Week 6 Altercation 1: Presidential Advisor
Read/review the afterward assets for this activity:
Textbook: Review Chapter 2, 3 (pp. 56-59), 13
Additional bookish sources you analyze through your own research
Magstadt, T. (2017). Understanding Politics: Ideas, institutions, and issues (12th ed.). Boston, MA: Cengage.
You are an adviser to the Admiral tasked with acid at atomic $300 billion from the budget. The admiral wants your recommendations to cut lines, not ample categories. Explain why you chose those cuts.
Note: THESE ARE NOT TRUE US BUDGET NUMBERS!.
DOMESTIC PROGRAMS AND FOREIGN AID
Cut some adopted aid to African countries
Eliminate acreage subsidies
Cut pay of noncombatant federal workers by 5 percent
Reduce the all-embracing federal workforce by 10%
Cut aid to states by 5%
Cut the cardinal of nuclear warheads, and end the "Star Wars" missile aegis program
Reduce aggressive to pre-Iraq War admeasurement and added abate troops in Asia and Europe
Cancel or adjournment some weapons programs
Enact medical abuse ameliorate by abbreviation the affairs of ample abuse verdicts
$ 8 billion
Increase the Medicare accommodation age to 68
$ 8 billion
Raise the Amusing Security retirement age to 68.
$ 13 billion
Return the acreage tax to Clinton-era levels, casual on an acreage account added than $1 actor to their brood would accept portions of those estates taxed.
$ 50 billion
End tax cuts for assets aloft $250,000 a year
$ 54 billion
End tax cuts for assets beneath $250,000 a year
$ 172 billion
Payroll tax access for bodies authoritative over $106,000 annually accidental added to Amusing Security and Medicare.
$ 50 billion
Institute a Millionaire's tax on assets aloft $1 million
$ 50 billion
Add a civic 5% sales tax
$ 41 billion
Add a tax on carbon emissions
$ 40 billion
Tax banks based on their sizes and the bulk of accident they take.
$ 73 billion
Total gap covered by your account plan
Use affirmation (cite sources) to abutment your acknowledgment from assigned readings or online lessons, and at TWO alfresco bookish source.
Summary for altercation post:
Imagine that you’re a baronial adviser to the Admiral of the United States (If it helps anticipate of a all-encompassing president, not the absolute actuality in the White House), and you’re tasked with acid at atomic $300 billion from the budget.
The admiral wants your recommendations to cut lines, not ample categories. Explain why you chose those cuts.
Be abiding to account the options you chose with their totals and your all-embracing absolute as well. Reaching $300 Billion is tough, so I appetite you to get your absolute about amid $290 - 310 Billion.
As you start, this academic account has a arrears (or gap) of $300 Billion. You can composition the aberration with $300 Billion in account cuts, OR $300 Billion in tax increases, OR article that uses both cuts and taxes.
So, let’s say you adjudge to use the aboriginal two options apparent in the Assessment:
Cut some adopted aid African countries $17 billion
Eliminate acreage subsidies $14 billion
You aloof alone $31 Billion from the gap. And the gap is now $269 Billion!
Unfortunately, you aloof affronted U.S. adopted allies and farmers.
So you accession taxes:
End Bush tax cuts for assets aloft $250,000 a year $54 billion
Now the gap is $215 Billion -- and you aloof agitated advantageous tax payers -- abounding of whom are now agitated and won’t be accidental against your boss’ Presidential campaign; authoritative it harder for you -- and your bang-up -- to accumulate your jobs. Ah the joys of government budgeting! ????
This anniversary we will analyze the economy, including the appulse that governments accept aloft bread-and-butter affairs and the bulk of abundance programs.
The US Budget
In February of anniversary year, the Admiral submits about a $3.8 abundance account angle to Congress for approval. This angle is based on the President's priorities, and what he believes will canyon in the Congress. Once the plan is fabricated public, absorption groups, citizens, scholars, political scientists, and pundits activate to analyze it to see what spending will go where.
The American bread-and-butter arrangement is actual complicated. It is advised a laissez-faire economy, but this does not beggarly that it operates in an absolutely chargeless market. There are rules and regulations in abode to assure the market, and the businesses and bodies alive aural it. Some of these safeguards developed during a aeon accepted as the New Deal, beneath Admiral Franklin D. Roosevelt, as a agency of abbreviation the appulse of the Abundant Depression. These protections are referred to as the amusing assurance net or abundance programs.
Welfare is a appellation activated to amusing programs that accord to the all-embracing abundance of the citizens, and these types of programs usually advance back there is a abundant charge aural the populace. For example, during The Abundant Depression, aggrandizement ante fabricated the dollar lose its antecedent value. The Abundant Depression resulted in the adversity of a ample allocation of the citizenry because abounding could not pay their bills, or buy aliment such as aliment which was in abbreviate accumulation to actuality with. Eventually, abstruse advances, spurred by the Industrial Revolution, fabricated the agriculture action beneath difficult, acceptance for beyond and beyond amounts of crops to be produced. Although this produced added aliment for a while, it additionally alone the bulk of food, accustomed the axiological law of accumulation and demand. If the accumulation of a artefact rises aloft the appeal for the product, prices will fall.
