Major Debates Over Macroeconomic PolicySelect two subjects from the following list of topics and...

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Major Debates Over Macroeconomic PolicySelect two subjects from the following list of topics and write a 1,050-word analysis:   1. Reducing federal government's  discretionary powers  2. Tax incentives for saving  Evaluate both the advocates' position and the critics' position. Determine which position you support and defend your position. Cite a minimum of three peer-reviewed sources not including your textbook.

Robert · Accepted Answer

1 
 
Federal government’s discretionary powers refer to the permissible authorities of the 
administration and legal officials of the government which are less binding. The grant of 
discretionary powers to the authorities is done by delegating the federal power to the officials 
through the statute transfer. Therefore, in case of discretionary powers, there is no obligation 
over exercising of these powers by the decision makers to use them in a specified manner 
only. Generally, the exercise of the given discretionary powers is done by these agencies of 
the administration in a reasonable and impartial manner so that there is no oppression or any 
injury to the existing operations of the federal government. 
In case of reduction of the discretionary powers of federal government, there will be less 
impact over the aggregate demand in the economy through government spending. Moreover, 
it will hamper the critical decision making of the administration as they have experience and 
also possess specialization in such financial areas or economic policy making. The tolls 
which are used by the government under the discretionary fiscal policy are the tax code and 
the budget process. The discretionary portion of the U.S budget is the budget process. 
Therefore, if there is reduction in this portion of the U.S. budget discretionary power, 
Congress will not be able to determine the spending type under Federal budget process and 
there will be no appropriation of the bills during each year. The advocates of reducing the 
discretionary federal powers are of the view that it will reduce the unnecessary government 
spending over military budget which includes federal budget process and thereby the overall 
budget deficit can be reduced by the federal government. However, the reduction of 
discretionary powers of the federal government will have no impact over the mandatory 
spending such as that of Medicare, Medicaid, social security funds and expenditure of 
payment of interest rates on the debt of the government departments. Even if discretionary 
powers of federal government get reduced, it will not have any impact over the mandatory 
expenditures of the government (Grey, April 1979).

Major Debates Over Macroeconomic Policy Select two subjects from the following list of topics and write a 1,050-word analysis: 1. Reducing federal government's discretionary powers 2. Tax incentives...

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