Evaluating Economic Growth: Methods And Implications

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Evaluating Economic Growth: Methods and Implications Who do the two animals holding the papers represent? The animal holding the papers represent the democrats and republicans . What are they looking at? They are looking at the money in the treasury. What are the two animals deciding? The two animals are deciding on how to spend the surplus or “delusional money". Since, in reality there is no surplus ; the money is obtained by selling bonds which is debt or by printing money which is inflationary. How do the two animals differ on how the surplus should be spent? Democrats want to use it for government controlled welfare programs while republicans want to give it back to the people in the form of a tax cut. How is the national debt represented in the cartoon? National debt is represented by a big guy on the side with a T - shirt that says national debt . Why do some economists consider the national debt a problem? The problem with national debt is that it reduces the money available for business to invest, as most of the people invest money on government bonds than on private business. The other problem is that the more the amount of debt more the government has to pay the interest which can be used in other productive areas. What else does the cartoonist imply Congress might do with the surplus? Cartoonist implies that congress might pay off the national debt. Since, increasing debt is not good for economy.
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