Taxes Case
The United States take its reputation very serious on an international level. When the U.S. runs a surplus other countries are more than willing to business with the United States. When the United States runs a very high deficit other countries are a little skeptical about doing business with the United State. When the deficit is high the value of the dollar is less.
A domestic automotive manufacturing (exporter)
The trade debit and venture excess are unwavering varies depending on individuals who desire to import, export and spend. When imports are less than exports imports, the United States has a trade deficit. If exports are greater than imports, then the United Sates would have a balance trade surplus. The exchange rate is higher or lowered depending on the interest rate at the time of exchange. When the United States currency is lowered, overseas goods turn out to be cheaper and United States goods turn out to be more money. A domestic automotive manufacturing (exporter) like to send out more car she that he/she would run a surplus
Future Social Security and Medicare users Deficit could lead to government use of these trust funds to service debt or other recurring expenses e.g. security this is because monies from this funds experience surplus often. Surplus on the other hand would mean that more funds to support this trusts would be available. This is because national savings would be healthy. (Bivens, 2004). Debt in theory debt, social security & Medicare funds don’t affect each other, the reason for this is because social funds have their own funding scheme that’s not tied to other federal bodies (Mankiw, 2011)
Unemployed individuals in times of Deficit the rate of unemployment is likely to increase as companies will lay off stuff because of slow demand. Surplus cost of living goes down as goods and services are easily acquired the economy is flush with money from excess revenue collected.