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Read this article on the U.S. debt. Then select one of the other articles from the website, read it and post a 50-75 word summary of the key points. You may not copy anyone else's article, there are plenty of them on the website.
Sunday, February 25, 2018
Will the National Debt Ever be Paid Off
Read this article on the U.S. debt. Then select one of the other articles from the website, read it and post a 50-75 word summary of the key points. You may not copy anyone else's article, there are plenty of them on the website.
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Article: The U.S. Debt and How It Got So Big: Three Reasons Why America Is in Debt
by: Kimberly Amadeo
Summary:
Currently, the U.S. debt is more than $20.1 trillion in which two-thirds is debt held by the public. The other third is the intragovernmental debt. The debt is greater than what America produces in a whole year and is the largest in the world for a single country. The reason why the debt became so large is because the debt is an accumulation of Federal budget deficits. Each new program and tax cut adds to the debt. Secondly, every president borrows from the Social Security Trust Fund. The fund increased spending but also allowed more debt finance through low interest rates. Finally,Congress continues to raise their debt ceiling. Although they try to set a limit, they will still increase it.
This debt could mean that Congress could reduce benefits than raise taxes which would hurt retirees younger than 70 as well as those not as dependent on Social Security to fund their retirement.
Reba George
Period 1
Article: U.S Debt Crisis: Summary Timeline and Solutions.
Summary:
Democrats and Republicans in Congress have created a recurring debt crisis by fighting over ways to curb the debt. Democrats blamed the Bush tax cuts and the 2008 financial crisis, both of which lowered tax revenues. They advocated increased stimulus spending or consumer tax cuts. The resultant boost in demand would spur the economy out of recession and increase GDP and tax revenues. In other words, the United States would do as it did after World War II. It would grow its way out of the debt crisis. This strategy is called the Keynesian economic theory.
Katarina Shanar 6th period
Current U.S. Federal Budget Deficit: Four Reasons the U.S. Deficit Is Out of Control
The U.S. federal budget deficit for fiscal year 2019 is $985 billion. The article explains four reasons for the budget deficit. First,the war on terror almost doubled military spending. Second, the mandatory spending has increased. The mandated programs such as social security and medicare consume ⅔ of revenue yearly. Third, the $787 billion economic stimulus package added to the 2009 deficit.Lastly, the 2008 financial crisis reduced federal revenue and taxes.
Nia Eugene 6th
Article: Government Shutdown 2018 and 2013 Explained
BY KIMBERLY AMADEO
In April, the House and President Obama agreed to $80 billion in spending cuts from the 2011 budget. Republicans want to extend the debt for three months, establish a Congressional committee spend cuts to Medicare, give more leeway in implementing sequestration, etc. Democrats want to increase spending $70 billion on the cuts that hit January. Republicans put together a budget and reopening the government. On September 9, Senate and the House passed the bill. President Trump signed it immediately, ending the shut down before government offices opened.
Article: The Surprising Truth About the U.S. Debt Crisis
In April 2011, Congress delayed approval of the fiscal year 2011 budget, almost causing a government shutdown.The article explains how the Republicans objected to the $1.3 trillion deficit.In order to reduce the deficit, Democrats suggested a $1.7 billion cut in defense spending to decrease the money for the Iraq war. Republicans wanted $61 billion in non-defense cuts to include Obamacare. The two parties compromised on $81 billion in spending cuts, mostly from programs that hadn't used their funding.
Mykaela Llacar
6th
Article: U.S. Debt to China: How Much Does It Own?
In November 2017, the U.S. debt to China is $1.2 trillion. Either the American people of the U.S. government owe $20 trillion of the national debt. China as reduced their holdings faster than the U.S. Long-term, China wants the yuan to replace the U.S. dollar as the world's global currency. Countries with lower currency values export more and their products cost less when sold in foreign countries. By owning U.S. Treasury notes, China's economy grows by keeping its currency weaker than the dollar. China's highest priority is creating enough jobs for its 1.4 billion people. The United states allowed China to become one of its biggest bankers because the American people enjoy low consumer prices. China tries to make sure that the yuan is always low relative to the U.S. dollar. Unable to call on its debt all at once, it's more likely that China would begin selling off its Treasury holdings. China will continue to be one of the world's largest holders of U.S. debt.
Henry Feng
7th
Article: National Debt by Year Compared to GDP and Major Events
The national debt is more than $20 trillion, which is greater than the economic output of the entire country. Sometimes expansionary fiscal policy, such as spending and tax cuts, was needed to spur the economy out of recession. Other times, the United States increased military spending to respond to national threats. For those reasons, the national debt by year should be compared to the size of the economy as measured by the gross domestic product. There are other events that can increase the national debt. For example, the U.S. debt grew after the 9/11 attacks as the country increased military spending to launch the War on Terror, which has costed $1.9 trillion since 2001.
Brandon Wong
7th
Article: What is public debt?
Public debt is commonly known as how much a country owes to lenders outside of its itself; this includes but is not limited to individuals, businesses, and even other governments. Public debt is typically tied to the term “sovereign debt” which is the amount of money a country has borrowed. Public debt usually only refers to nation debts but some countries also include the debt of fellow states and provinces. Furthermore, the US debt recently suppressed $20 trillion on September 8th, 2017, making the debt-to-GDP ratio around 104%. Therefore, public debt is a widely known phenomenon as well as an ever growing issue in society.
