The national debt of the United States is the total of all the obligations of the Treasury to pay money to the federal government's creditors. By analogy, in judging whether a national debt is large of small, one ought to compare it to the income (or product) of the national economy because that income, through taxation or further borrowing, is the ultimate source of interest and principal payments on the debt. The accompanying figure presents the ratio of the national debt to the gross national product (GNP) of the United States from 1791 to 1988. National debt is the total financial obligation of the federal government. It aims to improve fiscal policy by establishing five principles of responsible fiscal management and by strengthening the reporting requirements.
The concept that relates to National Debt is education. President Bush has expanded the Pell Grant program through reforms to the student loan program. The expansion will provide more assistance for low-income students to receive higher education as well as indirectly lowering the national debt. The expansion of the Pell Grant program can prevent students from taking out large amounts of loan, which will then lower the public's debt.
The President's Fiscal Year 2006 budget will increase the maximum Pell Grant award to $4, 150 this year and $4, 550 over five years to help more students. The President's budget request will increase investments in Pell Grants by more than $15 billion over the next 10 years to provide extra assistance for the Nation's low-income Pell Grant recipients. Unlike the private debts, there are also promises to pay such benefits such as Social Security, Retirement Pensions and the national debt. Social Security is a massive fund that pays benefits to 30 million retirees as well as 15 million members of families where a parent has died or become disabled due to injury. Social Security and retirement pensions are in fact a large "obligation" to the federal government. There are actually a large number of federal publications that report the measures of Social Security obligations, but they do not report them as debts.
This is because Social Security is not considered a liability, it's because the government can increase or decrease these benefits at any time. There are a few policy recommendations that may help Americans as they reach the age of retirement. First of all, the percentage rate of retirement pensions should be increased, with that being done the strain on social security may not be so devastating, people will have more money from their pensions. Social Security should also be funded from something more than just taxed salaries.
Bush's Energy Plan expanded research and development on transmission reliability and superconductivity increasing the world's superconductivity. To improve the environment, Bush's improvements will provide increased flexibility and ensure that air pollution will not increase when power plants maintain and replace worn-out equipment. According to GOP. com, President Bush has called on Congress to pass a comprehensive energy bill that meets four major goals: promote conservation and efficiency, increase domestic production, diversify the nation's energy supply, and modernize the nation's energy infrastructure. Bush also proposed an act, "Clear Skies." This is an act that will cut pollution; it makes a dramatic and steady decline in air faster, further, and a cheaper rate than do current clean air programs. Right-to-work laws are statutes enforced in several U.
S. states, which prohibit several types of deals between employers and unionized employees, such as union security. Open shops are enforced, open shops is a place of employment at which one cannot be required to join a labor union. President Bush plans to grow the economy by creating jobs. He believes the economy needs flexibility and high skilled workforce Americans in order for this to go as planned. Bush is looking for well-trained citizens; this is necessary to close the skills gap in America.
The National Debt of America has been very high for a long time. America has been borrowing money from other countries leaving the United States in great debt. Government spending and taxes is a big factor in our debts on this nation. Creating jobs will pull our nation out of debt by collecting taxes from Americans payroll.
George W. Bush promised American that he would affirm the time-honored rights of individuals to voluntarily participate in labor organization and to bargain collectively. President Bush claims to be "committed to building an environment that encourages innovation, lowers the cost of doing business, and promotes economic growth." The President has a six-point plan that will first; allow families to plan for the future by making tax relief permanent. Second, encourage investment and expansion by restraining federal spending and reducing regulation. Third, make America less dependant on foreign sources of energy through a comprehensive national energy policy. Fourth, expand trade and levels the playing field to sell American goods and services across the globe.
Fifth, protects small business owners and workers from frivolous lawsuits that threaten jobs across America. Sixth, lower the cost of health care for small businesses and working families through Association Health Plans, tax-free Health Savings Accounts, Medical Liability Reform, and health information technology. President Bush's claims "to ensure the prosperity for the future generations, Americans must reform institutions- retirement plans, tax code, the health care system, and worker training programs that were created for the world of yesterday, not tomorrow." The Social Security Plan for Bush has been rehashed, which means he brought back his old plan. He has to borrow $2 trillion dollars over the next decade to pay for the transition, and tax away 80 % of the individual account that the worker supposedly owns.
Protecting the middle class has not been of any interest to the president. U. S. Newswire reports that Bush has no plans to address increased health care costs, college tuition or rising gas prices. Bush's plan for health care costs has been recycled health care ideas after premiums increased by $2, 600 and supports associated health plans that will increase health care costs for small business and increase the uninsured. National Debt is still a huge problem in America.
The president may say we are gaining jobs and that is true, but they are over seas. Americans are $7. 1 trillion dollars in debt. Bush may support small businesses, but he does not have the funds to pay for the problem therefore, he takes the funds from other government programs like social security and FAFSA leaving the programs with a short supply of money for the generations ahead. Recently Bush proposed adding $1 trillion to the national debt to fund the cost of shifting to partially privatized Social Security system. The massive increase in debt, coming on top of a $7 trillion national debt that is growing by about $500 billion a year, adds controversy to what already promising to be a difficult reform get enacted.
Fair trade is when restrictions are placed on imports based on environment, labor, or other concerns. This means that the government might place a restriction on a good because of how much work went into getting this good. Free trade is international trade that is free from the government interfering. This kind of trade is done when two are more groups of people come to an agreement and exchange goods without having to pay taxes. Free and fair trade has plays a significant role in national debt. This is because free trade will open us up to exchanging goods without a tax.
So, if we do not have to pay for trading, we have a less percentage of money to put our nation in debt. Now the relationship between fair trade and national debt is completely the opposite. Fair trade makes the national debt stay the same or increase. Both of these systems, fair and free trade have their ups and downs but they both are essential to the growth of our economy. To address the urgent crisis in manufacturing, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), a voluntary federation of 58 national and international labor unions, has formed the Industrial Union Council- made up of unions whose members work in the manufacturing sector. The AFL-CIO and affiliated unions established the Industrial Union Council in May 2002 to revitalize manufacturing by building on the collective strength of industrial unions through joint strategies for creating and maintaining manufacturing jobs.
The campaign for American Manufacturing sponsors events that spotlight the crisis in manufacturing which are generated by trade policies that encourage imports from other countries. Manufacturing is vital for establishing a strong economy. It generates jobs and guarantees a high standard of living for America's working families. Manufacturing is the core of state and local economies by providing jobs and tax revenues for necessary public services. To help American businesses and workers perform successfully, they must be made more competitive by implementing permanent tax cuts that are vital to creating an environment of growth and innovation.