Global Economy Fiscal Policies in US

The meaning of Fiscal Policy Fiscal policy refers to the use of government revenue and expenditure to influence the economy. It relates to development guidelines where all welfare projects have to be completed. Essentially, fiscal policies influence macroeconomic activities by balancing tax and public spending.Advertising We will write a custom essay sample on Global Economy: Fiscal Policies in US specifically for you for only $16.05 $11/page Learn More Two examples of these fiscal policies include taxation and government expenditure, which aim at funding development functions, as well as, enhancing equality. Such policies curb inflation, and in the end increase employment and maintain the value of money (Perry 2008). In addition, proper fiscal policies determine the pace of the country’s economic growth. However, should there be a lack of restraint to the economic growth money will soak the market thereby leading inflation. Instrument of fiscal p olicies Taxation policies are the main government techniques for influencing the economy, as well as a weapon for saving a collapsing economy. The government uses taxation and spending to influence economic activities by increasing and reducing it. Taxation is the main source of income for the government. The most common method of taxation is direct taxation. Other forms of taxation include personal taxes, value added tax, fees levied on licenses and permits, as well as, fines. The introduction of tax cuts helps in stimulating aggregate demand (Krug 2011, 34-5). If the government increases taxes, the public will be heavily burdened, which will reduce their production and purchasing power. On the other hand, if the government decreases taxes, money supply will be high. This will then lead to high inflation. A reduction in taxes will increase disposable income and households will end up consuming the money that should have been taxed. An increase in taxes will also affect businesses. It will lower the profit margin and hence lead to an increase in production. Increased production will increase the demand for raw material and laborers. Therefore, there will be an increase in employment and the money earned will increase the level of income in the economy. There is the need to analyze taxation policy in order to avoid inflationary tendencies. Additionally, it is the mandate of all policy makers to use the power vested in them by the state to maintain a stable economy. This is because stability centres on the kind of macroeconomic policies made.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Another tool used by the government as fiscal policy is government expenditure, which are recurrent and development. Various development expenditures include opening education institution, building and maintaining infrastructure. On the other hand, recurrent expenditure involves payin g salaries to the civil service and employing a new workforce. An increase in the government expenditure goes to economic development, paying wages and salary, which involves changing the budget. Investing in infrastructure development requires skilled and casual labourers to complete the projects. This creates direct employment opportunities for the people involved in construction work and other indirect opportunities for those supplying services and logistics to the building process. The employed citizens, either directly or indirectly, earn wages and salaries, which increase their ability to purchase goods, and hence an increase in aggregated demand. In addition, the government can increase spending on education hence increase the skills and knowledge of its citizens. In the end, government will increase the employment to its people. Deficit financing policy is another example of fiscal policy, although not popular. This happens when the government expenditure is more than its re venue; the deficit can be filled when and if the central bank decides to issue new currency (Baumol Blinder 1994). It will reduce the purchasing power of the masses hence inflation and in the end, the value of currency will increase. The government can opt for domestic borrowing as a solution when it feels that deficit financing is insufficient. This is by issuing government