Budget Crisis: Who Should Bear the Burden of Reducing the Deficit and Debt?

內容大綱
By 2011, many nations had experienced an escalation in deficits and debt. It appeared that some might be unable to service their debt, and might have to default. The United States had a budget crisis in which “left-wing liberal” Democrats wanted to raise taxes on the wealthy while “right-wing conservative” Republicans wanted to cut expenditures. A philosophical divide existed over the role of personal responsibility versus the role of government. In the European Union, the “PIIGS” — Portugal, Italy, Ireland, Greece, and Spain — seemed on the verge of default, and other members of the eurozone created new loan programs to assist them in their budget crises. However, these loans included a requirement to move towards balanced budgets. Citizens in the borrowing nations objected to the severe tax increases and expenditure cuts, while citizens of the successful nations asked why they should have to pay. It was not clear who would bear the burden of reducing the deficits and debt.
學習目標
This case helps students understand the likely differences in outcomes between the United States and other nations in the budget debates; the ways in which the outcomes of the budget debates could affect businesses; and the Republican and Democratic fiscal positions in the United States.
涵蓋主題
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