Sahib Oberoi
2nd Period
Article: What is the European Union? How it works and it's history
This unified trade and monetary body allows the flow of free trade of goods. The number of European countries that participate in this alliance will go from 28, to 27 because Brexit will cause the United Kingdom to leave. Three bodies run the EU, the EU council, European Parliament, and the commission staffs. The Schengen Area guarantees free movement to those legally residing within its boundaries, meaning visitors and residents do not need visas to visit neighboring countries. The euro is the common currency for the EU area, the eurozone contains all the countries that use the euro.The first concept of the European Union was establish in 1951, the most recent treaty of Lisbon, 2009. strengthened the power of the European Parliament.
Article: "When Does a Country Have Too Much Debt?"
By using the Debt-to-GDP ratio, economists, investors, and leaders can determine a country's ability to pay off its debt. If a country has a high Debt-to-GDP ratio, it indicates that the country's debt is rising quickly. A low ratio means that the debt is decreasing. To calculate the ratio of a country, we can take the country's total debt and divide it by the GDP. Research has shown that a 77% ratio is the "tipping point," meaning anything higher will slow economic growth.
Samuel Shteyman
1st Period
Article: Three Methods of Measuring the Dollar's Value
The exchange rate change everyday as currencies are traded on the foreign exchange market. Most countries allow forex trading to determine the value of their currencies as they have a flexible exchange rate. The dollar is held by foreign governments in their currency reserves. Many of these countries find that it's in their best interest to hold on to dollars because it keeps their currency values lower and some of the largest holders of U.S. dollars are Japan and China. When the dollar declines, the value of their reserves also decreases.
Godwish Tom
1st Period
Article: US Debt by President
The best way to calculate the amount of debt left by a president is to sum his budget deficits. The deficit also takes into account the budget spending and anticipated revenue from proposed tax cuts.This article explains and compares the different debts that various Presidents have left over the years.Obama added $7.917 trillion, a 68 percent increase, in seven years while Bush addedBush added $5.849 trillion. However, the President that added the most to the debt was Franklin. D Roosevelt added $236 billion, which was a was a 1,048 percent increase from the $23 billion debt from before. Now Trump plans to add $8.282 trillion, a 41 percent increase from the $20.245 trillion debt.
Nikita
Damodaran
Period 2
Article: Monetary Policy Tools: How They Work by Kimberly Amadeo
Summary: In order to maintain a healthy economy, it is imperative that central banks use the primary three monetary policy tools. Open market operations are when central banks buy (more money to lend) or sell securities (less money to lend). Reserve requirement is the amount of money banks keep overnight. Discount rate is the rate central banks charge its members to borrow at its discount window. These tools help increase/decrease total liquidity.
Angie Mancino
Period 6
Article: U.S. Debt Default Causes and Consequences
Summary: The government would default on debt if the debt ceiling was not raised or if the government simply did not pay interest. The consequences of the government defaulting on debt or even having a threat of defaulting is interest rate increase, usd drops, and government wouldn't pay for benefits. Businesses would also be a lot more expensive to run as people would be afraid to invest and interest rates would be too expensive. The government can prevent defaulting by cutting spending or taxing more or by allowing usd to depreciate. If US were to default, it would have a strong negative impact on the global economy due to it's large presence.
Andrew Yang
7th
Article: Debt Snowball vs. Debt Stacking
The article explores what debt stacking and debt snowballing are, and which method is better. Debt stacking is making minimum payments on all loans and then using all extra money to pay off the debt with the highest interest rate. Debt snowballing, however, is using all extra money to pay off the debt with the lowest balance first, regardless of rate. While debt snowballing gives immediate satisfaction because you pay off the debts faster individually, debt stacking will save a person more in the long run.
Hunter Boyd
Period 6
Article: Austerity Measures: Definition, Examples, Do They Work
Austerity can be anything from reductions in government spending, increases in tax revenues, or both. Through these measures, the government is capable of lowering deficits and reducing debts but is considered to be harsh steps to do so and thus, would not be accepted by a democratic public. By utilizing austerity, countries are also capable of avoiding sovereign debt and thus allows the country not to default on its debt. However, research does indicate that austerity worsens long term debt because it slows economic growth yielding an economic or debt crisis and thus should only be used during expansion.
Jibimon Noby
Period 1
Article: Fiscal Policy Types, Objectives, and Tools
Fiscal policy is the government spending and taxation that influences the economy. The two types are: expansionary and contractionary fiscal policy. The first type relates to the stimulation of economic growth, while the other is the opposite. There are many tools for the government which already includes taxation and government spending.
Michael Ibay
Period 7
Article: Simpson-Bowles Plan Summary, History, and Whether It Would Work
By: Kimberly Amadeo
The Simpson-Bowles deficit reduction plan includes six steps that will try to reduce 2.3% of the national debt. The reason the U.S is in so much debt because for every dollar it spends, it borrows $0.37 and therefore the debt overrides the output of the economy each year. The government focuses most of its budget on social security benefits, national defense, and medicare, thus leaving little room towards investments that could help the economy in the future. The following steps are encouraged to be taken in order to decrease the national debt: 1. limit government spending to 21% of the GDP. There are several ways to cut the federal workforce (through attrition) and reducing discretionary spending. 2. Reducing mandatory spending. However, this doesn’t include SSI, food stamps, or unemployment benefits. 3. Reducing federal health care spending, which is an idea widely infused in the Affordable Care Act. 4. Making social security sustainable by decreasing the benefits for those who earn higher incomes. 5. Ending tax loopholes, which will save $1.1 trillion in debt. The economy should do so by ending the Alternative Minimum Tax and itemized deductions. 6. Incorporating various process reforms that will lower the deficit of the presidents budget. While this act would have boosted the economy, it received a lot of public opposition due to its demands. Rather, Congress passed the Budget Control Act, which also failed to make a positive impact.
