Fiscal Policy -- Applications

Answer the following questions:

1. The US National Debt Clock tracks the debt. To see it, visit www.brillig.com/debt_clock.

2. Find out about the US Treasury government bills, notes and bonds at www.publicdebt.treas.gov/of/ofaucrt.htm

3. Summarize liberal and conservative views on a constitutional amendment that would require that government balance its budget. For the liberal position, go to www.movingideas.org For the conservative position, go to www.concordcoalition.org or www.ncpa.org/pd/budget/budget-1.html.

4. What is the future of Social Security? Currently, Social Security is the largest holder of the national debt, a surplus that will increase and then fall as baby boomers retire. Visit the Cato Institute at www.socialsecurity.org/pubs/ssps/ssp-20es.html.

5. The US federal budget is the focal point for debate on the role of government. Identify a liberal argument in favor of increased government spending at the Center on Budget and Policy Priorities at www.cbpp.org. Identify a conservative argument against increased government spending at the National center for Policy Analysis at www.ncpa.org/pd/budget/budget.htm. For each side, give one possible counter-argument to the position taken.

6. The Conference Board at www.conference-board.org/index.htm tracks the leading economic indicators. Check the summary of the index of leading indicators and its individual components for the latest month. Is the index up or down? What has been the trend of the composite index over the past tree months? Explain what the index of leading indicators is and how it relates to discretionary fiscal policy.