Question

Answer the following questions based on the Video: We the Economy: “Amazing Animated Film on the Debt and the Deficit and “The Fiscal Ship” computer game.

1) List your main three goals in “The Fiscal Ship”.

2) For each of your goals, list two policies you used to achieve these goals. Explain how your goals and policies affected the government budget and the debt.  

Remember that your choices have real life ramifications. Please do not enact policies and create a country that you are not willing to live in just to balance the budget. We all have to live here.

Answer 1

1) Fiscal ship game challenges us to put the federal budget on a sustainable course

The three aims

1.Reduce inequality

2.Invest in the future

3 Fight climate change

3) Policies adopted for achieving the three goals are as follows

*Policies to reduce inequality

1.Boost low wage workers security

2.increse infrastructure spending

3.Increse tax on capital gains and dividends

4.Expand earned income tax credit

Although the measures like first two will result in increased government expenditure.lt will be almost balanced by the increase in revenue via taxes

*) Policies to invest in the future

1.More loans for students and simplification of the terms and conditions for that.

2 Benefits for the educated young population to get training.

3.increse the budgets of National Science foundation and NASA and National institutes of health

4.Provide new scholarships for researchers.

The incresed spending on NASA and National science foundation won't hurt budgets much because budgets of these agencies represent less than 1.5 percent of federal outlay.How ever the policies for students will be expensive

* ) Policies to fight climate change

1 imposition of carbon tax

2.Provide incentives for the production of electric vehicles

3.Tax reductions for companies that invest in conserving the environment.

4.Promotion of research in the field of renewable energy generation as well as environmental protection.

Even though implementing carbon tax will be problematic it will raise government revenue as well as protect the environment.Research funding though expensive will have positive long run impact.