Lujayna Taha
2nd Period
Article: Interest on the National Debt and How It Affects You
By: Kimberly Amadeo
National debt is the amount the federal government must pay to override public death every year. The government owes many different federal agencies, this is called Intergovernmental Debt. There are only four different expenses bigger than the Federal U.S. budget, they are Social Security benefits, Medicare, military spending, and Medicaid. The public should be interested in National Debt because it affects our spending. Eventually the the debt to GDP ratio will exceed 70 percent and that will negatively affect the public.
Juliana Quintana
Pr. 6
Article: Traditional Economy: Characteristics, Pros, Cons and Examples 5 Traits of a Traditional Economy
A traditional economy is a financial system that uses history, customs and cultural beliefs. These depend on agriculture, fishing, hunting and gathering and bartering instead of a widespread form of currency. The five characteristics of a traditional economy are that they place emphasis on a family or tribe, exist in a hunter-gatherer and nomadic society, produce only what it is necessary, rely on bartering, and evolve once they begin to farm and then settle down. The advantages include little friction between members and less destruction to the environment. The disadvantages are they are vulnerable to the weather and market and command economies. America had a traditional economy in 1492 before European immigration and the south had an almost completely traditional economy before the Civil War. Many places today around still have a traditional economy.
Christian Toy
Period 1
Article: How Is the Fed Monetizing the U.S. Debt?
BY: Kimberly Amadeo
Summary:
A nation monetizes its debt when it converts debt to credit or cash. The central bank purchases the government debt and replaces it with credit. When the U.S. government auctions Treasury's, it's borrowing from all Treasury buyers. The Fed turns this debt into money by removing those Treasury's from circulation. Most people didn't worry about the Fed monetizing the debt until the 2008 recession. That's because until then, open market operations weren't large purchases. Between November 2010 and June 2011, the Fed bought $600 billion of longer-term Treasury's. Part of the Fed's intention could have been to monetize the debt. It’s never admitted that, but it makes sense. Once the Fed starts retiring its bonds, long-term interest rates will rise further. That’s because there will be a greater supply of Treasury's on the market. The U.S. Treasury will have to offer higher interest rates on the Treasury's it auctions to convince anyone to buy them. That will make the U.S. debt more expensive for the government to pay back.
Sumeyye Islamoglu
Period 1
Article: Deficit Spending: Causes, Why It's Out of Control
Deficit spending occurs when the governments purchasing exceeds the income set for the government to spend. They have strong incentives to do this and little reason to actually stay within the set income. The government actually intentionally creates a budget deficit as it drives economic growth. Most deficit is blamed on entitlements as they cost 2 trillion a year. Deficit spending is used all the time although it should only be used to boost the economy out of a recession otherwise it creates an insane debt level. Attempts to lower the debt however causes conflict within congress and has caused the government to shut down various times so it does not look like this issue will be fixed anytime soon.
Tammam Alhiraky
Period 1
Article: U.S. Debt Ceiling: Current Status and Looming Crisis
By: Kimberly Amadeo
The debt ceiling is a limit that Congress imposes on how much debt the federal government can carry at any given time. If the "ceiling" has been reached, the America's treasury department cannot issue any more bills, bonds, or notes. It will then only be able to receive and pay off tax revenues. The crisis here is that if there is not enough money to pay off the revenues, the department has to decide whether to jeapordize employee's salaries or Social Security benefits, or interest on the national debt. In the past decade, congress has increased the debt ceiling 10 times, but recently President Trump has signed a bill that increased the ceiling to December 8, 2017. Later that day, the debt exceeded $20 billion for the first time in U.S. history. Officials have a lot of pressure to keep increasing the ceiling, but this just pushes the national debt higher and higher. Although there are no direct incentives for officials to increase it, deficit spending actually does increase economic growth.
Bailey Corley
6th Period
Article: What Is the Fiscal Cliff: Explanation and Causes
By: Kimberly Amadeo
The article talks about fiscal cliff, which is a combination of four tax increases and two spending cuts. Failure of fiscal policy caused the fiscal cliff. It would have suddenly increased taxes and decreased spending at one time and taxes would have gone up $2,000 to $3,000 per household on average. Fiscal Cliff was caused by the President and a Democrat-controlled Senate disagreeing with the Republican-controlled House on the best ways to reduce the deficit and debt. However, a conclusion was not reached and the economy failed, the irony being that this was all self-imposed.
Reeba Abraham
Period 2
Article: The Difference Between the Deficit and the Debt
By: Kimberly Amado
This article discusses the main difference between deficit and debt and how each one pertains to each other. A budget deficit is when spending is greater than the revenue received for that year. That's known as deficit spending. The national debt is the accumulation of each year's deficit. When revenue exceeds spending it creates a budget surplus. A surplus subtracts from the debt. The current U.S. budget deficit is projected to be $440 billion for FY 2018. That's much lower than the record high of $1.4 trillion reached in FY 2009. The U.S. debt exceeded $20 trillion September 8, 2017. That's more than triple the debt in 2000, which was $6 trillion. Initially, deficit spending and the resultant debt boosts economic growth. This is especially true in a recession. That's because deficit spending pumps liquidity into the economy. Whether the money goes to jet fighters, bridges or education, it ramps up production and creates jobs.