securities and bonds; however, it will increase the cost of budget in the form of interest. Fiscal policies, if not sustained carefully, increases inflation and the rate of unemployment. The fiscal policy stance in the 2011-2012 Federal Budget The government implemented the contractionary fiscal policy by spending lower than the tax revenue. This is usually because of the pay down of government debt, which saw the 2011/2012 budget with many significant cuts. This is an indication that the government is using fiscal policies as a means of stimulating growth. This policy affected the dependent spouse tax as a bud getary component thus stimulates aggregate demand. This move will save the government an amount of $755 million (Australian budget services, 2011). Additionally, $1.1 will be saved by raising the public sector dividends and a further $470 by scrapping off low income tax offset. Businesses have not been spared, since those with a turnover of $2 million and below are written off on any motor purchases.Advertising We will write a custom essay sample on Global Economy: Fiscal Policies in US specifically for you for only $16.05 $11/page Learn More There is a noted increase in spending on the health and education sectors. Notably, the government will offset this by executing sharp cuts on defense expenditure in order to enhance operational competence in the communal service. In addition, other measures will affect natural disaster expenditure ($1.2bn this year), and the flood levee (raising $1.5bn). The government’s transfer payment policy such as une mployment benefits, social security funds to the elderly, and payments made to the poor had cuts. Consequently, reducing the transfer payment will reduce the amount of disposable income to those involved. Suitability of the Australian government’s fiscal policy stance By reducing the government’s expenditure, the banks will be willing to lend to the government because of the increase in liquidity. This will reduce the yearly government debt, consequently reducing the total public sector debt. Arguably, cutting government expenditure will reduce borrowing, which is dangerous and can downgrade the bond market. Notably, current research points out that one-dollar of tax cuts can increase G.D.P by $3, compared to a supplementary dollar of government expenditure increasing GDP by $1.40. Reducing government expenditure also reduces the level of inflation, because little money remains in circulation (Russell Heathfield 1999). Introducing infrastructure tax benefits is also j ustified and appropriate. The government cut on the infrastructure can affect productive capacity in the end. Notably, introduction of the benefits has opened the opportunity for private investors willing to invest in infrastructure development to proceed. This will ensure improved infrastructure, which will lead to increased business activities. Increasing expenditure on health and education has increased the skills and knowledge on its citizen. Essentially, this will increase the employment to the people, as well as their disposable income (Symes 1995). Increasing government expenditure will bolster economic growth by increasing the disposable income. Alternatively, the private sector should offer these essential services to the masses at minimal cost. However, quality should not be compromised. Privatizing the airports, postal services, and improving the educational sector should be strategic by shifting to a model that is based on competition and choice.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The government’s transfer payment policy such as unemployment benefits, social security funds to the elderly, and payments made to the poor had cuts. The transfer payment will reduce the amount of disposable income to the individuals involved hence justifiable. List of References Australian budget services, 2011, Federal Budget. Web. Baumol, W Blinder, S, 1994, Economics: principles and policy, 6th Edn, Dryden Press, Fort Worth. Krug, S, 2011, Optimal Taxation in a Federal System of Governments, GRIN Verlag GmbH, München. Perry, E, 2008, Fiscal policy, stabilization, and growth: prudence or abstinence?, World Bank, Washington, DC. Russell, M Heathfield, F, 1999, Inflation and UK monetary policy, 3rd Edn., Heinemann, Oxford. Symes, V 1995, Unemployment in Europe: problems and policies, Routledge, London. This essay on Global Economy: Fiscal Policies in US was written and submitted by user Cable to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

