Federal Debt and Entitlement Programs Term Paper by Nicky

A look at federal spending practices.
# 151109 | 1,300 words | 2 sources | APA | 2012 | US


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Description:

This paper examines federal spending practices as they relate to the debt and entitlement programs. The paper begins by presenting differing opinions about the role of fiscal policies and government. Then, it reviews two articles that deal with this topic by the same author, Randall Wray. The first article addresses taxation from the composition fallacy, an idea which states that just because one truth is valid for one element of the whole, it is not necessarily valid for the system itself. Wray's second article discusses the importance of entitlement programs. The paper concludes by stating that high tax rates discourage the population from working, which in turn means less money to the state budget and a reduced ability to offer entitlement programs.

Outline:

Fiscal Policy
The Condition of the Federal Debt
The Reformation of Entitlement Programs

From the Paper:

"In other words, Wray argues that the federal debt does not, in its essence, represent a problem, but a means for future development, improved living conditions, investments, jobs and so on. He bases his statement on a multitude of arguments. First, Wray argues the complexities of the macroeconomic system and the impossibility of extrapolating small scale rules to the principles which guide national and international affairs."
"The best means of exemplifying why personal savings cannot be extrapolated to generate national savings is offered by a random individual, Mary, as named by the author, who decides to eat one less hamburger per week in order to save some money. Considering that she is consistent with her agenda and that no other forces influence her action, such as an unexpected pay cut or an unforeseen expenditure, she will achieve her savings desiderate. However, if all people decide to eat one less hamburger, a national problem would arise. Consider McDonald's as the retailer of the hamburgers the population cuts. The decision will materialize in a reduced demand for the company's products. This will in turn mean that the fast food giant has to cut costs, which could easily translate into downsizing operations."

Sample of Sources Used:

  • Wray, L.R., 2009, Teaching the Fallacy of Composition: The Federal Budget Deficit, Economic Perspectives from Kansas City, http://neweconomicperspectives.blogspot.com/2009/08/teaching-fallacy-of-composition-federal.html last accessed on October 21, 2009
  • Wray, L.R., 2009, Social Security: Truth or Useful Fictions? Economic Perspectives from Kansas, http://neweconomicperspectives.blogspot.com/2009/08/social-security-truth-or-useful.html last accessed on October 21, 2009

Cite this Term Paper:

APA Format

Federal Debt and Entitlement Programs (2012, May 22) Retrieved November 22, 2019, from https://www.academon.com/term-paper/federal-debt-and-entitlement-programs-151109/

MLA Format

"Federal Debt and Entitlement Programs" 22 May 2012. Web. 22 November. 2019. <https://www.academon.com/term-paper/federal-debt-and-entitlement-programs-151109/>

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