In: Economics
What are the LONG TERM HARMS imposed upon our economy and our society by our
government’s policy of borrowing over $500 billion each year (in 2020 dollars) every year—well,
almost every year -- since 1982? That is, what are the MANY, SEVERE HARMS CAUSED BY THE
DEFICIT? Please discuss at least ten harms. 2. Please rank each of these many, severe harms
from “MOST” harmful, in your opinion, to “LEAST” harmful, in your opinion, and defend your
ranking system. 3. Which groups in our economy are “hurt the most” by this yearly deficit?
Which groups are “hurt the least”? For example, let’s say that I am an old college professor
living in a house that is paid for, free and clear. Compare me to a 20 year old college student
just starting out in life. In theory, who is harmed more by this yearly deficit? Why?
1. Please list and discuss at least ten of the ‘PROPOSALS TO LOWER FUTURE DEFICITS’ that we discussed earlier, and feel free to include some ideas that we did not discuss. Please rank these ten—or more than ten---from “best” to “worst”, in your opinion, and defend your ranking system. 2. What criteria are you using as you rank these proposals? Some guiding principles include a) what is fair? Which groups in our society and in our economy should ‘contribute more’--- either in terms of higher taxes, or lower benefits, from our government? b) which ideas would MINIMIZE THE HARM to the American people? (the idea being that we do not want to hurt the millions of people who are barely making ends meet right now) c) which ideas are “big” ideas---in the sense that they would contribute “more” to deficit reduction, compared to other, competing ideas? Please include these “guiding principles” in your discussion, AND FEEL FREE TO INCLUDE OTHER PRINCIPLES AS WELL! 3. Why may it be wise to wait a year, or two, or three, or five, before implementing some of these proposals? 4. Why do some economists suggest that these ideas be part of a 20 year plan?
What are the LONG TERM HARMS imposed upon our economy and our society by our
government’s policy of borrowing over $500 billion each year (in 2020 dollars) every year—well,
almost every year -- since 1982? That is, what are the MANY, SEVERE HARMS CAUSED BY THE
DEFICIT? Please discuss at least ten harms. 2. Please rank each of these many, severe harms
from “MOST” harmful, in your opinion, to “LEAST” harmful, in your opinion, and defend your
ranking system. 3. Which groups in our economy are “hurt the most” by this yearly deficit?
Which groups are “hurt the least”? For example, let’s say that I am an old college professor
living in a house that is paid for, free and clear. Compare me to a 20 year old college student
just starting out in life. In theory, who is harmed more by this yearly deficit? Why?
answer -
The long term harm of the deficit on the economy can make the whol,e welfare to collapse .It leads to Reduce savings and investment .when the federal government run a large borrowing /deficit , it reduces the national savings and result in lower investment.This ultimately leads to more consumption ,slow economic growth and low income of the people in the future time .It is even harmful to a country whose economy is having capital free to move to its most productive in use .The long term harm leads to higher interest costs which displaces other prioritiees and it can spirall out of control.It make the politicians to devote resources to needed public investment that can only strengthen the future economy of the country.The higher interest rate sqeezes the spending which ultimately leads to the more consumption of low income and moderate income families.
Top ten harms of the deficit
HAVE A GOOD DAY !