Uses of the Budget Surplus

Economics / April 23, 2015 / No Comments /
This paper looks at four possible uses of the American budget surplus (of 2000). The four possibilities are retiring debt, increase government spending, increase government transfer payments, or cut taxes.

This paper was written for an Economics 102: Intermediate Macro class. It looks at four possible uses of the budget surplus that our country first saw in 2000. The four possibilities are retiring debt, increase government spending, increase government transfer payments, or cut taxes. Each possibility is looked at with great detail.
The paper looks at the pros and cons of each possibility. A number of government and independent organizations are cited including the Congressional Budget Office, the Office of Management and Budget, and the Committee on Citizens for a Tax Cut. In the paper I conclude that the best course of action would be to split the surplus between retiring debt and increasing government transfer payments. This paper covers all aspects of the budget surplus and possible uses.

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