Fiscal Policy Paper Essay Example | Topics and Well Written Essays - 250 words

Fiscal Policy Paper - Essay Example The huge deficits and debts the US is experiencing are attributable to the increased unbudgeted spending in diverse sectors that include Social security and insurance scheme for the disabled. The increased expenses in the sectors have made the nation face serious financial challenges due to the increasing deficits and debts with minimal surpluses (Whitehouse, 2010). The extreme economic conditions explain why the future social security and Medicare users should embrace themselves to challenging times ahead. Indeed, taxpayers in US that include Medicare and social security users have been feeling the pinch of the US economic situation. The increase in overspending has created an imbalance in the economy that in turn is leading to the utilization of the available resources in the sectors in financing other activities. The use of the resources has reduced the amount of money available to facilitate effective service delivery. The unfolding events have resulted in inferior service delivery in the sectors, lack of medical equipments in hospitals, unemployment, and reduced social cover (Whitehouse, 2010). In particular, the taxpayers no longer receive standardized services as before in a timely manner. The level of responsiveness to their issues is also worrying lately. Variably, the meltdown has forced job cuts in various institutions providing Medicare and social security services thereby compromising service delivery. Is because there is limited finance that can be used in sustaining qual ity service delivery as expected in the sectors. The surplus amount obtained can be used to support the ailing sectors in a bid to bridge the gap created by the deficit, as the government may deem necessary. The move can help in correcting the financial imbalance that may lead to the economic recession if not