BUSINESS CYCLES AND FISCAL POLICY

Business Cycles and Fiscal Policy

Business Cycles and Fiscal Policy

United States Budget

The economy of 2011 has just begun, but it is important to know what will happen to future trends, and most of all the subsequent year that we are studying. Also, many times we hear reports of some countries are throwing their forecasts for the years to come and do not lend them the consideration they deserve, but the finance and economy of a country that itself is going to interest for the future are those of United States

The White House made ??a public announcement about projected growth for U.S. GDP in 2011 to 2.7%. In addition, another fact of great relevance is employment. The blessed job with the unemployment rate makes us tremble. The United States expects unemployment to remain high at 9.3% on average in 2011, dropping to 8.6% in 2012 (Huls, 2011).

In the budgets Americans 2012, called U.S. President Barack Obama will propose a reduction of 2% to 3.72 billion dollars to reduce the deficit thanks to the long-awaited rise in revenue. Currently, the White House requires 32.000 million U.S. dollars (which is an increase of more than 3.5% compared to 2010) to cover proclaimed National Institutes of Health (NIH, for its acronym in English), the largest public institution of medical research world. However, it appears that health reform will not have its major effect on research since the Republicans expected to reduce the NIH budget by $ 1.000 million next year and the Federal Centers for Disease Control and Prevention (CDC, in English) to 755 million dollars.

Additionally, prevention will have lower budget for 2012, as Obama cut the budget of the CDC to 5.800 billion U.S. dollars, 8.8% (570 million) less than in 2010.

The budget did not pass by the September 30 deadline, and the government was funded by a series of seven continuing resolutions continuing funding at or near 2010 levels. The budget negotiations culminated in early April 2011, with a tense legislative standoff leading to speculation that the nation would face its first government shutdown since 1995. However, a deal containing $38.5 billion in cuts from 2010 funding levels was reached with just hours remaining before the deadline. (Paletta, 2009).

This increase in military spending is explained by the course of the war in Iraq, demanded extraordinary efforts on the domestic economy, not provided for by the Republican administration. It ...