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discussion 1- page 1 due April 9
here are the instructions: Week 6 Discussion 1: Presidential Advisor
1 1 unread reply. 1 1 reply.
Required Resources
Read/review the following resources for this activity:Textbook: Review Chapter 2, 3 (pp. 56-59), 13
Lesson
Additional scholarly sources you identify through your own research
Initial Post InstructionsYou are an advisor to the President tasked with cutting at least $300 billion from the budget. The president wants your recommendations to cut lines, not large categories. Explain why you chose those cuts.
Note: These are not true US budget numbers.
DOMESTIC PROGRAMS AND FOREIGN AID
Cut some foreign aid to African countries
$17 billion
Eliminate farm subsidies
$14 billion
Cut pay of civilian federal workers by 5 percent
$14 billion
Reduce the overall federal workforce by 10%
$12 billion
Cut aid to states by 5%
$29 billion
MILITARY
Cut the number of nuclear warheads, and end the "Star Wars" missile defense program
$19 billion
Reduce military to pre-Iraq War size and further reduce troops in Asia and Europe
$25 billion
Cancel or delay some weapons programs
$19 billion
HEALTHCARE
Enact medical malpractice reform by reducing the chances of large malpractice verdicts
$ 8 billion
Increase the Medicare eligibility age to 68
$ 8 billion
Raise the Social Security retirement age to 68.
$ 13 billion
EXISTING TAXES
Return the estate tax to Clinton-era levels, passing on an estate worth more than $1 million to their heirs would have portions of those estates taxed.
$ 50 billion
End tax cuts for income above $250,000 a year
$ 54 billion
End tax cuts for income below $250,000 a year
$ 172 billion
Payroll tax increase for people making over $106,000 annually contributing more to Social Security and Medicare.
$ 50 billion
NEW TAXES
Institute a Millionaire's tax on income above $1 million
$ 50 billion
Add a national 5% sales tax
$ 41 billion
Add a tax on carbon emissions
$ 40 billion
Tax banks based on their sizes and the amount of risk they take.
$ 73 billion
Total gap covered by your budget plan
$_________________
Use evidence (cite sources) to support your response from assigned readings or online lessons, and at least one outside scholarly source.
Follow-Up Post Instructions
Respond to at least two peers or one peer and the instructor. Further the dialogue by providing more information and clarification. Minimum of 1 scholarly source, which can include your textbook or assigned readings or may be from your additional scholarly research.
| Subject | Economics | Pages | 5 | Style | APA |
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Answer
Advice on Cutting Government Expenditure
Government expenditure is key in ensuring both the operational and development issues are carried out smoothly. High government expenditure, is likely to trigger a deficit budget, and increase the rate of inflation (Atems, 2019). Insufficient cash flow on the other hand, may derail development agenda of the government. The following are therefore my recommendations on how to cut down the expenditure.
Cut down expenditure in agriculture by $ 50 billion
According to Magstadt (2017), agriculture only contributes to 1% of the United States Gross Domestic Product (GDP). This percentage is negligible, as compared to realizable returns. Investment on it should therefore be reduced by $ 50 billion.
Reduce the Federal Workforce by 30%
The current overall federal workforce has made the wage bill to be very high. High recurrent expenditure will obviously derail the rate of development. It should therefore be reduced by 30%, which is $ 36 billion
Cutting the Civilian Workers by 24%
Some of the roles performed by the federal workers is actually a publication of what is done by the civil servants (Murphy, 2018). The expenditure on this sector should be reduced by 25, which is $ 70 billion.
Reduce military to pre-Iraq War size and further reduce troops in Asia and Europe
It is high time that United States concentrates on its internal security. Expenditure on pre-Iraq war should be reduced with $ 60 billion. This can be done by reducing the size of the troops.
Cut the State Aid by 5%
The current investment on aid by the federal government is very high, owing to the fact that this expenditure, hardly contribute to the country’s economic development (Atems, 2019). The expenditure should therefore be reduced by 15%, which is $ 87 billion.
Enact Medical Malpractice Reform by Reducing the Chances of Large Malpractice Verdicts
The above law, will ensure that the citizens do not fall prey of ill-intentioned health practioners and reduce the expenditure on health by $7 billion.
Conclusion
The above proposal will help in cutting down expenditure by $ 300 billion. The amount could help in initiating other factors which could boost human development index.
References
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Atems, B. (2019). The effects of government spending shocks: Evidence from U.S. states. Regional Science & Urban Economics, 74, 65–80. Magstadt, T. M. (2017). Understanding politics: Ideas, institutions, and issues (12th ed,). Boston, MA: Cengage. Murphy, R. H. (2018). Can We Cut Government Spending? Regulation, 41(2), 7–9.
Appendix
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