Matthew Manalel
2nd Period
Article: What Is an Oligarchy? Pros, Cons, Examples
By: Kimberly Amadeo
This article is about whether the united states could be classified as an oligarchy and more specifically a plutocracy, a subset of an oligarchy. An oligarchy is an organization controlled by just a few businesses or individuals. Within a plutocracy, the leaders are the rich. A pro of an oligarchic system is efficiency because few are making the decisions and a con is that it increases socioeconomic gaps and the desire to maintain the power within the small group for as long as possible. One sign that the U.S. is now or becoming an oligarchy is that the income inequality is worsening.
Nicole Jean
1st period
Article: Social Security Trust Fund: History, Solvency, How to Fix It
By: Kimberly Amadeo
This article discusses the basics and history of the Social Security Trust Fund. It basically funds social security through three different sources, but mostly taxes. President Franklin D. Roosevelt signed the law in 1935 to pay an income for retired workers. Since then, the Trust Fund received more in income than what is paid out in benefits. One solution for this issue is to require a decrease in benefits paid, increase the tax amount, or increase the debt.
Angela Fang 6th Period
Article: How Much Did Obama Add to the Nation's Debt?
Depending on which expert one asks, they may claim that Obama added anywhere from $983 billion to $9 trillion to the national debt. This is because there are three methods to calculate how much debt a president added. The first is to subtract the debt leave when he took office to debt level when he left. The second method is to add together projected deficits. The third method is to add only deficits created by the president's incentives. According to the first method, Obama added $9 trillion; the second method says he added $6.8 trillion; the third method claims he added $983 billion.
Jerin Jose
Period 02
Oil prices are controlled by buyers who bid on oil futures contracts in the commodities market. That's why the oil prices change daily. It all depends on how trading went that day similar to the stock market .The oil futures contracts are agreements to buy or sell oil at a specific date in the future for an agreed-upon price. They are executed on the floor of a commodity exchange by traders who are registered with the Commodities Futures Trading Commission. Commodities have been traded for more than 100 years. The CFTC has regulated them since the 1920s .Potential world crises in oil-producing countries dramatically increase oil prices.That's because traders worry the crisis will limit supply.Natural and man-made disasters can drive up oil prices if they are dramatic enough.
Peter Martin
p.2
Article: US Deficit by president
There are two ways to calculate a presidents budget deficits.The most popular way is to add up the deficits for each year the president was in office. However the president has no control over the deficit in the first year because the previous presidents federal budget is still in effect. So, the best way to calculate the deficit is to look at each president’s budgets. Then add the deficits for those budgets. There are five factors that influence the deficit.First, the president has no control over the mandatory budget or its deficit.Second, the Constitution gave Congress, not the president, the power to control spending.Third, each president inherits many of his predecessors' policies.Fourth, some presidents have to deal with catastrophic events. Fifth, each year's deficit adds to the debt.
Article: Capitalism: Characteristics, Pros, Cons, and Examples
By: Kimberly Amadeo
Capitalism is an economic system where private entities own the factors of production. She states the four factors are entrepreneurship, capital goods, natural resources, and labor. Capitalism requires a free market economy to succeed. The market sets the prices of the components of supply and it also distributes them according to the laws of supply and demand. The advantage of capitalism its that ensures that an economy will produce the most desired products at an acceptable price. The cons of capitalism are it doesn't provide for those who lack competitive skills.
Paul Manavalan
7th Period
Article: Current U.S. Federal Budget Deficit
by: Kimberly Amadeo
Four Reasons the U.S. Deficit Is Out of Control.
1)The attacks on 9/11 led to the War on Terror. Greatly increased military spending
2) Mandatory spending such as benefit payouts for Social Security, Medicare and other mandated programs increased.
3)The $787 billion economic stimulus package added to the 2009 deficit by cutting taxes and extending unemployment benefits.
4) The 2008 financial crisis reduced federal revenue and taxes.
The government always overspends because it stimulates the economy, countries will lend us money, and politicians get elected.
People should be concerned because a budget deficit can be good or bad.
Jessica Neal
Period 2
Article: Who owns the US National Debt?: The Biggest Owner is You!
By: Kimberly Amadeo
Summary: This article talks about how the national debt is split up between intragovernmental holdings, which is what is owed to federal agencies, and debt held by the public, including foreign governments and investors. Each of these categories is further broken down. Of the intragovernmental holdings($5.6 trillion), half of the debt is owned by Social Security. Of the debt held by the public($14.7 trillion),almost half of the debt is held by foreign governments.
Sarah James
Pd 2
Article: Debt Crisis Causes and Cures.
By: Kimberly Amadeo
Summary: A debt crisis is when anyone whether it’s you, business, or a country owes more then they can pay off in loans. A household debt crisis when a family falls behind monthly payments. Three types of household debts are 1)Home Mortgages 2)Credit Card debt 3)Auto student loans. To solve household debt there are three ways First, increase income through a second job Second, cut expenses Third, declare bankruptcy and start over. A sovereign debt crisis occurs when a country can no longer pay the interest on its debt. Sovereign debt crises are usually caused when countries rack up too much debt to pay for wars. When they print too much money to pay off the debt, they create the even worse problem of hyperinflation. Sovereign debt crises can also be caused by a recession. The U.S. debt crisis was self-inflicted and the U.S. debt crisis was caused by the refusal of Congress to raise the country's debt ceiling in 2011. They thought it was the only way to force reduce spending and lower the national debt. Their refusal almost made the U.S. default on its debt. They finally raised the ceiling, but only after installing mandatory spending cuts, called sequestration. Congress narrowly avoided falling off the fiscal cliff.
Amaani Nazarali-6th Period.
