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If the government is running with a budget surplus it

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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. The automotive industry is one of the most important industries in the United States. The industry drives the employment; affects the deficit, and deals with imports and exports. Since 2006, the automotive industry has taken a hit in sales and job loss. The government has been involved a great deal in trying to repair the industry because ultimately it creates jobs and economic growth in the U.S. “We can recognize that economic growth and GDP
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are not themselves independent of each other with GDP growth known to be a major predictor of employment growth since it can “generate an increase derived demand for workers”.” (Thompson 2013) The deficit in the United States can slow down the automotive industry by sales in exports decreasing. The prices for exports would increase causing fewer sales of automobiles. In the current economic recession, the United States’ fiscal policy has placed unrest and instability among the population. The positive and negative outcomes of the fiscal policy,
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