Question

1. Explain how mandatory spending comes about relative to discretionary spending. Then assign the following programs to each: interest payments on the debt, national defense, Social Security, food stamps. (One page in length)

Answer 1

Mandatory spending is the spending which is not subject to appropriation. On the other hand in discretionary spending it is the choice of govt how much to spend. It is more flexible compared to mandatory spending. But mandatory spending has its own benefits E. G often payments of supreme court judges is charged expenditure which benefits judges because they are not affected by whims of govt. Mandatory spending is thus beneficial when expenditure is necessary to make. But it can't not be adjusted according the situation of economy.During recession the govt spending needs to be increased and during boom needs to be decreased. It can be achieved by discretionary spending

Interest payment on debt is mandatory. If govt doesn't pay there will be less of confidence on govt and chaos.

National defense is discretionary. It can be increased during war and reduced during peace

Social security is mandatory in usa but in some countries like India it is discretionary

Food stamps programme is mandatory. The govt has to spend as per population of poor people