Response Assignment 4

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