Balanced Budget Amendment - Pros and Cons in Budgeting

Balanced Budget Amendment - Pros and Cons in Budgeting The balanced budget amendment is a proposal introduced in Congress almost every two years, without success, that would limit the federal governments spending to no more than it generates in revenue from taxes in any fiscal year. While almost every state is prohibit from running deficits, federal lawmakers have never gotten  a balanced budget amendment to the U.S. Constitution signed by the president, and the government continues to run deficits in the hundreds of billions and trillions of dollars every year.   One of the milestones in the modern debate over the balanced budget amendment came in 1995, when the House of Representatives led by Speaker Newt Gingrich passed legislation that would have banned the federal government from running deficits as part of the Republican Partys Contract With America. It truly has been, I think, an historic moment for the country. We kept our promise. We worked hard. We produced a real change, Gingrich said at the time. But the victory was short-lived, and the balanced budget amendment championed by Gingrich and fiscal conservatives who had been swept into power was defeated  in the Senate by two votes. The same battle has been waged for decades and the concept is often raised during congressional and presidential campaigns because the notion of keep a balanced budget is popular among voters, particularly conservative Republicans.   What Is the Balanced Budget Amendment? Most years, the federal government spends more money than it takes in through taxes. That’s why there is a budget deficit. The government borrows the additional money it needs. That’s why the national  debt is near $20 trillion. The balanced budget amendment would prohibit the federal government from spending more than it takes in each year unless Congress specifically authorizes the additional spending through a three-fifths or two-thirds vote. It would require the president to submit a balanced budget each year. And it would allow Congress to waive the balanced budget requirement when there is a declaration of war. Amending the Constitution is more complicated than simply passing a law. Passing an amendment to the Constitution requires a two-thirds vote in each House. It is not submitted to the President for his signature. Instead, three-fourths of the state legislatures must approve it to be added to the Constitution. The only other way to amend the Constitution is to convene a Constitutional Convention at the request of two-thirds of the states. The convention method has never been used to amend the Constitution. Arguments for the Balanced Budget Amendment Advocates of a balanced budget amendment say  the federal government spends too much every year. They say that Congress has been unable to control spending without some kind of restraint and that, if spending is not controlled, our economy will suffer and our standard of living will drop. The federal government will continue to borrow until investors no longer will purchase bonds. The federal government will default and our economy will collapse. If Congress is required to balance the budget, it would figure out what programs are wasteful and would spend money more wisely, advocates say. â€Å"It’s simple math: The federal government should not be spending more taxpayer money that it brings in,† said Republican U.S. Sen. Grassley of Iowa, a longtime supporter of a balanced budget amendment.  Ã¢â‚¬Å"Almost every state has adopted some form of a balanced budget requirement, and it’s past time that the federal government follows suit.† Republican U.S. Sen. Mike Lee of Utah, a cosponsor with Grassley on a balanced budget amendment, added: Hardworking Americans have been forced to bear the burden of Congress’ inability and unwillingness to control federal overspending. As our federal debt continues to rise at an alarming rate, the least we can do is require the federal government to not spend more money than it has at its disposal.† Arguments Against a Balanced Budget Amendment Those opposed to a constitutional amendment say that it is too simplistic. Even with the amendment, balancing the budget will have to be done each year by legislation. This would require Congress to coordinate a large number of pieces of legislation – twelve appropriation bills, tax legislation, and any supplemental appropriations to name just a few of them. To balance the budget right now, Congress would have to eliminate many programs. In addition, when there is an economic downturn, the amount of taxes the federal government takes in usually drops. Spending often must be increased during those times or the economy can get worse. Under the balanced budget amendment, Congress would be unable to increase the needed spending. This is not a problem for states because they don’t control fiscal policy, but Congress needs the ability to stimulate the economy. By requiring a balanced budget every year, no matter the state of the economy, such an amendment would raise serious risks of tipping weak economies into recession and making recessions longer and deeper, causing very large job losses. That’s because the amendment would force policymakers to cut spending, raise taxes, or both just when the economy is weak or already in recession - the exact opposite of what good economic policy would advise, wrote Richard Kogan of the Center on Budget and Policy Priorities. Outlook Amending the Constitution is a rare and daunting task. It takes a great deal of time to adopt an amendment. The House may pass the constitutional amendment, but the outlook is much more uncertain in the Senate. If it passes there, it still needs to be ratified by three-fourths of the states. Because of the legitimate opposition to a balanced budget amendment among some economists and policymakers, Congress is unlikely to undertake the cumbersome process of even considering the amendment barring a significant debt crisis.