Article: How the Fed Rate Hike Affects You
The article tells us you how the banks earn more money from you by creating high interest rates. You have to pay a higher interest rate on a fixed income account which is the libor rate. The credit card rate increases 8 to 17 than the prime rate depending on the card and your credit score. Fed rates affect fixed interest rates and a person pays 2.5 more than the Treasury note because banks calculate them as treasure yields. They make money for student mortgage loans with 15 year loan a point higher than the Treasury so banks obtain a profit to cover their costs. Fed Rates increase, interest rate on bands will with the competition. The selling of a bond purchased the value is lower than the actual value. The five ways to avoid is pay off an outstanding debt, save money on a yearly basis, buy the cars, appliances at low interest rate, invest in stocks instead of bonds for better investment and look at the yearly rates from the Federal Open Market Committee.
Kenan Edwards
6th Period
Article: What Is Reaganomics? Did It Work?: Would Reaganomics Work Today?
By: KIMBERLY AMADEO
President Ronald Reagan's conservative economic policy (now dubbed Reaganomics) attacked stagflation (economic contraction along with double digit inflation rates) and the 1980s recession. While in the past most presidents increased the government's control on the economy, Reagan cut back in these areas most prior presidents expanded on, such as business regulations and government spending. Reagan's tax cuts have now been dubbed as "tickle-down economics," a policy that the conservatives believe will work. However, this article states that cutting taxes in today's age (where income tax rates are already below 50%) would actually decrease federal revenue according to the Laffer Curve.
Angella Baby
Period 1
Article: Will the United States Ever Get Out of Debt?
By: Kimberly Amadeo
Summary: It's unlikely America will ever pay off its debt. The U.S debt also consists of debt that the government owes itself, which is mostly the Social Security Trust Fund. Three reasons why the U.S. probably might not reduce their debt is that the U.S. economy has historically outpaced the debt, Congress has a lot to lose by cutting spending, and if they raise taxes. The only way the United States will reduce its debt is if the American people are ready to tighten their belts and accept austerity measures.
Maheen Meraj
6th Period
Article: Market Economy: Characteristics, Examples, Pros, Cons
By: Kimberly Amadeo
A market economy system is a system where the laws of supply and demand direct in the production of goods and services.The six characteristics of a market economy are private property, choice of freedom, motivate to self interest, competition, system of markets and prices, and limited government. A market economy also has for advantages as well as for disadvantages which create a mixed economy.
Simran Kotak
1st Period
Article: U.S. National Debt Clock: Definition and History
By KIMBERLY AMADEO
Summary: The national debt clock tracks the U.S. debt, which topped $20 trillion on September 8, 2017. The clock is physically located at One Bryant Park, west of Sixth Avenue between 42nd and 43rd Streets in New York. The debt clock faithfully recorded the increasing U.S. debt until 2000. That's when the prosperity of the 1990s created enough revenue to reduce the federal budget deficit and debt. It seemed as if the debt clock had done its job.The Debt Clock Tracks the Growing U.S. Debt.If you look at national debt by year, you'll see that the debt has exceeded a milestone every year since the Great Recession except 2015. There are two causes for that: lower tax collection and spending to recover from the recession.
Camryn Pugh 6th period
Article: Are We Headed for Another Great Depression: Six Reasons Why 50 Percent of Americans Think Another Depression Is Likely
By: Kimberly Amadeo
Summary: This article begins with facts about the Great Depression of 1929 and how it would affect the daily life of an American today. It then provides 3 points in why people believe that another depression could occur. First, is the unemployment rate. After Americans stop looking for jobs, they are not considered unemployed driving the labor force participation down. Then, the people worry about the stock market violation as it has seen to decrease very quickly. Thirdly, they believe the financial crisis of 2008 made the economy weaker.
Camila Ferrero
Period 1
Article: Sequestration, Its Causes and Impact
By: Kimberly Amadeo
Summary: Due to Republicans and Republicans not being able to find a suitable way to lower deficits, they used sequestration, essentially cutting federal spending from the mandatory and discretionary budget. Though it may seem odd for Congress to intentionally limit their spendings, it's because Republicans wanted to lower the amount of spending used for the mandatory budget. Sequestration creates slowed economic growth, but not an issue as government spending is related to the GDP.
Ayush Singh
6th Period
Article: What Is an Economic Boom With Examples
This article explains that an economic boom is judged by GDP, when it is positive there is economic growth, but if its negative it is an economic downturn. The article then goes on to explain different causes for economic booms such as government spending, wars, and new goods. Economic booms since 1900 are separated and described, including causes, duration, and reactions. The largest of these economic booms were caused by wars and new advancements, and almost all of them were combined with new government policies.
Keegan Jones
7th Period
Article: Three Methods of Measuring the Dollar's Value by Kimberly Amadeo
The value of the dollar is measured through exchange rates, treasury notes, and foreign exchange reserves; the most common method, however, is the use of exchange rates. The dollar exchange rate compares its value to the currencies of other countries. When the exchange rate is high, it often correlates to a high value of the base US dollar. The dollar's value is usually in sync with demand for Treasury notes. The Treasury Department sells notes for a fixed interest rate and face value. When the yield of these treasury notes is high, it signifies a lower demand for the dollar until the yield goes high enough to restart the demand for the dollar around the world. The dollar is held by foreign governments in their currency reserves.When the dollar strengthens, it makes American-made goods more expensive and less competitive compared to foreign-produced goods.
Bryanna Godfrey
Period 1
What is the GDP Growth Rate?
