Free

Government Debt and Global Competitiveness - Essay Example

Comments (0) Cite this document
Summary
Government Debt and Global Competitiveness Name Texas A&M University-Commerce In partial fulfillment of the requirements for MKT 521 Professor Lloyd M. Basham May 11, 2012 Table of Contents Abstract…………………………………………………………………………………………
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.1% of users find it useful
Government Debt and Global Competitiveness
Read TextPreview

Extract of sample
"Government Debt and Global Competitiveness"

...5 Leadership Practices…………………………………………………………………………....6 References……………………………………………………………………………………...8 Abstract Due to the recession in 2008, the country has incurred a lot of government debt. Today, policy makers are taking into consideration having a debt limit for the country. The debt limit would mean that the taxpayers need to shoulder additional expenses and taxes plus slow economic growth. However, this would be a big help to the government in lowering its debt and attracting foreign and local investors. The second option aside from having a debt limit is a default on the debt, meaning a no-pay for the government. This would of course make the deficit lesser but the image of the US will be tarnished forever and would be a major catastrophe. To help nullify the default, awareness and support in my side is needed. These little efforts may mean a lot especially if many would follow me. Also, aside from the efforts, leadership practices for global competitiveness will be done by me. These would include having dedication, following the company’s commitment, being honest, constantly training to be better and having the focus to achieve desired goal. Keywords: US Government Debt, Global Competitiveness, leadership practices Government Debt and Global Competitiveness US Government Debt Government debt is the stock of outstanding IOUs issued by the government at any time in the past and not yet repaid (Seater, 2008). To avoid incurring huge government debt, a limit should be followed. Debt subject to limits has two components, debt held by the public and intragovernmental debt (Concord Coalition, 2011). Debt held by the public is debt by any individual or entity besides the federal government such as mutual fund, individual investor or foreign government. Meanwhile, intragovernment debt is the debt government owes to itself such as Trust Funds from Medicare Hospital and Social Security. According to the Congressional Research Service, as cited by the Concord Coalition (2011) Congress has always placed restrictions on federal debt.  Prior to World War I, borrowing was often authorized for separate purposes such as military activities and the construction of the Panama Canal. The current statutory debt limit, $14.294 trillion, was established on February 12, 2010 (Concord Coalition, 2011).   When revenues received by the Treasury are not sufficient to meet the expenses of the federal government, the Treasury borrows to obtain the cash necessary to meet its obligations. The financial crisis in 2008 was one of the main reasons of the recent debt buildup. Due to much debt incurred in housing loans which triggered the recession, the national debt ballooned. According to the Concord Coalition (2011), in July 2008, the Housing and Economic Recovery Act increased the debt limit by $800 billion to $10.615 trillion. In October, another addition was needed and a $700 billion increase was attached to the Emergency Economic Stabilization Act of 2008.  Then, in February 2009, the American Recovery and Reinvestment Act of 2009 raised the statutory limit to $12.104 trillion.  In February 2010, the limit was raised to the current level of $14.294 trillion, an increase of $1.9 trillion. Default on the US Government Debt In a deep recession, debtors may become unable to repay their debts and Read More

