Before class on Monday, 04/26
Read – Lumen Learning: Macroeconomics – on Government Budget
Read – Lu (2020) – U.S. Current Debt breakdown
Before class on Thursday, 04/29
have completed or tried all of Weekly Review 10
2 thoughts on “Week 13 – Government Budget”
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Something from the material I already knew was that the government receives more money in taxes than it spends than a year. What surprised me is that the tax payers have to pay in proportion to the benefit they receive from public goods or services. Also, that the social security payroll tax is proportional up to the wage limit, but above that level it becomes a regressive tax, meaning that people with higher incomes pay a smaller share of their income tax.
The article “Government Spending” (Week 13) emphasized the importance of government budgets, specifically this article covered budget deficits, budget surplus, and a balanced budget. To summarize, all of these budgets play an important role in the government’s decision to tax, spend, borrow, lend, consume, and invest. Something that surprised me when reading this article was how low government spending for education is, it’s not even a top-four major single category of government spending. In my opinion, it’s very disappointing because I find the government spending more on education for its people as an investment for society. The more folks are educated the more likely they will be successful, and the government would benefit from this because they wouldn’t need to allocate as much money towards programs like welfare. Improved education could also have a positive impact on economic growth in the long run.