Effect of US Deficit and Debt on Taxpayers

Economically there are many challenges we face as a country with our current fiscal policies. Since the 2008 financial crisis, there have been many debates in regards to how we should go about managing our financial system. Unfortunately, we as team believe that in order for us to stabilize our nation financial issues we are going to have to make restrictions in certain channels, which might affecting our way of life. One area needing attention is government spending and how it has to be reduced, and this would have a ripple effect in certain areas. Our elected officials will have to come to a compromise and determine which sectors are costly and can be reduced.

Massive layoffs will definitely affect the unemployment rate and a higher unemployment affects the economy because this means more people are on unemployment so there salaries are down so what they are spending is down. Massive layoffs has a vicious cycle and globally in 2012, 200 million people are without employment and this shows the slowdown in employment growth, which means companies aren't hiring and people aren't spending like the where. Massive layoffs affect the economy dramatically because it has a huge impact on consumer spending which in my opinion makes the world go around. If no one is buying then production is down and that's how layoffs happen, and this affects households, businesses, and the government.

If unemployment rate lowered, that means that the job market would increase. An increase in the job market would vastly increase the overall GDP of an economy (Doc 1). With the economy handing out pink slips and firing employees, a boost in employment would lead to an economic expansion (Doc 3). An economic expansion would go so far as to slow

This will have a variety effects on how businesses operate in the district. First some businesses would pass the rising cost of labor in the form of higher prices. While others may choose to hire less workers, hoping to do more with less. This could very well lead to less hiring for entry level positions as they are less likely to take a chance by hiring those with little experience. This is pertinent to teenagers and college grads with limited work experience. Some may choose to cut benefits to their employees, in order, to make up for the increase in the labor costs.

First, Business prices will raise which can affect consumers because now they’re wallets will be affected. On top of that, the population that purchases products from that company will go down which will save the company money. That’s a bad thing because the reason they fired the employees is because they did not have enough money. So they just got rid of employees that they may need now.

“By increasing the cost of labor, they reduce the demand for it.” (Zwolinski 6) Businesses could suffer from the wage increase because the expectations of skill from their employees will be much higher. Most people who are unemployed are concerned that the jobs they could once apply for will no longer be an option for work because they are underprivileged. “When jobs are scarce, then immigrants, workers with few skills or little education, and those with limited Englsih proficiency are going to have a harder time convincing employers that their labor is worth $15 an hour then their better-skilled, native, English-speaking competitors.” (Zwolinksi 5) The underprivileged make up a large part of the current employment in businesses.

Since businesses would have to pay more in salaries, they would hire less, or not hire at all.

We hear about the debt almost every day: news talks about it, politicians argue about it, even President Obama gives speeches on it. So what is the significance behind it? In this article I am going to explain briefly what the national debt is, how big it is, and what it has to do with us.

Employers forced to pay workers more will eventually cut a number of them to avoid the loss of profit, and as an effect, hundreds of thousands of hard-working Americans will suffer job loss or reduced benefits. The

Many believe the country's dramatic decent into debt began with a choice, not a crisis. In January of 2001, with the budget balanced, the Congressional Budget Office (CBO) forecast that the nation would have over a $2 trillion dollar surplus by 2010, enough money to pay off the entire national debt. In the years following 2001 political leaders chose to cut taxes, increase spending, and wage two wars solely with borrowed funds (Montgomery, 2011). Today the national debt is larger, as a percentage of the economy, than at any time in U.S. history except for the period shortly after World War II.

An increase or decrease in the unemployment rate can have a multiple effects on the Australian economy, both beneficial as well detrimental to the economic conditions and the societal outlook.

This paper will attempt to answer the question: Is the federal deficit and government deficits in general a good or a bad thing? While it may be easy to lose sight of how the government chooses to handle its money, it is also important for citizens to be conscious of how their money is being spent, and whether or not the current course that the government is plotted on is either sustainable or the best allocation of resources.

Unemployment may grow to work turnover, it may have influenced people to search more for jobs since the wages are higher, and labor substitutability. Minimum wages might not have anything to do with the unemployment rates because it could just be another cycle long term unemployed or jobless people looking for work. Long term unemployed people have a huge disadvantage when it comes to work experience since he or she has been out of the work force for so long. Technology in machinery is constantly improving which also requires employees to be constantly learning how to use the new machinery and technology. A long term unemployed person will lack the experience and training of how to use the newer machinery and technology, furthermore lowering their chances of getting the job opening position (Industrial

In the upper class and middle class, your jobs won’t be affected as much as the lower class because illegal immigrants are willing to work for low paying jobs. In the lower class your wage will decrease but not by much only 10%.

In 2011, the rate of unemployment is at 9%. Although there is a decline it has been rather slow. Financial analysts predict that unemployment rate would drop to 8%. Even for the people who still have their jobs the hours that they work have been reduced since then. With reduced hours the productivity of the workers would not be fully exploited which in the end, affects the economy. This is so because with a small fiscal base the economy has not been able to recover from recession fast enough. Although there have been positive growths in the employment rates these growths are barely enough. They do little to help in the dire situation. This only means that joblessness is something that the population would have learned to live with.