The US has seen its debts rising to 62% percent of the economy in 2010. Economists point at the global financial crisis as the cause of this rise. Additionally, during the worldwide recession, most countries…
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With an end to the global recession, economists predict the world economy would not fully recover. Debts will continue to increase hence affecting negatively on the economy. Deficits will cause the interest rates to rise. It is a means of covering the risks associated with the losses brought by the deficits.
Debts will cause economic resources to be scarce. The government will direct the available resources towards paying the debts. For instance, the US, which borrows externally, will have to avail its internal resources to pay debts outside the US economy.
The debts will cause a reduction in investment opportunities. Investment is the backbone of the economy, and a reduction in it will result to slow economic growth. Furthermore, without clearance of debts, there would be high levels of debts in future.
The US has implemented reforms in the social security, Medicare and Medicaid sectors. It is a means of reducing the country’s debts. The reforms include report long-term obligations, create long term budgets for entitlements, and make retirements fair and affordable (Moore,
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Currently people earning $ 110,000 or more significantly contribute towards the fund. The fund earns its resources from mandatory cuttings from wages of working class, revenue interests generated by Social Security Fund and income tax paid by high earning class.
The main focus in the essay is on the viability of the Medicare program. Though, as it shown in the essay, the program is effective in providing medical services to vulnerable groups, there a need for a better medical policy from the government. It is proposed to change the Medicare to a program that offers premium support to people enrolled in it.
Initially it seemed that the Act was appreciated by working class citizens, disabled and retired personnel, however after certain time frame when people started experiencing the Act they realized it was not what was expected from the Government.
The Act is not accepted open heartedly by most of the working class individuals and those who are a member of American Association of Retired Persons (AARP) 2 as it seems convenient to most of the people to acquire benefit from the Act according to their income and affordability.
(President Bush, 2) Given that social security reform is an agenda for many interest groups in the company, then it is essential to sieve some of the sources of this information so as to come up with a comprehensive and balanced social reform plan. These details will be examined below.
According to th report the author talks that We can also expect to cuts in areas such as armed services by way of continued closings of bases, which often times are located in rural areas and are the basis of the local economies. These are areas, when the government makes cuts to bring public debt under some semblance of control.
First, governments have been running on budget deficits for longer than two decades. Secondly, prospects for global growth have been deteriorating over the past few months. Third, there is a growing sense of unease among many sensible people about government’s
The program started covering the disabled people in 1973. The program provides hospital insurance where the people enrolled are protected against huge medical costs. The program also offers supplementary medical insurance program whereby
The PPACA, ACA or the “Obama care” is a United States federal healthcare policy signed into law by President Barrack Obama on March 23, 2010. This healthcare federal statute had in its provisions a policy of providing affordable healthcare to the U.S.
3 Pages(750 words)Essay
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