Work through the National Budget Simulation (https://www.econedlink.org/national

Question

Work through the National Budget Simulation (https://www.econedlink.org/national-budget-simulator.php) in an effort to achieve a budget deficit of $1100B dollars.

Scenario: The President of the United States has been elected on the promise of fiscal responsibility. By law he cannot reduce the net interest paid on the debt. The President's budget is projected to leave the country with a $1100B deficit.

The United States is subject to global security concerns. At the same time, a lingering recession and financial markets rescue package reduces the government's tax revenues and forces the government to increase its spending on unemployment benefits, welfare, housing assistance, food stamps, and other need-based programs. Because of the increased spending and reduced revenues, the nation falls into a projected deficit of nearly XXX in 2015 (This is the first piece of the information you need to find).

The President is committed to keeping his campaign promises in order to avoid future crisis over the US's financial standing. He must raise taxes, cut spending, or a combination of both to stay within his new guideline of a deficit below $1100B. The President turns to you, his trusted economic advisor, for help. (Note: While some events in this scenario reflect actual events, others are hypothetical for the purposes of this exercise. Budget figures in the simulation are actual White House figures of 2012, including spending and revenues of 2012.)

Given the information you watch and read in the preceding Module 7 activities, use that background to answer the following questions for discussion. Since the simulation is using 2012 numbers, start off with actual numbers just to inject a sense of reality into this discussion. Research this information from a reliable source and begin your analysis with what you found. Detail your choices for cuts and spending, paying close attention to what you read in the Bowles and Montgomery articles. Finally, analyze the effect your choices will have on the economy.

I am also including an additional resource for your analysis and scenario-reporting from the Congressional Budget Office's Options for Reducing the Budget Deficit (https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/52142-budgetoptions2.pdf), please utilize this in your reporting.

I need a typed answer.

Explanation / Answer

Answer:

We know that USA is the one of the greatest developed nation in the world. Now the economy faces lots of economic and financial crisis. In the recent data of federal budget shows that there is a deficit of $474 Billion in 2016. That means the the US spending is increased to $3.999 Tillion money. The increased spending and reduced revenue, the nation falls into a projected deficit of $1099 Billion in 2015.

The US faced the budget deficit is because the country's spending is very high and reduced the government revenue. The common spending of the country in terms of medicare, Social security measures and the deffence spending will increased the expenditure of the government. The increased military attack of the US government will increased the expenditure. But the revenue of the government will be decreased day by day. The recent economic crisis will reduce the tax revenue of the government. But now the tendancy of the government was to increase the military spending. Now it is increased to 20 percent of the total expenditure of the country. When the President sign the increase then country will projected the deficit of $1225 billion.

When the US government want to reduce the deficit then the spending must be reduced to Below 20 percent. Becuase the revenue of the government will be decreased.

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