Economists differ in their ideas about using government spending to
stimulate the economy. Some economists follow British
political-economist John Maynard Keynes in advocating increased
government expenditure to stimulate the economy when it is in recession.
In their view, the federal deficit will decline when the economy
improves. Others favor allowing market forces to restore equilibrium
when the economy is in recession. They believe that the deficit stifles
economic growth and prosperity.
You can learn the policy preferences of a city,
county, state, other government agency by analyzing its budget. The
budget is a plan for allocating the resources required to provide
specific services and address strategic priorities.
For this Discussion, review this week’s Learning
Resources and focus on the implications of the federal deficit on a
public organization. Then, select a position either for or against a
balanced federal budget. Consider whether the gap needs to be closed
or whether there are legitimate reasons for borrowing.
The Assignment 1-2 pages
1. Post a description of your position on
a balanced national budget. 2. Justify your position for or against a
balanced national budget by explaining the gains and losses associated
with your position.
Be sure to support your posting and responses with specific references to the Learning Resources
Resource to be used:
Mikesell, J. L. (2018). Fiscal administration: Analysis and applications for the public sector (10th ed.). Boston, MA: Wadsworth.
- Chapter 4, "Federal Budget Structures and Institutions” (pp. 154-207)
- Chapter 5, "State and Local Budgets” (pp. 214-251)
- Chapter 3, "Budget Methods and Practices” (pp. 106-142)
- Chapter 6, “Budget System Reforms: Trying to Make Better Choices” (pp. 257-305)