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Macroeconomic - Essay Example

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Summary
The Morning After, Start Now” by Michael Tomasky discusses four vital issues that the newly re-elected president must address in his second term in the White House. These are fiscal cliff, climate change, immigration and foreign policy which all show some relevance to…
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Macroeconomic
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Macroeconomic

Download file to see previous pages... Climate change may no longer be ignored and new policy points to carbon tax to deter carbon emissions. Immigration is another pressing issue where major reform may soon be in the works. The Democratic from Latinos signify a possible policy change in their favour. Finally, Mideast tension is a complicated problem where the author said that “Obama’s biggest second-term job is avoiding World War III” (49).
A fiscal policy that promotes revenue generation through taxes paves the way for government to have an increased budget for government expenditure and avoid budget deficit. Federal expenditures account for “(1) pension and income security, (2) national defense, (3) health and (4) interest on the public debt” (McConnell and Brue 85). The taxes that may be accumulated from carbon tax will address the prevalent environmental issues and these funds will most likely be used to promote environmental measures in avoidance of natural disasters. Allowing a lenient immigration policy is perceived to reduce employment opportunities to resident citizens. However, this issue is more often a matter of social justice and existing illegal immigrants settle for unsatisfactory working conditions. An increase in population concurrently leads to a parallel increase in federal expenditures. The same assessment is true for engaging in war which accounts for large budget deficits and public debt since it reallocates economic resources for war goods such as military spending for their personnel and armaments (ibid ...Download file to see next pagesRead More
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