A Hermeneutical Critique on the Conquest and Occupation Essay Example

A Hermeneutical Critique on the Conquest and Occupation Essay Example A Hermeneutical Critique on the Conquest and Occupation Essay A Hermeneutical Critique on the Conquest and Occupation Essay 95-100. [ 10 ]. Awala Longkumer, â€Å"Voices of the Indigenous People,† in National Council of Churches Review (March 2006): 52-54. [ 11 ]. Murali Dhar Majhi, â€Å"Cultural Rights of Indigenous People,† in Social Action: A Quarterly Review of Social Trends vol. 60 (Oct-Dec 2010): 406-407. [ 12 ]. P. J. Sonjeeva Raj, â€Å"The Call of the Indigenous People,† in Asia Journal of Theology, vol. 10 (April 1996):64-65. [ 13 ]. She connects them with their past (as the home of the ancestors), with the present (as provider of their materials need), and with the future (as the legacy they hold in trust for their children and grandchildren). In this way, indigenousness carries with it a sense of belonging to a place. [ 14 ]. The idea that the land can be owned, that it can belong to someone even when left unused, uncared for, or uninhabited is foreign to indigenous peoples, they are holding land collectively for the community. [ 15 ]. Pushpa Joseph, â€Å"Indigenous Knowledge for Survival A Descriptive Enquiry,† in Jeevandhara : A journal For Socio-Religious Research XXXIX/ 229 (January-2009): 82. [ 16 ]. Ivan Cardinal Dias, â€Å"Identities, Aspirations and Destines of Indigenous Peoples of India,† in Understanding Tribal Cultures: for effective education, edited by Joseph Anikuzhikattil et. l. , (New Delhi: Commission For Education and Culture, 2003), 265. [ 17 ]. Seram Rojesh, â€Å"Whither Indigenous Peoples and their Culture? † in Social Action: A Quarterly Review of Social Trends vol. 60 (October-December 2010): 364-365. [ 18 ]. They believed that each piece of land had its own Baal who helped it to produce good crops. The baal could be worshipped only on his own plot of land, and if a man moved to another district he was compelled to offer worship and gifts to the baal of the district to which he had moved. [ 19 ]. In those days there was no yeast to make bread rise when it was baked, they discovered that if they kept a piece of dough from one week’s baking and allowed it to go sour, it would happen as this went on. If this went on it would make the bread unpleasant to eat. In order to break this chain and make a fresh start, week’s baking was done without the addition of any sour dough, and therefore the bread did not rise: it was ‘unleavened’. [ 20 ]. Elsie Broadie, The Chosen Nation; Book one; Founders and Leaders (Headington Hill Hall: The Religious Education Press, 1968), 71-73. [ 21 ]. C. G. Libolt, â€Å"Canaanites,† in The International Standard Bible Encyclopaedia vol. 1, edited by Geoffrey W. Bromiley (Michigan: William B. Eerdmans Publishing Company, 1979), 4589. [ 22 ]. K. Thanzauva, â€Å"Tribal/Indigenous Interpretation of the Bible: A Keynote Address,† in Tribal Theology And the Bible: A Search for Contextual Relevance, edited by Ynagkahao Vashum (Jorhat: Eastern Theological College, 2011), 20-23. [ 23 ]. Limatula Longkumer, Tribal Feminist Reading of the Bible, Tribal Theology and The Bible: A Search for Contextual Relevance, edited by Yangkahao Vashum (Jorhat: Eastern Theological College, 2011), 140-141. 24 ]. B. J. Syiemlieh, â€Å"Contextual Interpretation of The New Testament in Northeast India: A search for Principles and Methods,† in Tribal Theology and The Bible: A Search for Contextual Relevance, edited by Yangkahao Vashum (Jorhat: Eastern Theological College, 2011), 42. [ 25 ]. J. G. Mc Convillle, â€Å"Joshua, Book of,† in the Dictionary for Theological Interpretation of the Bible, et. al. , Kevin. J. Vanhoozer (Michigan: Baker Book House, 2005), 400. [ 26 ]. Laiu Fachhai, The Land Must Be Distributed Equally: The Promise and Covenant Aspects of Land in the Old Testament (ISPCK: Delhi, 2009), 23. [ 27 ]. Walter C. Kaiser, A History of Israel: From the Bronze Age Through The Jewish Wars (USA: Broadman and Hollman Publisher, 1998), 145. [ 28 ]. A. Wati Longchar, â€Å"Tribal Theology: Issues, Method and Perspective,† in Journal of Tribal Studies, vol. 1 (December 1997): 76-80. [ 29 ]. Peter Ignatius, â€Å"Interpretative Theories of Israelite Settlement,† in Jeevadhara: The Struggle for the Past: Historiography Today XXXII/187 (January 2002): 95-106. [ 30 ]. Temsuyanger, â€Å"Israelite Tribal As Resistance And Revolt Against Domination: Some Insights For Coalition Politics In Contemporary India,† in Journal of Tribal Studies, . XII/2 (July-December 2007): 76-88. 