ECON 2105 Lecture Notes - Lecture 19: Gross Domestic Product, Tax Rate, Social Security Trust Fund
Document Summary
Government budgets: budget deficit: government spends more than it takes in, budget surplus: government spends less than it takes in, government outlays = government spending + transfer payments, government spending: the components of g in gross domestic product. Examples: roads, bridges, government worker salaries: transfer payments: payments made to individuals when no good or service is received in return. Determined by ongoing programs such as social security and. Cannot be altered during the budget process. Altering requires long-run changes to existing laws: discretionary outlays. Can be altered when the annual budget is set. Bridges, roads, payments to government workers, defense spending. It is a government-administered retirement program which was set up in. 1935 by fdr as part of the new deal. It requires workers to contribute a portion of their earnings to the social security trust fund. It guarantees that no american worker retires without at least some retirement income.