Finance Assessment Essay Example | Topics and Well Written Essays - 3250 words

Finance Assessment - Essay Example In this concept one stocks performance is benchmarked by the performance of another stock. The returns which will be generated are compared relatively to other stocks of similar nature operating in the markets (Gitman, 2003). The major difference between both the absolute and relative return is that absolute return is concerned about the returns which are generated from one particular asset or stock, whereas in relative return the stock is compared or benchmarked with the measures of other stocks. The most debated concept of Security Analysis and Portfolio Management is about the understanding whether a portfolio has been properly analyzed for the returns which the investors will get or understanding the relative performance of that particular stock in the markets (Deloitte, 2010). The investors need to redefine the definition of risk, how it is measured and how to deal with it and for this reason; investors create a portfolio of different stocks and securities. Alpha and Beta are th e tools used by the investors to assess their portfolios and measure whether or not their investments are generating the expected returns considering the risk they are taking. Assessing a portfolio in terms of both Alpha and Beta, the investor will have more control over the portfolio and he will maximize the returns by minimizing risk (Koba, 2012). The measurement of an investment on risk adjusted basis is called Alpha. Investors seek to minimize risk and increase returns (Loth, 2007). The stock prices are subject to volatility. The price risk associated to a portfolio determines the return expected by the investor. The additional return which an investor gets on a portfolio apart from the benchmark set is called Alpha. A negative Alpha of a portfolio shows underperformance (Faulkenberry, n.d.). Beta is a tool which is used to measure the volatility of risk associated to a portfolio as compared to the performance of the market. Regression analysis is used to calculate Beta. In othe r terms Beta is the propensity of investment return to respond to the market volatility. The lower the value of Beta, lesser will be the volatility of the stock with respect to the market. Both Alpha and Beta are popular tools used for the measurement of volatility. Alpha compares the asset returns on the investment to the risk adjusted expected returns whereas Beta is the movement of the asset along with the benchmark that has been set by the market. Alpha is very important for assessing the growth and the returns that are associated to the portfolio. It depends on the structure of the portfolio, the investor and the market which is being analyzed that which factor either the Beta or the Alpha will be critically significant for the investor (Seeking Alpha, 2011). With the varying school of thoughts the perceptions of the importance of Alpha or Beta vary. Alpha and Beta alone do not possess the potential to assess the risk instantly and adjust the portfolio for the returns. Alpha al one is not sufficient to assess the skills which are derived from the leverage of the portfolio. It is not suitable for a risk averse investor and may end up being a misleading performance measure for the investors. The value of Alpha itself is not sufficient for the assessment of the stock but it can be used if a benchmark of the portfolio is set. Beta does not possess this benefit. The direction of the market cannot be assessed by the benchmark Beta set for the portfolio. The use of Alpha and the speculations made by using it are very consistent. The

Financial Analysis for Kroger Co Research Paper

Financial Analysis for Kroger Co - Research Paper Example For an industry like Kroger’s, the most important factor for consumers is price. The products available in supermarkets are not differentiated and therefore they cannot be advertised heavily. Much of the advertisement that is done is carried out on the basis of attracting families to shop at Kroger because it is cost effective to do so. Apart from being cost effective Kroger also has products of high quality which makes it popular among American consumers. Kroger Co. has 42 manufacturing plants and including dairies, beverages and meat plants and all of these plants are of the highest standards. In the recent years there has been a tremendous increase in the fuel prices and the recent financial meltdown has made things worse for many industries including Kroger. The rise in fuel prices caused an increase in costs of the products sold by Kroger. Kroger is both a manufacturing company and a retail outlet and was therefore heavily affected by the increase in cost of fuel and othe r raw materials. According to Porter, there are 3 strategies a company can adopt to become competitive and Kroger has undertaken the â€Å"cost leadership† strategy which helps to differentiate it from the rest of the supermarket chains. The continuing increase in fuel prices will prevent Kroger from increasing costs and the strategy and it would be difficult to achieve goals. Kroger can shift to alternative sources of energy and reduce its costs that way. The recent financial meltdown meant that the demand for grocery products decreased to a large extent. In the past consumers would buy gourmet foods and other items from supermarkets but due to the credit crises that has decreased. Consumers have become more price conscious and buy only items that are necessary. Such a decrease in spending has affected the entire industry at large and profit margins have gone down since the past. In 2009 there was a 60.5% drop in consumer confidence index. (Zahorsky) Kroger has been taking a dvantage of the opportunities and developed its own brand called â€Å"Private Selection† and manufactures its own products under this brand name. Consumers often prefer branded products in place of national and Kroger has been successful in understanding this need. In 2009 Kroger earned around $1 billion in sales from this brand alone and the sales continue to grow today (Zahorsky). Such a step by Kroger would not only help the company but the industry as a whole. Liquidity Ratio Current ratio of Kroger Co. for the financial year 2012: = = 0.804 Current ratio for the year 2012= 0.804:1. The current ratio for the industry is around 0.8 which is the same as Kroger (Kroger Co. Ratios, 2012). The