By Kimberly Amadeo
The definition of GDP is the rate of measure of how fast the economy is growing. This is important because it shows economic health, this can change in the different stages of the business cycle. These different stages include expansion, peak, contraction, and trough. These stages can explain the different ways that GDP can change.
Hannah Golding
1st
National Debt by Year: Compared to Major Events
That the national debt is more than 20 trillion dollars. Government spending or tax cuts that created the national debt can reduce it in later years in return boosting economical growth. That's because a growing economy will produce more tax revenues to pay back the debt.For, example 9/11.
Danielle Davis
6th period
Article: Four Real World Ways to Create More Jobs
New jobs are created to stimulate healthy economic growth. Capitalism encourages competition between small businesses. There are "bubbles and bursts" in a healthy economy, as the government must create solutions to unemployment. Expansionary monetary policies are put into place to often lower the federal funds rate in order to increase the money supply.
Ashley Odstrcil
7th period
FYI 2012 us federal buget and spending
The republicans now have majority in the house and want to cut the discresonary budget by 61 billion dollars. On April 14 congress approved the 2011 budget and the Dow dropped 200 points. On April 5th 2011 the republicans presented their budget $5.8 trillion in spending and gave 4.2 trillion in tax cuts. On august 2nd the debt ceiling was raised. The Federal government received $2.450 trillion in revenue.
Income tax contributed the most to taxes 1.132 trillion or %42.6.
Reece lasris
P 6
The U.S. Debt and How It Got So Big
The U.S. debt is the sum of all outstanding debt owed by the federal government. It's currently more than $20.1 trillion.Two-thirds is debt held by the public. America's debt is the largest in the world for a single country. The debt is an accumulation of Federal budget deficits. Each new program and tax cut adds to the debt. Second, every president borrows from the Social Security Trust Fund. Third, countries like China and Japan buy Treasury's to keep their currencies low relative to the dollar. In the short run, the economy and voters benefit from deficit spending. Over the long term, as the debt-to-GDP ratio increases, debt holders could demand larger interest payments.
Bonita Hall
6th period
Article: Three Methods of Measuring the Dollar's Value by: KIMBERLY AMADEO
According to the article, there are three methods to measure the value of the dollar: exchange rates, treasury notes, and foreign exchange reserves. The dollar exchange rate compares the dollar currency to other currency such as the rupee, the Indian currency. It tells you how much of another currency you can get for a dollar. The dollar's value is usually in sync with demand for Treasury notes. Foreign currency reserves mean that countries hold onto the dollars they receive which keeps their currency value lower. When the dollar strengthens, the value/price of American goods rise. Since 2003, the dollar strengthened.
Abel Abraham
6th Period
Article: Simpson-Bowles Plan Summary, History, and Whether It Would Work
The Simpson-Bowles deficit reduction plan is a 2010 bi-partisan report on the best way to solve the U.S. national debt. It offers six steps to lower the budget deficit to 2.3 percent of gross domestic product by 2015. It would have reduced the debt by $3.8 trillion by 2020. As a result, the debt-to-GDP ratio would have dropped to a healthy 60 percent by 2023 and 40 percent by 2035. Sadly, congress never approved it. The six steps are, one, cap government spending at 21 percent of GDP. Two, reduce mandatory spending. Three, reduce federal health care spending. Four, make Social Security sustainable. Five, end $1.1 trillion in tax loopholes, thus increasing government revenue to 21 percent of GDP while lowering tax rates. Lastly, various process reforms. This plan would have worked, but it would have required some careful considerations.
Mark Mufarreh 1st period
Which President Created the Most Jobs?
Bill Clinton created the most number of jobs 23.2 million during his term. Barack Obama is second, creating 17.2 million jobs from the beginning to the end of his term. But Obama created 22.3 million jobs from the worst part of the Great Recession January 2010 through the end of his term. Some companies continue to shed workers even after the economy turns around Lyndon B. Johnson added the most jobs percentage-wise 20.7 percent during his two terms. Franklin Roosevelt created the most percentage-wise 32.7 percent since the depths of the Great Depression. But, it's not fair to use that because he was in office for more than two terms.
Amilcar Rivas
6th Period
Boom and Bust Cycle: Causes & History
The Article "Boom and Bust Cycle: Causes and History" is a summary of the expansionary period of the business cycle. In particular, the article refers to when the economy grows at a faster rate than it can sustain it is in the “boom: phase and then eventually fails, leading to an economic downturn knows as the “bust: phase. In the U.S, 'busts' are typically short lived and of minimal effect. In the context of the main article, the government should work towards balancing the federal budget and improving the national debt by preventing booms.
Roshni Jose
1st period
US Economic Outlook: For 2018 and Beyond
The GDP growth rate is estimated to stay between 2 and 3 percent- the ideal range. Unemployment should as well stay at a natural rate. The growth rate will continuously grow from 2-3 percent each year. The unemployment rate is planned to drop 3.9 percent from 2018 to 2019 and 4.0 percent in 2020. However, employment will include mostly part time employment, and create lots of structural unemployment. Interest rates are believed to increase from 1.5 to 2.9 percent. The EIA's energy outlook through 2050 predicts rising oil prices. By 2025, the average Brent oil price will increase to $86/b. Demand will drive oil prices to the equivalent of $117/b in 2050.
Tiffany Huynh
1st period
Article: Laffer Curve Explanation
The laffer Curve indicates how the governments economy responds to changing tax rates. The graph also shows the economic effect of tax cuts that indicates that lower tax rates equals more income that consumers will have resulting in them buying more. The graph shows how at the bottom of the curve there is no tax and therefore no government. Similarly when their is 100% tax, there is complete government control. There is a prohibitive range in which tax is over 50%; however, this does not occur in reality.
