Essay: Fiscal Decisions

Sample Essay

The article has cited fiscal decisions that are affecting this budget. The first factor is the aging population that increases in size annually. This is also coupled with the rise in the cost of healthcare. This will increase the cost healthcare spending as the nation’s takes on new reforms within the health care system. He proposes that the government should control spending.

Bernanke, therefore, takes on a Keynesian view. However, it will be difficult since governments cannot control public expenditure, especially when faced with loose fiscal policies. It cannot also distribute capital as well as invest it profitably and efficiently.

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