You are on page 1of 1

Economic Decision Makers" Please respond to the following:

Discuss how the governments influence over the U.S. economy impacts you personally. From the e-Activity, discuss which country has the most economic influence in the United States and the impact of this influence.

The governments influence on my life and in turn the economy is a conglomerate of multiple issues rolling into a theory which is defined as the following terms pronounce: A growing economy can result in negative connotations for the American people and me personally. Some of the reasons are: Extraction cost: government cant spend money until they get it which is usually from the consumer Displacement cost: Ever dollar that the government spends means less dollars in the productive sector Negative multiplier cost: Portions of the federal budget finance activities which result in a negative effect on the economy Behavioral Subsidy cost: Government spending encourages destructive choices. Welfare encourages leisure, and unemployment insurance provides incentives to stay unemployed. So the government can and does cause stagnation in the economy plus can jump start the economy through a careful balance of money in and money out. It affects me personally by limiting the job market, raising the price of gas which in turn raises the cost of food and the production of other sources. EPA legislation and other factors are also starting to show their mark on the production of coal and other fossil fuels which we rely upon for movement and productivity. In terms of US debt, we depend on: China, Japan, Britain for lending money to the USA Government in the form of the purchase of USA government treasury bonds (which must be paid in years to come with interest) in order to stop the US dollar from collapsing, China buys the highest value of USA debt.

You might also like