Supply and Demand
With the abatement in crop prices, farmers who had mortgaged their homes and acreage to acquiesce new agriculture accessories absent it all because they could no best acquire abundant to pay off their loans. Also, the new technology contributed to overfarming abundant of the land, which bare bare nutrients from the soil, authoritative it unfarmable for some time, developing The Dust Bowl. With the high band of clay missing from abundant of the farmland in the Midwest, the ample bulk of dust acquired abundant dust storms as astringent as blizzards. Aliment assembly suffered because of bound farmland, causing accumulation to decrease, adopting the bulk of aliment again. However, accustomed the accompaniment of aggrandizement during this time, the boilerplate actuality could not accumulate up with these costs banishment the government to footfall in to accommodate for the bodies and antithesis prices.
Although abundance programs serve purposes, they are not free. The botheration of advantageous for them avalanche on every nation that offers them, which is why there is consistently abundant application apropos these programs. The United States offers far beneath amusing programs than its European allies—based aloft its laissez-faire approach—and yet there is consistently abundant altercation about their existence. American conservatives tend to abutment a abridgement in the allotment of such programs, admitting liberals usually altercate for an access in their funding.
From the US account to negotiating with China on tariffs, it is no agnosticism economics is essential. Economics has become alike added analytical as our association has globalized, authoritative the apple smaller. It is harder to acquisition specific articles with the "Made in the USA" characterization as businesses are outsourcing abounding accomplishment jobs to alternative nations to accommodate lower prices. The US, the alone superpower, continues to be allotment of the all-around political economy.
The All-around Political Economy
The paths that booty nations to commercialism are rarely straight, and never identical. The aforementioned can be said for those societies opting to embrace a bazaar economy. The best acknowledged bread-and-butter arrangement currently is capitalism, but commercialism has acquired and continues to abound abnormally in assorted countries about the world. Political scientists admeasurement these changes alongside the systems' roots in, and access on, the political world.
For bisected of the aftermost century, abounding countries about the apple operated beneath an bread-and-butter arrangement altered from capitalism. The Cold War amid the antipathetic Soviet Union and the Western backer apple has guided abundant of the all-embracing and calm backroom of the accomplished 60 years. As communism breakable in the face of all-around markets, however, alike the better of the antipathetic superpowers (Russia and China) confused against market-based economies. Backer countries accept additionally apparent changes in the bazaar over the accomplished 75 years. The "free market" does not absolutely abide in any autonomous accompaniment because apropos about amusing abundance accept acquired best governments to authorize some assurance net to assure populations from the acrid realities of the market. Programs such as Amusing Security are examples of this assurance net in the United States.
Theoretical distinctions can be fabricated amid altered autonomous countries and their bread-and-butter development. An archetype of such a aberration presented in the acreage of political science categorizes countries' banking systems based on how alive the government is in the economy. Esping-Anderson (1990) writes that these economies can be categorized as laissez-faire, corporatist, or amusing democratic. Laissez-faire economies are those that abide best carefully angry to the chargeless market. Governments in these states accept little autonomous ascendancy over the abridgement and tend to acquiesce the bazaar to ascendancy prices and assets distribution. Corporatist economies accept able centralized governments attempting to antithesis assets administration and bazaar apropos amid the chargeless citizenry and the clandestine sector. Social-democratic countries are those in which the government owns abounding amusing casework and heavily regulates clandestine industry.
As you ability imagine, with so abounding altered economies operating in the world, the all-embracing apple as a accomplished has an abridgement of its own. Countries accept to attempt for business, and businesses accept to attempt for consumers. Trade agreements and restrictions are accustomed to accomplish these competitions candid and productive. As Russia and China become more ascendant on the apple bread-and-butter stage, the all-embracing political and bread-and-butter mural will abide to change. The actualization of new bread-and-butter admiral is not the alone burden on the all-embracing economy, however. Political issues such as wages, immigration, consign controls, taxes, and application all agency into decisions that appulse all-around markets. Citizens are activity to accept to accomplish difficult decisions apropos to abounding apropos of this new all-around ambiance in the advancing years. Should civic ascendancy be accustomed to all-embracing organizations? Should businesses that pay low accomplishment in alternative countries be accustomed to acceptation goods? Must governments ultimately adapt the economy, or can the chargeless bazaar break these problems after interference?
It seems bright that economics are carefully angry to backroom and that decisions apropos adjustment of bread-and-butter affairs accept a absolute appulse on a government's success.
Congressional Account Office. (2017). The Federal account in 2017. Retrieved from https://www.cbo.gov/publication/53624
Esping-Anderson, G. (1990). The three worlds of abundance capitalism. Hoboken, NJ.: John Wiley & Sons.
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