Approximately two weeks ago, the House passed a bill with the motive to help unemployed Veterans find work, and also to redefine the qualifications for who is eligible for federal help under new health care reforms. Essentially, the bill was passed to stimulate the business cycle and reduce the economy. Tien thoroughly explains the potentials of the bill, and why she agrees with the House that the bill will do more good than harm and will in fact stimulate our deteriorating economy. However, I disagree with a lot of what this bill has to offer.
In my opinion, the economy’s two main detriments are its unemployment rate, and the amount of government debt. This bill provides jobs for unemployed veterans by providing employers with tax credits. When an employer receives a tax credit, it reduces the amount of taxes being paid to the government, causing a chain effect that eventually results in government debt increasing. While providing tax credit for employers, the bill also states that it will provide education for veterans in order for them to become more qualified for various positions. Who is ultimately going to pay for this education? The government will be spending more money providing education and job retraining programs, and again will increase government debt.
Currently, there is a very large amount of frustration throughout the United States regarding unemployed students whom have received college degrees and even secondary college degrees. These unemployed students are obviously already well-trained and qualify for many positions in our business cycle that are just not available right now. Not only will this bill proposition result in more government spending, but it will reach an even more unemployment rate for students. I respect veterans tremendously, and do agree that something needs to be done to help for a lesser unemployment rate, but this isn’t a good way to do this. I’m not exactly sure how the government could provide jobs for these vets without increasing their amount of debt, but they need to primarily worry about government spending over anything else. As for the other half of the bill, which explains that the government will redefine eligibility for federal help under health care reforms, I do agree with Tien that this will help decrease the federal debt deficit, and will make a lot of tax payers happy. Health care is one of the many assets that cause for so much government debt, due to the amount of money the government supplies for these reforms. I think that this part of the Bill will inevitably help the economy and reduce the government debt, while reducing the amount of angry tax payers that have to pay taxes for all of this health care. When reducing eligibility, the government is able to use this money for something else that could quite possibly be more detrimental right now than people with health care.
I do strongly wish for the government to somehow reduce the number of unemployed vets, and provide health care for people who are not financially stable. However, I only agree with the second half of this bill. The United States has the largest amount of debt in the world, and anything that we do to worsen this debt is not going to help the economy. More government spending and less tax collecting might help the veterans and the economy temporarily. But in the long run, it’ll cause the same problems (maybe not as crucial) as when the government was providing financial support for banks when the housing market crashed in 2008. The economy and the government will benefit, however, from the regulation of eligibility for financial support from health care reforms. http://money.cnn.com/2011/11/16/news/economy/unemployed_veterans/index.htm?iid=SF_E_Lead
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