Recurring U.S. Government Spending and Debt Ceiling Crises Assignment

Recurring U.S. Government Spending and Debt Ceiling Crises - Assignment Example Increase in worsening of economic condition will result in further decline of the value of the US dollar. Question 3: The overall healthcare expenditure of the United States of America will increase by 6.1 percent due to Obama Care Act in 2014 and Morgan states that this estimate is lesser than the previous estimates of increase in government spending by 7.4% (Morgan 1). An increase of 6.1% will result in a total expenditure of $3 trillion on the healthcare system. Question 4: From the period of 2009 to 2013 the Medicare spending increased at an average of 0.02 trillion. During the period of 2009 it was 0.42 trillion and during the period of 2013 it was 049 trillion, while it fell from 0.48 trillion of 2011 to 0.47 trillion in 2012. It is expected that in 2014 it would rise to 0.52 trillion (usgovernmentspending.com 1). Question 5: The United States has budgeted that its overall government spending for the period of 2014 will be 3.7 trillion and this will include spending on pensions, health care, defense as well as welfare (usfederalbudget.us 1). In order to cover this budget of 3.7 trillion, the government has projected to collect a total of 3.0 trillion on tax revenues (usgovernmentrevenue.com 1). This means that a total of 0.7 trillion in tax revenues need to be increased to cover all government spending. Question 6: By the end of 2013 the United States’ federal government debt to GDP ratio was 101.6% and by the period of 2003 it was 59.5%. This means that the debt to GDP ratio of the United States Federal government has almost increased by 66% in 10 years time period which is quite an alarming situation (tradingeconomics.com 1). Question 7: The FED or Federal Reserve Bank of United States already owns 64% of the debt of United States government (Jeffrey 1). The FED owns this amount since it is purchasing government bonds in order to help the federal government to