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Social security and medical users would be affected

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Social security and medical users would be affected by this because the government would need to find ways to minimize the costs associated with these expensive programs. As the population size grows and ages, Social Security and Medicare taxes will have to increase or benefits will have to decrease in order to avoid problems in the future. At times when there was a Social Security tax surplus, the excess revenue was allocated to the Social Security Trust Funds (Waggoner, 2013). These funds are invested in government securities for redemption in the future. Debt affects these programs because if the programs are running in debt, there will likely be borrowing from either other programs or other countries which could get more expensive as interest rates are taken into account. The Social Security trust fund purchases debt from other programs in the form of nonmarketable government bonds (Colander, 2010). By 2021, the program will be running in deficit and will attain debt, rather than purchase debt from other programs unless changes are made (Waggoner, 2013). Unemployed individuals Just as with Social Security and Medical users, a government deficit would see a reduction to unemployment benefits if the government decides to cut spending. Recently, the U.S. government sequester has caused even further cuts to the federal Emergency Unemployment Compensation (EUC) program to be implemented by state governments
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Effects of U.S.’s Deficit, Surplus and Debt 4 (Hirsch, 2013). If the government is running with a budget surplus, it could seek to pay off debt, save the funds in reserves, or invest in projects that have been delayed in the past. Infrastructure projects, such as building new roads or repairing old bridges, could create jobs that may shrink the unemployment rate. If state governments are running into debt due to shortages in funding their unemployment programs, they may have to borrow money from the federal government; just as Florida had to do in 2009 (Harrington, 2013). Depending on what, if any, tax increases are implemented and what the benefits are that each state pays out, along with the length of time that an unemployed individual qualifies for them, will determine how quickly the state governments can pay this debt off. Effect on UOP Student The US deficit, surplus, and debt have a big effect on a University of Phoenix student. Each one plays an important part in how a student will be able to pay for college and how much their tuition may be. As part of fiscal policy, the government has to cut spending when the deficit is too big, there is too much debt and no surplus (Colander, 2010).
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