New HIPAA Term Paper Example | Topics and Well Written Essays - 250 words

New HIPAA - Term Paper Example It is codified under Part 160 and subsections C, D and E of the Act document. Negligence and ignorance towards privacy and security standards under the HIPAA act accounts to civil penalty coming under general category and amounts to fines of up to $ 25K for all violations within a year. In case of willful negligence and wrongful misuse of patient’s healthcare information, it is considered as a criminal offense under HIPAA and both fines and imprisonment apply. The fine can reach up to the limit of $ 250 K and imprisonment of maximum 10 years or both (McGraw Hill n.d). HIPAA generates awareness amongst healthcare consumers regarding the safety of their private and confidential information and knowing about who is handling that information. With fast paced technological advancement in medical field, use of patient’s private information can be made in medical research, reproductive rights or developing any new medicine or treatment. In this regard, HIPAA mandates both the practitioners and patients of the importance of the healthcare information and its

Study plan finished version Essay Example for Free

Study plan finished version Essay I was born over 24 years ago in Guangzhou, China. After graduating from high school I then proceeded to East Los Angeles College where I got an Associate degree in Business Administration. I later moved to California State Polytechnic University Pomona where I got a B. S. degree in Finance in August 2007. After graduating from Cal Poly Pomona, I went back to my hometown Guangzhou. I’m presently working as a human resources assistant at XXX College, Guangzhou, China, where I help research and evaluated management practices, I also engaged in various training and development programs, leadership principles and employee relations. My human resource assistant job also made me responsible for recruiting procedures, screening of candidates, coordinating interviews. Reason for Pursuing a Master degree Most of my coworkers got master degree, except me and their English are great too, most passed English at sixth level exam in China. Sometimes, I receive headhunting company call about some positions which are meant for my supervisor in international companies. The headhunting calls are meant to request for information about my boss’s. I have realize that China is a place with a lot of talented people, they have higher education and also very smart. There is increase in competitions among our youth, Hence an advanced education is necessary for me to succeed in this ever dynamic world. Secondly, China’s economic growth is rapid these years. I found that Chinese Corporations have large size of accounting department, Operation Department, Technical Department and Marketing Department, but they do not have appropriate size of Human Resources Department. The status is totally different in US. When I was studying in US, I did a lot of research program about the large Corporation in US, I then discover that the director of human resources may supervise several departments, each headed by an experienced manager who most likely specializes in one human resources activity, such as employment and placement; compensation, and benefits; training and development; or labor relations. As the global marketplace and rapidly-evolving technology are creating a new and more competitive business environment, I believe that professional human resources management is an increasing vital area in China. Therefore I decided to get my master degree. Why US When I plan to further my education, there are many places I can choose. There are three places in my decision, Hong Kong, Australia and US. I made some comparison here: Advantage Disadvantage Hong Kong Nearly my family and I can meet and take care of my parents easily. HK university require high GPA, my GPA is low. Hong Kong’s mother language is Cantonese; it is not a good environment to improve English. Australia Easy to apply a University and get a visa there. Good English Environment. There is few National University in Australia. They follow British education system. And tuition is expensive. USA Most mature and advanced education. I got my bachelor degree in US; I adapt the US education system. The tuition is expensive and very hard to get a student visa. After prolonged meditation, and communication with my parents, I made a decision to go back to US get the master degree. Study Plan I plan to study Master Degree in Human resource Management at Golden Gate University which last for one and a half year. Because I understand that my low GPA in undergraduate has weaken my application. But I strongly believe that Golden Gate University has high quality graduate program for me, and reasonable tuition. They gave me the foundation and in-depth training, what I needed for the contemporary marketplace as a human resource or personnel manager. They have dynamic classes and laboratories where you discuss theory and practice from real-life situations and problems. The Master of Science degree in Human Resource Management requires completion of 33 units in the graduate program. Each course listed carries three semester units of credit. The foundation program I took in undergraduate University can be waived 6 units. I still have 27 units to finish. I plan to take 12 units each semester, therefore I think I can finish the program in one and a half year. Financial Supporter I started working a couple of months ago, I do not have enough money, but my mum will support my tuition. She is working at a famous, well paid company in China and also she is a superintendent, she has enough money to support my education. Also she believes now it is the best time to go out to further education, because she will retire in 5 years time. At that time if I need her support, she said she might not have enough money to give me. Returning After I accomplish my studies in US, I will go back to China. Personally, I am an extremely miss-home girl; I enjoy staying with my parents and family eating and drinking every week in Guangzhou. I remember when I was studying in US, I used to talk to my parents on the phone everyday. Furthermore, I believe in the developmental potentials of Human resource in China, after I graduated I think there are more opportunity waiting for me.

