past surplus balance or discretionary spending. Importance of Budget Surplus and Deficit Deficits increase the Federal debt and with it, Government's obligation to pay interest.

• Government spending, taxes, budget processes

  Higher budget deficits may lead policy makers to attempt a monetization of the debt, that is print more money. Higher money supply in turn will depreciate the value of the dollar, and drive up the price of imports for Walmart.

• Federal Budget Deficit

  143580 Federal Budget Deficit Taking business personally: Identify some policy change that you propose or oppose to reduce the federal government budget deficits and debt. Evaluate your position using the budget deficits and debt principle.

• Roles, expenditures, and revenue for the federal state

  All three levels of government have a financial committee who analyzes the budgets on a federal, local, and state budget.