Fiscal Policy Paper - Essay Example

How and why the U.S.s deficit, surplus, and debt affects Future Social Security and Medicare users How and why the U.S.s deficit, surplus, and debt affects Future Social Security and Medicare usersAn economy that operates under huge deficits, surpluses and debts affect the stakeholders in one way or another. Such economies expose individuals and companies to severe economic complications that compromise their capacity of acquiring crucial services. This is evident since the conditions reduce the economic stability of the nation, GDP strength, currency value, financial reputation, and operations in every sector of the economy (Whitehouse, 2010).

In US, the consequences of deficits, surplus, and debts affect various groups of taxpayers that include Medicare users, students, exporters, future social security, and unemployed individuals. The huge deficits and debts the US is experiencing are attributable to the increased unbudgeted spending in diverse sectors that include Social security and insurance scheme for the disabled. The increased expenses in the sectors have made the nation face serious financial challenges due to the increasing deficits and debts with minimal surpluses (Whitehouse, 2010).

The extreme economic conditions explain why the future social security and Medicare users should embrace themselves to challenging times ahead. Indeed, taxpayers in US that include Medicare and social security users have been feeling the pinch of the US economic situation. The increase in overspending has created an imbalance in the economy that in turn is leading to the utilization of the available resources in the sectors in financing other activities. The use of the resources has reduced the amount of money available to facilitate effective service delivery.

The unfolding events have resulted in inferior service delivery in the sectors, lack of medical equipments in hospitals, unemployment, and reduced social cover (Whitehouse, 2010). In particular, the taxpayers no longer receive standardized services as before in a timely manner. The level of responsiveness to their issues is also worrying lately. Variably, the meltdown has forced job cuts in various institutions providing Medicare and social security services thereby compromising service delivery.

Is because there is limited finance that can be used in sustaining quality service delivery as expected in the sectors.The surplus amount obtained can be used to support the ailing sectors in a bid to bridge the gap created by the deficit, as the government may deem necessary. The move can help in correcting the financial imbalance that may lead to the economic recession if not addressed.ReferencesWhitehouse, M. (2010). Deficit, Budget Woes Need Solutions as U.S. Nears the Precipice.Retrieved from,