Abstracts » Business, international

Calm down

Article Abstract:

The US budget surplus can be calculated with or without the Social Security surplus, and there is general agreement that social security funds should fund pensions in the future. The debate on usage of the surplus has been related to revenue surpluses after expenditure. There are different calculations of surpluses, which may all be too optimistic, since the economy may not perform as well as expected, and planned spending cuts may not be implemented. President Bill Clinton has plans to use some of the surplus for debt reduction, which is wise since there may not be enough of a surplus to do this.

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Counting their chickens

Article Abstract:

The US federal budget is forecast to be in surplus amounting to $4.5 trillion in the 15 years from 1999. The Republicans seek tax cuts, but have agreed with President Bill Clinton that 62% of the surplus should go toward saving the social security system. There will be debates on what should be done with the remainder, with Clinton seeking funds for health care, tax incentives for savers, and defense. There is still the problem that forecasts are often inaccurate, and the surpluses may not be as large as forecast, or could disappear.

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Budgetary follies

Article Abstract:

The US looks set to achive Budget surpluses, and the two main parties agree on many aspects of fiscal policy, yet disputes have arisen about the Budget. Crises have occurred almost annually from 1994 when Republican control of Congress began. Federal Budget Consulting group's Stan Collender argues that failure for a Budget to be passed is less serious when there is a surplus since Wall Street is less concerned and politicians are freer to strike poses. Neither main party has accepted budgetary caps. Republicans are internally divided and appear almost to have abandoned plans to cut taxes on a large scale.

Economic policy, Republican Party (United States), Democratic Party (United States)

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