Question

In: Operations Management

Use a search engine such as Google to do the following: Report the revenues for the...

Use a search engine such as Google to do the following:

  1. Report the revenues for the bottom line of the current (last) budget approved by Congress (surplus or shortage).
  2. Report the deficit for the bottom line of the current (last) budget approved by Congress (surplus or shortage).
  3. Report the debt held by the public for the bottom line of the current (last) budget approved by Congress (surplus or shortage).
  4. Discuss the inferences drawn from the numbers collected and provide insight about the impact of the numbers on the American economy in a response that is at least 5 sentences in length.

Solutions

Expert Solution

A. Report the revenues for the bottom line of the current (last) budget approved by Congress (surplus or shortage).

Revenues is projected to be $3.6 Trillion, but outlays is $ 4.7 Trillion clearly there is a shortage.

B. Report the deficit for the bottom line of the current (last) budget approved by Congress (surplus or shortage).

Deficit is to be understood as $ 1.1 Trillion which necessary for identifying the fiscal planning.

C. Report the debt held by the public for the bottom line of the current (last) budget approved by Congress (surplus or shortage).

Debt held by public is $ 17.8 Trillion.

D. Discuss the inferences drawn from the numbers collected and provide insight about the impact of the numbers on the American economy in a response that is at least 5 sentences in length.

Revenue shortfall over expenditure necessarily going to pressure economy. A kind of staggering deficit is to be managed. As deficit hints how far borrowing should be taken to meet the requirements. These requirements necessarily include expenditure for productive purposes. As debt is increasing at a rate that is not a good signal of efficiency of economy. So borrowing should be looked and checked. Following points should be carefully watched:

· As the deficit is getting not adjusted to efficient economic practices revenue extracting should be major focus.

· As borrowing is increasing, efficient utilization of borrowed resources should be the criteria. Borrowed resources should be deployed in new production area and used for improving infrastructure.

· Even though deficit and outlay are increasing, for a short period of time, it must be seen as indicator of forthcoming development. As expenditure increases, it must be used for empowering and making expertise in human resources. Then future pay offs would help to minimize the debt burden.


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