Outline for Week of 6/3

“Ok, You Fix the Budget” by David Leonhardt

This article covers the current economic deficit and the multiple dilemmas we have as a nation keeping us from excelling economically.  David adds ideas as to what may be cut from our spending, and highlights that only a third of the deficit would be cured in result.  The deficit that we’re in will certainly be of discussion for years to come no matter how we may want to slice the cake and weigh our options between tax cuts and/or government spending.  He hints that both options should be in consideration as both political parties involved should elect a constructive rebuilding plan for our economy.  Finances will have to be reevaluated and decision making for these next couple terms will become very critical.

CRS Budget Process Reform

This paper highlights the budget making process and the changes that were made to it in 2011 on Capitol Hill.  After passing through the senate and house, Congress left it to the president to either sign or veto the budget plan.  Provisions were not used by the president at this time, so Obama’s approval was not as necessary as Congress’ approval, though it passed.  The paper continues discussing the actions taken place in 2012 used for the budget process.  The Legally Binding Budget Act of 2011 was highlighted in the congressional resolution, and this act enforced the idea that the budget resolution will be a joint effort between the president and congress as it was sent to office for signature.  The Expedited Legislative Line-item Veto and Recession Act of 2011 listed, allows for Congress to initiate legislative recession that may then revoke budget authority, which may result in a recession called by the president if congress then enacts upon the decision in the following 45 days.  This is viewed for appropriations in the 2012 budget process.  The Baseline Reform Act lays out a plan for future federal spending and revenue levels according to current law.  The ProGrowth Budgeting Act revises a previous budget act of 1974, to ask the Congressional Budget Office to report on house and senate committee decisions through the use of a macroeconomic impact analysis.  The final act discussed in the paper, the Budget and Accounting Transparency Act, which is held responsible for modifying the Credit Reform Act, and it compensates the Credit Reform Act and while alternating the budgetary treatment for Fannie Mae and Freddie Mac.  All of these listed acts were put into perspective for the budget process form.

“Explain This: The Illusion of Political Understanding” by Tania Lombrozo

In the political system we all want our voices heard and want to be a part of the process in one way or another.  I enjoy how Lombrozo clarifies how on a general sense we all over-estimate how much we really know about the political issues that circulate in our news today.  We are a very “media-influenced” nation with radical opinions thrown left and right over the internet and television.  We often read or hear shortened opinions whereas we feel confident in political positions, but we don’t know all of the analysis behind each statement or decision made.  Our economic crisis does conceal a fair amount of information and we hardly know the processes made in these critically acclaimed political decisions. 

“I’m Right! (For Some Reason)” by Steven Sloman and Philip M. Fernbach

           

Here’s another article depicting the knowledge the general public lacks towards to political policies and decision making.  Like the title of the article, the public does have a general and somewhat right comprehension of our political and economic systems.  These authors though wanted to really expand the mind of the general American citizen.  They go on to ask individuals to inquire all positions of a political issue instead of blindly following a political figure.  The objective was to ask how and why to every political comment made to expand political enlightenment.  As a nation we do have to question our policies, mechanisms, and appointed officials.  We’re obviously doing something somewhat incorrectly with the issues we have today, so adding critical thinking towards our political and economic systems are necessary.  This article was nicely thought out as a reminder of how little I may know as well.

“Budget Puzzle, You Fix the Budget”

This article is actually a fun exercise allowing readers like myself to simulate economic decision making while fixing the budget plan.  Every action allowed to the reader affects the 2015 and 2030 budget plans, while testing the deficit.

The Citizens Solution Guide: The Federal Budget

           

Here is an article that simplifies the country’s federal budget and how it operates.  The finances of the federal government are clarified in vast detail as well as our current deficit, its impact, and how devastating it is to our economy.  It gets into more detail with the deficit as the article lists approaches in which readers may want to keep in mind for how to address the deficit.  Each approach is backed up in detail of its pros and cons if it is implemented into our economic plan.  The first approach suggests in making long term investments opposed to short term investments, to raise revenue for covering costs.  This follows by the second approach, which proposes that we should focus on future benefits like Social Security and Medicare.  The third approach states that we must consider low taxes and reduce the size of our government, so that we can all individually thrive.   

The Citizens Solution Guide: Jobs and the Economy

This guide, like the previous one, enlightens readers with approaches towards the job market, and how it has been managed in the last century of American history.  It discusses about the recession we recently hit and how the job market fluctuated heavily in the time period.  The guide lists the number of jobs lost in this period while portraying how well the economy has to be in order to pre-recession levels with job creation and maintenance. This of course, explained in the guide, would take several long years to fully accomplish as we’re still struggling to create jobs.  The list it entails includes the first approach, which suggests that you need to spend money to make money.  The second approach asks to allow private sectors to operate freely, which would lead to competition and possible job openings and creation.  The third approach suggests in favoring and strengthening the middle class workers to help recreate the middle class.  All of these approaches are analyzed by the positive and negative aspects if they are implemented as stated.