31 ]. He was a rather shadowy figure who was worshiped as the â€Å"father of man† and the â€Å"father of year†. A stele unearthed at Ras Sharma showed him seated upon a throne with a hand upraised in blessing, while the ruler of Ugarit presented a gift to him. [ 32 ]. R. K. Harrison, Old Testament Ti mes (Massachusetts: Hendrickson Publishers, 1970), 162. [ 33 ]. Antonius H. J. Gunneberg, â€Å"Israel,† in Encyclopedia of Christianity, edited by Geoffrey W. Bromiley, Vol. 2 E-I (Michigan: William B. Eerdmans Publishing Company, 2001), 769. [ 34 ]. Their offering was the fertility deity Baal, sometimes known as Haddu (Hadad, the god of rain and storm. He succeeded El as the reigning king of the Canaanite pantheon, and lived in the lofty mountainous regions of the remote northern heavens. A stele from ancient Ugarit portrayed him in his role of storm deity. His titles included the epithets Zabul (Lord of the earth) and Aliyn (the one who prevails), the latter being prominent in Ugaritic poetic literature. The theme of the Baal and Anat cycle was that of his struggle with Mot, the deity of misfortune, who had challenged the kingship of Baal. The latter descended to the Underworld realm of Mot, and there was slain. When his death was followed by a seven-year cycle of famine, Anat, the consort of Baal, revenged herself by killing Mot, after which she planted his body in the ground. Aliyn Baal then recovered, and a seven-year period of prosperity ensued, followed once more by the resurgence of Mot. The depraved nature of Canaanite religion is indicated by the character of Anat, the sister-spouse of Baal, who was variously identified with Astarte, Asherah, and Ashtoreth in cultic worship. An Egyptian text of the New kingdom period described Anat and Astarte as â€Å"the great goddesses who conceive but do not bear. The Canaanites evidently regarded their fertility goddesses as combinations of virgins and begetters of life, and they spoke of Anat in her role of sacred prostitute as â€Å"qudshu,† â€Å"the holy one. † This term is somewhat related to the Biblical term for â€Å"holy,† but it is important to realize that among Semitic peoples generally the idea of â€Å"holine ss† was applied to anything that had been dedicated to the service of a deity. [ 35 ]. P. E. Satterthwaite and D. W. Baker, â€Å"Nation of Canaan,† in Dictionary of the Old Testament Pentateuch, edited by T. Desmond Alexander and David W. Baker (Illinois: Inter Varsity Press, 1984), 600-605. [ 36 ]. Walter C. Kaiser, A History of Israel: From the Bronze Age Through The Jewish Wars †¦ 147. [ 37 ]. Lucien Legrand, The Bible on Culture; Belong or Dissenting? (Bangalore: Theological Publications in India, 2001), 6-8. [ 38 ]. Walter C. Kaiser, A History of Israel: From the Bronze Age Through The Jewish Wars †¦ 145. [ 39 ]. Yangkahao Vashum, â€Å"Colonialism, Christian Mission and Indigenous: An Examination from Asian Indigenous,† in Journal of Theologies and Cultures in Asia, Vol. 78 (2008/2009): 75-78. [ 40 ]. A. R. Ceresko, â€Å"Potsherds and Pioneers: Recent Research on the Origin of Israel,† Indian Theological Studies, vol. 34 (1997): 11. [ 41 ]. Awala Longkumer, â€Å"Experience of the Context: Socio-Political, Historical and Cultural Context of the Tribal,† in Critical Issues in Mission Among Tribals, edited by Awala Longkumer (Nagpur: NCCI, 2011), 36-37 [ 42 ]. K. C. Abraham, â€Å"Towards An Indian Christian Identity,† in Christian Identity and Cultural Nationalism: Challenges and Opportunities, edited E. C. John Samson Prabhakar (Bangalore: BTESSC/ SATHRI, 2008), 23-29. [ 43 ]. A. Wati Longchar, â€Å"Tribal Theology: Issues, Method and Perspective,† , 76-80.