Research Project 1: The National Debt 2014 (1)

DUE: Mar 3, 2014 12:00 AM

Grade Details

GradeN/AGradebook CommentsNone

Assignment Details

Open DateFeb 24, 2014 12:00 PMGraded?YesPoints Possible100.0Resubmissions Allowed?NoAttachments checked for originality?Yes

Assignment Instructions

During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections. On the other hand, with the rise in unemployment, spending on safety net programs rise. So, to stabilize the national economy, government appears to have only two options (neither good) either to put in place severe austerity measures (cut spending) or increase borrowing.  Of course, it is very difficult to defend cuts in the federal government programs and especially the programs geared to sustain the minimum of the standard of living for the “poor.”  But increase in borrowing has major adverse impacts on the national economy.

Write an essay analyzing

·        Different theoretical views on national debt,

·        Long-run costs of high national debt, 

·        Costs of eliminating the budget deficit solely through (1) personal tax increases, and/or (2) through spending cut by decreasing in transfer payments (i.e., Social Security, Medicare and Medicaid) and in discretionary spending (such as defense and education budgets). 

Complete this essay in a Microsoft Word document, APA formatted and then submits it to "TurnItIn" for plagiarism review. Please note that a minimum of 800 words is required.