Federal Budget: Part 4 – The Dilemma

Economics classes taught me that one role of government is to prop up the economy during tough times as is being currently discussed. On the other hand, a fiscally-balanced government is the assumption.

Even without financing the $700 billion, does either candidate address the deficit? With the rescue/bailout, what will the candidates cut from their proposals? As the first debate demonstrated, both candidates struggled with this question, even with moderator Lehrer phrasing it three ways. Then again, can (or even should) our government attempt to balance the budget in a recessionary environment (if it occurs or is here)? Can the government overspend trying to stimulate a recessionary economy?

Both candidates are relying on job creation; and how will this be financed? On the other hand, since job creation also creates a revenue stream and spending, is it self financing?

Both candidates draw upon American ingenuity when emphasizing non-oil-based energy needs. This sector may need government stimulus to accelerate the development. From where will the money come? How many jobs will it create? What is the return on investment?

Are either of these candidates and their party addressing the deficit and demonstrating fiscal responsibility? Will economic conditions hinder government stimulus spending? Are both parties and the presidential winner ready to lead during recessionary times for the benefit of the collective?

So many questions, yet so few answers beyond partisan politics as usual.

Other posts in this economic series: History, Revenue, Spending

2 thoughts on “Federal Budget: Part 4 – The Dilemma

  1. Pingback: Opinions in the Shorts: Vol. 13 « A Frank Angle

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