The Politics Of Boom Essay Research Paper — страница 2
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is a deficit, and if tax revenues are greater than government spending there is a surplus. In 1992, the overall federal budget was in deficit $290 billion which is 4.6% of the Gross Domestic Product (GDP). To battle that Clinton used tax hikes as a part of his fiscal policy. This year, the budget is expected to see a surplus of $221 billion which is 2.3% of GDP. Because of this surplus, both candidates are promising tax cuts. Bush and Gore differ in the types of tax cuts they propose. Also their tax cuts are aimed at different groups of people. Larger surpluses are predicted for the future. The latest forecast for the ten-year budget surplus is $4.19 trillion. Latest administration projections suggest that the on-budget surplus is expected to reach almost $2.2 trillion over the next decade. This would be an increase of 290% compared with the February 2000 estimate. These surpluses may never be realized however. It is uncertain whether America’s recent rise in productivity is here to stay. Also, it is assumed that there will not be a recession: a phase in the business cycle in which the decline in the economy’s real GDP persists for at least a half-year. Recessions are marked by high unemployment. It remains undecided today, nearly a week after the election, whose economic proposals were favored among the American people. This issue is one where views differ greatly. Fiscal policy has varied with each president from Reaganomics to the Clintonian economic policy. Furthermore, taxes are on the mind of everyone who pays them so they have played a very important role in this election.