Our Fiscal Policy: A Fix
Synopsis:
The government or “Uncle Sam”, borrows money from the Federal Reserve, or “private sector” to spend more money collects revenues of about $3 trillion, over half of which is contributed by our own hard earned money,
Fiscal Policy is used frequently so government expenditure can enable us to spend MORE for the sake of macro equilibrium, not save more but SPEND more, and then when we spend TOO much more, the government raises prices so that we can’t afford to spend more. See? Everyone wins. Fiscal Policy refers to 1 of 5 different tactics that can be used to stabilize the economy and is a tool frequently used by the government to manipulate the economy’s demand curve in order to get back to macro equilibrium. This policy explains the use of government spending and borrowing to make the puppets of the U.S. dance!
At this time, the government is in debt hundreds of TRILLIONS of dollars. We are spending TRILLIONS of dollars, per year despite this. “In 1902 the federal government employed fewer than 350,000 people and spent a mere $650 million. Today the federal government employs more than 4 million people and spends nearly $4 trillion a year.”(Economy Today, pg. 229) The year 1902 was before we started to dig into the pockets of people’s incomes through taxation which started in 1913, the same year as the Federal Reserve Act. If you take into account the inflation compared to 1902 it would mean this: In 1902 based off the numbers, the government spent $1,857.14 per person. With inflation that amount would be roughly $50,343.35 per person as of now. However, the government reasons that it spends nearly 4 trillion a year because there are over 4 million of us now. Based off of those comparisons, with inflation in mind if we were to spend $50,343.35 per person that would mean the totality of government expenditure is being overshot by $3,798,611,738,400 because we are spending one million dollars a person now, yet I don’t even make the inflation adjusted salary of gov. spending per person from 1902.
The government or “Uncle Sam”, borrows money from the Federal Reserve, or “private sector” to spend more money collects revenues of about $3 trillion, over half of which is contributed by our own hard earned money, as well as corporate income taxes, and social security taxes. Social security tax is a revenue because not everyone meets the requirements for social security retirement benefits, or they die beforehand. So the entire nation is paying for the small portion of the retired community through social security tax, which is considered a REVENUE to the government, because it does not all go to the remaining retired population, nor is it redistributed our pockets. It goes to the government who spends less than half on goods and services, and spends the rest on our NATIONAL DEBT or through income transfers, (social security) which come from us. Honestly if we are spending that much just distribute it equally and call it a day. It’s more than most need to survive, but most aren’t making even that.
All these tactics for macro equilibrium and full employment do not need government expenditure on more jobs. All these comparisons and equations are necessary to explain that 2+3=banana. Full employment, which has about 20 definitions when you only need one: if you’re 18 and over and you don’t have a job it’s called, you are unemployed. When they’re not using our money to “create more jobs” or pay back national debt, the prices go up more than usual on taxes etc. so that we aren’t making enough to save. Saving means not spending. Well saving is for eventual spending, so I am not sure of the logic there. Also, there aren’t too many employed for all these jobs that less than half of government spending is going toward. If the government can spend more than half of their revenue getting caught up on debt, than the people should be able to afford to do the same. Fiscal Policy is basically one hand holding a multitude of different equations, graphs, and charts to explain just how gosh darn confusing accomplishment of macro equilibrium is, while the other hand holding the simple explanation of government spending and borrowing needed to enact fiscal policy successfully is being shoved up your…well where a puppet hand goes.