Illustrate what principles should guide policy makers

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Reference no: EM1362301

A. Will the Social Security system remain solvent? Or is that the real problem with the Social Security system? In other words, will a fully funded Social Security trust fund be able to meet the financial challenges as the boomer generation retires?

B. Federal budgets are affected by a wide range of factors, including wars, demographic pressures, recessions, and the choices that our politicians make on spending and taxes. But what principles should guide policy makers? Should they cut spending and raise taxes to reduce the national debt over time? Or does the level of the national debt really matter? What do you think? In your pro or con discuss the following salient issues:
(a) Deficits and inflation-in other words, does the budget deficit matter with respect to inflation?

(b) Government debt and future generations-or is government debt a burden on future generations?

Reference no: EM1362301

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