Angel Yeung
Period 6
Article: Demand-Pull Inflation and Its Causes with Examples
Demand-pull inflation is when aggregate demand for a good service outstrips aggregate supply. When consumer demand increases and sellers raise their prices due to unavailable supper, it results in demand-pull inflation. The five causes of demand-pull inflation includes: growing economy, when consumers spend more instead of saving, an expectation of inflation, when consumers buy things now to avoid higher prices in the future, an over expansion of money supply, strong brand, and technological innovation.
Irene Gratil
Pr 2
Article: President Lyndon Johnson's Economic Policies
LBJ's increased government spending added $42 billion, or 13 percent, to the national debt. It was nearly double the amount added by JFK, but less than a third added by President Nixon. In fact, every president since Johnson has increased the debt by 30 percent or more. Today, you have LBJ to thank for Medicare, Medicaid, and urban renewal. He also championed the right for minorities to vote, ride buses and go to school the same as whites. Without his Great Society program, there would be no National Endowment for the Arts or Humanities, no Public Broadcasting or drivers education. You also have him to thank for the scar of the Vietnam War, which he escalated but could not win.
Blesson Chacko
7th Period
Article: Why Coworking Spaces Can Be Ideal for Entrepreneurs
The articles emphasizes the real possibility of co-working units being the future of our technological age. With more than 40 percent of the workforce in the U.S. and 45 percent of the workforce in Canada will consist of freelancers, independent contractors and on-demand workers. This will lead to the rise of office spaces that inclusivity and brainstorming while also being low budget. The structure allows for people to be more focused and feel the need to have a set time to finish their work.
Dhilan Patel
Period 7
Article: Cyber Monday:What it is, When it starts, and current trends
Cyber Monday is November 27th, 2017 and is the first Monday after Thanksgiving. Cyber Monday is so popular because 75% of shoppers dive in first thing in the morning. 25% go during lunch and 34% go online during Monday night. 19% of the shoppers go online the rest of the week. Nearly a third of shoppers go on late, on Sundays thanks to new advancements in technology and easier online access. Cyber Monday sales have more than tripled since 2009. In 2016 sales hit 6.6 billion dollars compared to only 0.887 billion in 2009. Online retailers have utilized social media in the past years to better promote the sales being offered. This is one contributor to the rise in demand. Thanks to nearly 90% of online retailers offering sales on the Monday following Thanksgiving, the popularity of Cyber Monday has grown and will continue to produce huge customer turnout.
Luke Leblanc
Period 6
Article: When Will the Fed Raise Rates?
Currently, the federal funds rate is at 1.5%. It is predicted that this percentage will rise to 2% this year, and 3% in the year 2020. The article dives into why the rate will be raised. One of the major reasons is to prevent the US economy from falling into what is known as a liquidity trap. A liquidity trap is when families and business save their money rather than spending it. This issue is worrisome because interest rates were just increased which takes away any incentive for them to invest. The article then continues a discussion of federal interest rates and their negative effect on the US economy.
Garrett Foresman
Period 6
Article: "Comparative Advantage"
In this article, Kimberly Amadeo defines comparative advantage as when a country produces a good or service for a lower opportunity cost than other countries. For example, oil-producing nations have a comparative advantage in chemicals. That's because the oil provides a cheap source of material for the chemicals compared to countries without it. America’s comparative advantage is our diverse population which provides a large test market for new products.
Edward Joseph
Period 2
Article: "The biggest political scandal of our time is the national debt"
The main message of this article is that the biggest scandal of the US is its $20 trillion debt. According to the article, this debt is overlooked by many Americans who tend not to understand the gravity of the situation. If Americans paid every cent of the $2 trillion back today, then every US citizen would owe the federal government approximately $63,000. However, not everyone living in the US pays their taxes, thus forcing taxpayers to pay much more than that $63,000. 5% of Americans don't pay taxes, and in many states, welfare pays more than minimum wage, a factor that pushes people from taking jobs and become participants of the welfare program. The article emphasizes the fact that more debt means fewer jobs, less economic progress, and lower salaries.
Ashwini Prabhu
Period 6
Article:U.S. Imports and Exports: Components and Statistics
Summary:The largest sub-category of exports are commercial aircraft. Other capital goods include industrial machines , semiconductors, and telecommunications. Just 9 percent of exported goods are foods, feeds, and beverages. More than 80 percent of U.S. imports are goods. Capital goods contibute 27 percent. That includes computers and telecommunications equipment, including semiconductors. Since the United States imports more than it exports, its trade deficit is $502 billion.
Jacob Aickareth
2nd period
Article: What is the National Debt
By: Kimberly Amadeo
This article talks about the meaning of national debt and its effect on the economy. The national debt is the public and intragovernmental debt owed by the federal government. Two-thirds of the U.S. debt is the Treasury bills, notes and bonds owned by to the public. They include investors, the Federal Reserve, and foreign governments. The only way to reduce the debt is to raise taxes or cut spending. Either of those can slow economic growth. That's because they are two of the tools of contractionary fiscal policy. The debt should be compared to the nation's ability to pay it off. The debt-to-GDP ratio does just that. It divides the debt by the nation's gross domestic product. That's everything the country produces in a year.