Tags

Cite this document
  • APA
  • MLA
  • CHICAGO
(“Government Debt and Global Competitiveness Essay”, n.d.)
Government Debt and Global Competitiveness Essay. Retrieved from https://studentshare.org/business/1450817-week
(Government Debt and Global Competitiveness Essay)
Government Debt and Global Competitiveness Essay. https://studentshare.org/business/1450817-week.
“Government Debt and Global Competitiveness Essay”, n.d. https://studentshare.org/business/1450817-week.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Government Debt: Should we be unduly alarmed
...?Government debt: Should we be “unduly” alarmed? Is the ment “one should not be unduly alarmed by the size of government debt as it does not need to be repaid because it is only a debt that we owe to ourselves” valid? Recently, in the Caucasus Research Resource Centre program funded by the Carnegie Foundation of New York, Kyurumyan (2009) took the position that we should not be alarmed on the size of government debts and asserted that incurring domestic debts continue to be a sustainable means for addressing public deficits in the medium to the long runs, at least for South Caucasus. A similar view is the...
6 Pages(1500 words)Essay
Government Debt
...debt advancement as foreign investors will be scared away. Government bonds, which is the common form of raising revenue from local investors in local currency is highly preferred by most government because it is not affected by the credit rating of the country (Miles & Scott 2005, p.19). It is unfortunate that the United Kingdom government debt has been growing at an alarming rate over the recent past. The global recession that began in 2008 has left several developed nation into huge debts. Carlin and Soskice (2006;101), asserts that the UK higher budget deficit can be attributed to the large...
6 Pages(1500 words)Essay
Government Debt
...? ONE SHOULD NOT BE UNDULY ALARMED BY THE SIZE OF GOVERNMENT DEBT AS IT DOES NOT NEED TO BE REPAID AND THAT THIS IS A DEBT THAT WE OWE TO OURSELVES. DISCUSS Name: Instructor: Task: Date: There is no alarm for the government’s debt size as it does not need to be repaid and that this is a debt to us Introduction Government debt refers to the aggregate value of the bonds and securities that the government has incurred in deficits. This debt is outstanding and financed through borrowing (Wells & Krugman, 2009). These finances are necessary in funding government operations and implementing monetary policies that solve the populace’s problems and cushion them against recessive economies (Pentecost, 2010). The following theories affirm... that...
6 Pages(1500 words)Essay
Global Competitiveness Assignment
...? Management 535 Weekly Theme: Global Competitiveness Texas A&M-Commerce In partial fulfillment of the requirements for MGT 590 Lloyd M. Basham March 30, 2012 Table of Contents Page Abstract 3 Definition 4 My Perception of Global Competitiveness 4 Global Competitiveness in my Career 5 References 7 Abstract The world is full of competitions. In almost any aspect, there is competition. In the aspect of business and management, to be globally competitive means current and aggregate success and long term viability in the global market (Meredith & Shafer,...
3 Pages(750 words)Assignment
Deficit, Debt and Political Theory of Government Debt
...? Deficit, Debt and Political Theory of Government Debt Deficit, Debt and Political Theory of Government Debt Introduction Budget Deficit being highly dangerous vs. Ricardian Equivalence The theory of Ricardian equivalence is a theory of Economics by Robert Barro. The theory states that when a government proposes a tax cut to increase consumer spending, this leads to a higher budget deficit financed by more treasury bonds, which does not lead to much economic growth. Those who support this theory base it on the following two assumptions: 1. A budget constraint for the government does not mean that the...
6 Pages(1500 words)Essay
Running the Government without Debt
...? Running the Government without Debt Running the Government without Debt Introduction A government without debt is not an unimaginable concept. There are precedents in the federal government (US) where the period from 1998-2001was a surplus period. That such an era is possible and this policy was resorted to shows that political will goes a long way in making this argument a valid one. The period from 1972 to 1998 was a deficit one. Thornton (2012) argues that the debt problem began around 1970 when the government began running a persistent deficit. However, what is equally disturbing is...
9 Pages(2250 words)Essay
Debt
...Debt The current global recession and the increased spending on war on terror have affected American economy drastically so that the fiscal deficit of the country has increased a lot. The phenomenon fiscal deficit happens when the government spending exceeds the revenue it generates excluding the money borrowed. In other words, fiscal deficit will put each citizen of a country indebted to some external financial sources. Thus even the new born babies are indebted to somebody even from the beginning of their life on earth. It is essential for a government to avoid the fiscal deficit as much as possible by the repayment of massive public debt in order to...
2 Pages(500 words)Essay
Fiscal policy and government debt
...Fiscal Policy and Government Debt Fiscal policy is a part of economic policy of the government related to government income andexpenditure. It entails public expenditure policy, taxation policy, public debt policy and debt financing. The main aim of fiscal policy is to achieve particular objectives mainly rapid economic development (AUERBACH, 1997), bridging income inequalities and encouraging capital formation amongst other economic related goals. Interest on fiscal policy has always been evident; however, it seems to have assumed greater urgency following the recent financial crisis that has forced governments to come...
9 Pages(2250 words)Coursework
Government Deficits and Public Debt
...Introduction Governments across the globe formulate budgets on how they are going to handle the needs of their general population. It is common practice among the countries to formulate annual budgets on how they are going to spend their funds. In seeking to have funds for their projects, governments sometimes in cur debts to enable it to fund its public projects. This government debt is a collection of IOUs issued and is outstanding. This occurs when the governments borrows from the general public. The deficit in this case is addition to the amount of debt owed by the government in a specific period....
5 Pages(1250 words)Term Paper
Competitiveness in the Global Context
...Competitiveness in the Global Context Country capa to retain talent Canada global competitiveness score ranks 15th out of 144 countries. It has a score of 5.2. India on the other hand ranks 71 out of 144 countries and has a score of 4.2. In studying one of the 12 pillars of competitiveness, which is labor market efficiency, a comparison of the two countries will be provided (GCR, 2014). Canada for instance has been steady in creation of new employment opportunities for its citizens. Ever since the global recession, recovery for the country has been steady to a pace of more than 1 million jobs created yearly (GCR, 2014). In addition, the...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Government Debt and Global Competitiveness for FREE!
Contact Us