Discussion 3: Mandatory Spending

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Discussion 3: Mandatory Spending

If 60% of the state budget is mandatory spending, 40 percent of the federal budget is left to be cut out. The money will be split between interest and discretionary programs on the national debt. The majority of discretionary budgets go toward maintaining government operations, including federal programs that need funding from the government. Education, transportation, government employees, and salaries are all examples of discretionary spending programs. Those who hold government bonds, like Treasury Bills and savings, receive interest payments from the government regularly.

On the other hand, entitlement programs that require mandatory spending are funded at any level necessary to offset the costs that will inevitably arise. Social Security, Medicaid, Medicare, and defense are among the economic goals supported by mandatory spending programs that help to ensure American families’ stability (Greenstein, 2022). Mandatory spending by the law has significantly contributed to key fiscal trends. Besides, mandatory spending is crucial since it allows the government to intervene quickly and cheaply during economic downturns, hastening the pace of recovery.

In my opinion, no program should be cut or abolished in mandatory and discretionary spending. According to Phaup (2019), mandatory spending on Medicare and Social Security should account for the majority of required government spending, and thus the government should expand its spending rates. Due to an increase in disease susceptibility, the government ought to increase the amount of money it invests in the healthcare industry to guarantee high-quality health services, prompt responses, and comprehensive follow-up programs. These programs have also brought down the cost of healthcare, making it easier for people to get the medical attention they need.

References

Greenstein, R. (2022). Targeting, Universalism, and Other Factors Affecting Social Programs’ Political Strength. The Hamilton Project, Brookings Institution, Washington, DC.

Phaup, M. (2019). Budgeting for mandatory spending: Prologue to reform. Public Budgeting & Finance, 39(1), 24-44.

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