Essay on Government Spending, Deficits, and Keynesian...

A growing government is opposite to America’s economic interests because the various methods of financing a government - taxes, borrowing, and printing money have harmful effects upon the economy. There are many reasons why there is a high deficit in the United States such as extensive spending. This is true because government spending is often economically destructive, regardless of how it is financed. There are many causes of the steady growth in U.S. trade deficits. There are many people are against the high deficits especially economists. â€Å"Economists define government intervention in the foreign exchange market as the buying or selling of foreign exchange for the purpose of manipulating the exchange rate. â€Å"(Case, pg. 398)†¦show more content†¦Yes, the reason for the high budget deficit matter because many economists feels as though this will eventually affect our children and/or even our grandchildren. Not only that we must know how to budget the money. The government needs to know if they need to offer higher interest rates to attract enough buyers of government debt. Excess amount of borrowing adds to the National debt which means the Government has to spend more each year. Another reason why it matters we need to cut out and/or investigate where the wasteful spending is going and if we need to cut back on public sector spending or by raising the burden. There are few programs I think that we could cut to help in our financial situation right now such as public assistance. I am all for help ing people in need especially children, senior citizens, and disabled. However, I am not willing to offer or give assistance to a person who abuses the system. I know several people who receive public assistance and they are perfectly stable enough to work, but they rather not. If you have been on the program more than 5 years you should be released. We have allowed some people to take advantage and it has put a minor dent into the United States spending.Show MoreRelatedKeynesian and Monetarist Economic Theories1732 Words   |  7 Pagesï » ¿ Keynesian and monetarist economic theory: Budget deficits, supply-side economics and trade deficits Keynesian economic theory arose first in opposition to classical economic theory during the 1930s. Keynes developed his philosophy as a way of remedying the aftereffects of the Great Crash, which had spiraled into a great, world-wide depression. According to classical economic theory, the ups and downs of the business cycle are to be expected. Eventually, prices become so low that peopleRead MoreEssay about Monetarist and New Classical theories1452 Words   |  6 PagesUniversity of Chicago, and Edmund S. Phelps of Colombia University. It was later more fully developed by Robert E. Lucus Jr, of the University of Chicago. 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