Got a tricky question? Receive an answer from students like you! Try us!

Fiscal condition of the federal government today - Essay Example

Only on StudentShare
College
Author : lennie19
Essay
Finance & Accounting
Pages 3 (753 words)

Summary

The US financial crisis threatens not only its constituent states but also the world at large.The crisis has been around for some time.It started slowly with fears of the worst since 2003.As the years progressed,the fears came to pass with the present financial status leaving more to be desired in the financial markets. …

Extract of sample
Fiscal condition of the federal government today

The US financial crisis threatens not only its constituent states but also the world at large. The crisis has been around for some time. It started slowly with fears of the worst since 2003. As the years progressed, the fears came to pass with the present financial status leaving more to be desired in the financial markets.The last six months have demonstrated financial volatility (not only in US but world over) that has never been witnessed may be since the great depression (O'Connor, 2001. pp.10-15). This paper seeks to evaluate the present fiscal condition of the US federal government with emphasis on the causes of the crisis and an exploration of the effects of the crisis on both the public and private domain. The federal government fiscal crisis is echoed by the serious struggle by the states and local governments through unfathomable and prolonged fiscal crisis which has since spread from the federal government to haunt them. The states', not mentioning the federal government's, revenues are declining sharply or if they are growing, then this growth is indeed very slow to be noticed. This is made worse by the federal government out spending its revenues. The crisis is likely to continue unless some quick and informed remedial measures are not taken.According to the 2002 financial year report, as at September 2003 the federal government had more than $1 trillion reported assets with slightly more than $8 trillion in liabilities leaving $7 trillion accumulated deficit with a reported $365 billion operating deficit ...
Download paper

Related Essays

Monetary and Fiscal policies
The major types of monetary polices are fixed exchange rate, floating exchange rate and inflation targeting. In their effort to address inflation and deflation, central banks emulate various monetary policy tools. These include monetary base, reserve requirements, discount lending rates, exchange requirements, margin requirement, regulation of consumer credit and moral suasion. Being the regulator of exchange market, central bank has vital responsibility of determining the exchange rates. However, market forces can significantly influence the interest rates. In order to arrive at an…
2 pages (502 words)
Is the Fiscal policy of India Sustainable?
The staggered recovery in the economy has apparently terminated the growth dynamics of major industrialized economies and the developed nations. The declining growth rates of the household and the shyness of the business market has been adversely affecting the world trade and the employment scenario simultaneously. The huge funding requirements of the banks and the sovereigns can be also regarded as one of the major problems of these nations. On the other hand the emerging and the developing markets in the global platform at the same time are growing at an accelerated rate2. Similarly one of…
60 pages (15060 words)
Federal Reserve
The Board of Governors is appointed by the President who controls the functions of the Federal Reserve System. There are Federal Reserve Banks which operates in major cities of US. The major objectives of the Federal Reserve System are aimed at the welfare of the US economy. The Federal Reserve System in US is responsible for maximizing the employment opportunities in US, stabilizing the prices in US economy and achieving stability in long term interest rates (Wells 58). The monetary policy is designed by the Federal Reserve System of US. The other functions of the central banking system in US…
5 pages (1255 words)
American Contracting with the Federal Government
Now the fastest growing sectors are business services, legal services, insurance and real estate". (Overview)…
10 pages (2510 words)
U.S. fiscal budgeting and government
Some critics-of both political parties-charge that the federal budget is out of control, but Democrats and Republicans often disagree on the causes or sources of this imbalance. The proposal has recently sparked debates on both the Republican and the Democrat controlled Congress, an ordinary occurrence prevalent in American history especially during those times when the president puts forward his budgetary plan. Both the Republican and the Democratic parties would often disagree on what causes imbalance on the Federal budget, and oftentimes, heated debates soon ensue with regards the subject.…
10 pages (2510 words)
The role of the Federal Government in Education
While all of these acts were designed to improve the delivery of education, to ensure equitable educational opportunities and standardization, the more recent of them (No Child Left Behind) have aroused controversy. In essence, NCLB, among others, has been interpreted as federal intervention in state affairs. As this brief reflection will argue, however, the said intervention has the potential to be highly constructive insofar as it centralises the accountability factor.…
2 pages (502 words)
State Government vs Federal Government (Similarities and differences, reporting standards etc.)
It is appropriate to highlight the differences between the federal and the state government in regard to public resources, and how the same utilized effectively.…
3 pages (753 words)