breaking away Essay -- essays research papers

The movie â€Å"Breaking Away† presents the story of a young man from working class origins who seeks to better himself by creating a persona through which he almost, but not quite, wins the girl. The rivalry between the townies and the college students sets the scene for the story of four friends who learn to accept themselves as they "break away" from childhood and from their underdog self-images. Dave Stoller, the main character, is a young man completely obsessed with cycling and Italy. His fantasies are so well fabricated that he drives his family crazy by behaving and speaking as if he were an Italian cyclist. Dave aspires to be one of the best cyclists yet the best racers are Italian. He feels that in order to be the best, he must be Italian. Dave carries his fantasy one step too far when he pretends to be an Italian exchange student in order to impress an attractive female college student. When he discovers that he actually likes her and confesses his charade, she ends the romance. This single act reveals to the audience that Dave is ashamed and embarrassed to tell Kat that the truth about his background; he obviously did not like who he was – a cutter. Dave felt that in order to win Kat he needed to pretend to be someone who he was not. However, his plan did not go over well causing him to lose Kat. Dave's father is a used-car salesman who disapproves of his son's Italian fantasies. Dave's father thinks his son is crazy, lazy, and that acting as if he were an ...

Food and Beverage Essay

* Food and Beverage service is the â€Å"food and beverage flow† (from the purchasing of the foods to service to the customer) mainly concerned with the delivery and presentation of the food to customer, after completion of the food production. * Sometimes, it involves transportation if there is a separation of production and service facilities. Beverage * French bevrage, from boivre (â€Å"to drink†), from Latin bibo . * It is also said to be derived from the Latin word ‘Bever’ meaning rest or repose from the work. * The term beverage refers to all kinds of potable drinks which have thirst quenching, refreshing, stimulating, and nourishing properties. * Any potable( drinkable) liquid can be termed as beverage which regulates the stomach system and balances the pH level. * Beverages are consumed mainly to quench thirst , compensate loss of body fluid due to perspiration, feel fresh and active, as rituals, during social gatherings, and during and after eating. * Broadly beverage can be classified into two ways; 1. Alcoholic Beverage 2. Non- Alcoholic Beverage What is Alcoholic Beverage? * Alcohol is a colorless, odorless and volatile liquid. * It is a potable liquid containing ethyl alcohol or ethanol(C2H5OH) of 0. 5 per cent more by volume. * The percentage of alcohol in a drink varies from 0. 5 to 95 per cent , depending upon the method of preparation. * Alcohol is obtained by fermenting a liquid containing sugar. * The word alcohol came from the Arabic word ‘ al-kohl’ which referred to any fine powder that was applied to essences obtained by distillation by the alchemists of medieval Europe. Fermentation is the process in which a liquid containing sugar is acted upon by yeast which converts the sugar into alcohol and gives off carbon dioxide. * E. g. Grape juice- Wine * Apple Juice- Cider * Pear Juice- Perry. * Distillation is the process of separating elements in a liquid by vaporization and condensation. * During the distillation process of alcoholic beverages, the alcohol which is present in the fermented liquid(alcoholic wash) is separated from water. * Spirits are the examples of distilled drinks and the plants producing the spirits are known as distilleries. * The following wash are responsible for particular spirits which are as following: * Brandy- fermented grape juice * Gin, Whisky- fermented cereals * Tequila- fermented sap of Agave Tequilana weber * Rum- fermented molasses * Vodka- fermented potatoes or cereal.