US Fiscal Policy

US Fiscal Policy

Introduction

There are several factors that determine the US's debt, surplus, and deficit, and these in turn have an effect on Medicare users, future social security, and tax payers. When Clinton was in power, the US was facing a budget surplus for the first time since the past 15 to 30 years. During these years the government faced a major issue in keeping the surplus and spending in balance and it took around 10 to 20 years to get out of the state of deficit. After getting out from a deficit state, it has risen to around $7 trillion and continues to rise.

Discussion

After getting the country on the right track on the basis of international trade and exchange, and implementing programs in order to elevate the economy, Clinton decided that he would use the remaining funds to get rid of the national debt. He wanted to use the money to fulfill the needs of the American people by delegating the Treasury bonds so that taxpayers would benefit the most. This surplus also meant an increase in the funds provided to medical facilities in order to improve the overall health of the nation.

However, recently, the number of baby boomers applying for benefits has made the surplus look small and hence a situation as arisen where the budget seems to be in a deficit although there is no risk of debt burden. Since the past three decades the amount of taxes collected from the citizens has been more than what the government paid to disabled people, retirees, children, and spouses. These surpluses helped keep the budget deficit under control. Those days no longer exist. Since the past 3 years, the government has been paying more in benefits compared to the taxes it collects. Due to this, the congress is in ...