Response Guidelines
Please respond to at least one of your peers (see attachment). State whether you agree or disagree with any or all of the reasons given and why. Use the course readings and your own research to support your arguments and use APA guidelines for citations and references.
Response Guidelines
Please respond to at least one of your peers (see below). State whether you agree or
disagree with any or all of the reasons given and why. Use the course readings and
your own research to support your arguments and use APA guidelines for citations
and references. Please remember to be respectful at all times.
Peer Response
I believe that the United States should seek to increase federal spending because a lot of
government funded programs depends on it, for example CHIP insurance. A lot of families
depends on this health insurance program for their children. Especially those who do not qualify
for Medicaid Services. In addition, funding is needed for children who come from low income
families to receive the necessary resources for their schools. As stated on www.usnews.com
“school districts have the responsibility to make sure that the students that need the most
resources actually get them and that federal funding is truly supplemental for these students.”
Lastly, government spending on repairing, and expanding highways are important to the
consumers that have to travel on it on a daily basis. For example, during the recession years ago
many consumers reduced their spending in which led to an increase in private sector saving.
Therefore, rises in taxes may not reduce spending as much. The increased government spending
may create a multiplier effect. If the government spending causes consumers who are
unemployed gain jobs, then they will have more income to spend leading to a further increase in
aggregate demand. As stated by McConnell, Brue, and Flynn (2014) “The government may
combine spending increases and tax cuts to produce the desired initial increase in spending and
the eventual increase in aggregate demand and real GDP” (pg. 291).
McConnell, C., Brue, S., Flynn, S. (01/2014). Macroeconomics Principles, Problems, &
policies,20
th
Edition. [Bookshelf Online]. Retrieved
from https://online.vitalsource.com/#/books/1260085716/
US news. (2017). Retrieved from https://www.usnews.com/opinion/articles/2016-05-06/the-
federal-government-should-do-more-to-close-school-funding-gaps