Notes 11-2 - Fiscal Politics: Raising and Spending Money A....

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Fiscal Politics: Raising and Spending Money A. Historical Background a. To facilitate collegtive action, government raises and spends $ b. Historic interactrion between Congress and President b.i. Constitutional role of congress b.ii. Budgest and Accounting Act of 1921: C gave much budget power to P b.iii. Presidents expanded budget role in 1930s b.iv. C reassertion in 1970s b.v. Recent conflicts c. Governemnt shutdown of 1995-96 c.i. Democratic president Clinton vs Republican Congress of Newt Gingrich c.ii. Longest shutdown of Am. G in history d. Near shutdown in 2011 B. Budget Situation a. Growth of entitlements a.i. Social security, medicare, Medicaid, veterans a.ii. Now over 60% of budget and increasing b. Deficit spending b.i. Fed Government spending increasing over time b.ii. Tax rates lowest since 1958 b.iii. Deficits frequent since 1970s b.iv. Fiscal discipline in mid-90s b.v. 2010: deficit = 10% of GDP c. National debt = total of annual deficits d. Debt limit d.i. Borrowing allowed by Constitution
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Notes 11-2 - Fiscal Politics: Raising and Spending Money A....

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