Erin John
Period 2
Article: Four Real World Ways to Create More Jobs
The goal of creating more jobs is in order to stimulate the economy. Capitalism encourages small businesses to compete, which in result has lead to small businesses to account for 65 percent of all new jobs created. The four real word ways to create jobs are to first reduce interest rates, second spend on public works, third spend on unemployment benefits, and lastly cut payroll taxes.
Anson Sam
6th Period
Article: FTAA: Agreement, Members, Pros and Cons
The Free trade of the Americas agreement was worked on for a decade following NAFTA to establish free trade between 34 countries in the Americas and the Caribbean. It failed as, led by Bolivia, South American countries wanted to be independent of the US. Instead, the Central American Dominican Republic Free Trade Agreement was put in place.
Alisha Zute
6th Period
How Does the U.S. Economy Work
By: Kimberly Amadeo
This Article talks about how the uses it’s mixed economy to continue be a strong and competing economy in the world and we know this by calculating the GDP. The main things the help the U.S. economy be successful is Supply and Demand,Business Cycle, Inflation and Deflation, Government Influences, and Business Influences. These main principle are the thing that help continue to keep the economy strong.
Albert Tamdjo
2nd Period
Article: six steps real steps to fix debt
In this article it basically talked about the things to cut lower and decrease spending so we wouldn’t add up the national debt. Step one was to Cap government spending at 21 percent of GDP. Step two was to reduce mandatory spending. Step three was to reduce federal health care spending. Step four is to make Social Security sustainable. Step five is to end $1.1 trillion in tax loopholes, thus increasing government revenue to 21 percent of GDP while lowering tax rates. And step six Various process reforms.
Elizabeth Melchor
2nd period
Article: How Monopolies impact the economy
A monopoly is a business that is the sole provider of a good or service, resulting in an enormous competitive advantage. This allows them to set any price they want in a practice known as price fixing, or to supply inferior products because there is no motivation to innovate when the consumer has no other choice. While they are not illegal by themselves, in the US they are if they use their position to abuse consumers.
Jahrid Clyne
6th Period
Article: U.S. Deficit by President
Summary: In order to determine which president ran the largest budget deficits, economists can either add up the deficits for each year the president was in office or analyze each president's budgets. The latter method is much more accurate as a president doesn’t control the first year’s deficit. In many ways, the president is responsible for the budget deficit, but there are five other factors that can also influence the deficit such as the president’s lack of control over the mandatory budget, the power to control spending between the president and congress, the policies of each president’s predecessors, catastrophic events, and the total amount added to the debt.
Stephen Iype
Period 1
Article: Stagflation and its Causes
Stagflation is an economic growth that has leveled out and causes high unemployment rates as well as high inflation. This can be caused by the government increasing money supply and thus increasing inflation. The federal government manipulates its currency to create an economic growth. Stagflation was most common in the 1970s when OPEC cut ties with giving U.S. oil and prices quadrupled causing inflation in oil.
Raza Muhammad
Period 2
Article: Economic Boom
Economic boom is the expansion and peak phase of the business cycle and economy. It occurs when consumer demand is at an all time high, because people assume the future is gonna be good and that their investments are a safe bet.The boom also occurs when economy output is positive. A boom is very good for an economy and won't end until the GDP goes negative.
Christian Young
Period 2
Article: National Debt Under Obama
President Obama added anywhere from $983 billion to $9 trillion to the national debt, this varies because there are three ways to look at the debt added by any president; Debt Added Since Obama Took Office, Obama's Budget Deficits, and How Obama's Policies Increased the Debt. Obama's largest contribution to the debt was the Obama tax cuts, which were an extension of the Bush tax cut. Obama increased military spending to around $800 billion a year and his security budget request of $895 billion in FY 2011 set a new record. We can assume that Obama had one of the largest additions to the national debt thus far.
Christopher Tilford
Period 6
Article: U.S. Deficit by Year: Compared to GDP, Increase in Debt and Events
Summary: The article says that the deficit should be compared to the country's ability to pay it back. That ability is measured by gross domestic product. For example, the deficit in 1945 was only $45 billion, but it was 45 percent of total economic output as the country geared up for World War II. The record-setting 2009 deficit was only t 9.8 percent of GDP. That seems more reasonable when compared to the 1945 deficit, but it's still much higher than the 2-4 percent average.
Benjamin Sunny, Period 6
Article: What Is a Sovereign Debt Crisis? With Examples
Author: Kimberley Amadeo
Summary: A sovereign debt crisis occurs when a country is unable to pay back its bills. One indicator for the crisis is being unable to get low-interest rates from lenders. Investors fear the stability of the economy, causing them to require higher and higher yields in exchange for the risk. Although America has never defaulted on its debt, recent political heat by the Republican party from 2010-2013 threatened to not raise the debt ceiling. U.S debt is not likely to make drastic effects if the US Dollar keeps its place as world currency and Congress continues to keep interest rates low through quantitative easing.
Angelica Miranda
Period 2
Article: Why the nation's central bank is making the government debt worse
Summary: The article mentions that the central bank purchases government debt and replaces it with credit, basically creating it out of thin air. The federal reserve monetizes US debt when it buys treasury bills, bonds, and notes, but they dont have the print money, so they issue credit to the federal reserve member banks that hold the treasury. The problem is that the fed gives the treasury more money to spend, which leads to increase in money supply, and then monetizing the debt.
Kollin Chang
2nd Period
The article I chose to summarize was called 'Who Owns The US Debt" it talks about where the debt actually comes from and who is mostly responsible for it. It starts off by saying that about 30 percent or 5.6 trillion of the debt is owned by social security agencies. The other 14.7 trillion dollars of the debt is owned by the public.
Matthew Benton
6th period
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