borrowings from the Social Security Trust Fund borrowing from other countries

Borrowings from the social security trust fund

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borrowings from the Social Security Trust Fund, borrowing from other countries such as China and increase in debt ceiling by the Congress. The economy benefits from the deficit spending but only in the short run as a lot of detrimental effects are faced in the long run. The federal spending is dived into three categories; discretionally spending, mandatory spending and interest on debt with mandatory and discretionary spending accounting for over
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THE US FEDERAL BUDGET 3 ninety percent of the total federal spending. Mandatory and discretionary spending is used to cater for all of the government services and programs. Interest on debt, which is relatively small when compared to the other two, is the interest paid by the government on its accumulated debts less the interest income the government receives from its assets (NPP, n.d.). Mandatory spending is the part of the budget which the congress legislates separate from the annual appropriations process. It is used to pay for the social security and Medicare. It also extends to cover for common safety net programs, federal transportation spending among many others. The mandatory spending amounts are determined by eligibility rules passed by the Congress through a rigorous procedure (NPP, n.d.). The eligibility rules are periodically reviewed to accommodate or eliminated some citizens. It amounts to almost two-thirds of the total US federal budget with the Social Security claiming more than a third of the total mandatory spending and Medicare amounts to 23 % of the total mandatory spending.
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  • Winter '15
  • United States public debt, United States federal budget

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