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Obama suggests US can reduce deficit by closing tax loopholes. Deficit is when expenses exceed income. This will allow the US to fund things for the economy's growth without having to raise tax. Obama also says that he wants a fair and transparent tax system and further health care reforms. He says that since US spends a lot, they need additional revenue and also smart spending reductions. This relates to cash inflow and outflow of the economy. US have been dealing will the excess of outgoing money over the incoming money. This becomes public debt for the national. This could possibly slow the the efficiency of how the government can support different sector of the country, such as the economy.

President Obama visited the University of Michigan and outlined a new plan aimed at limiting tuition increases at U.S. universities.A key reason for high rates of tuition increase, is simply that the supply of freshman slots hasn't kept up with demand and such shortages lead to price increases.Top universities should focus on increasing the number of students they admit and all who care about expanding opportunities should pressure boards and presidents to spend some of the money on opening up more spots in the classes.

Barack Obama is convening his advisory council on International trade as he outlines his agressive goals in doubling USA's exports. This fits into week 36's lesson quite nicely as we are learning about the Basics of International Trade and how it may be beneficial for nations. To double a country's exports would be very difficult but we will see how Obama does over the next year or so!

President Obama announced new steps to help unemployed Americans on Friday, targeting people who are out of work and want to go back to school. The president outlined a plan under which the Department of Education will send colleges legal guidance, encouraging them to increase financial aid packages for the unemployed so they can enroll in educational and training programs while keeping their unemployment benefits.

This article talks about how the US government wants to take some reforms on health care with an ambitious plan made by the president Obama and the rest of the Democrats, the plan is that by imposing an excise tax on expensive health insurances enough revenue would be collected to provide the poorer with health insurances, unfortunely for Obama and the Democrats many people are against this reform, one of them saying that; "it would set the middle class against the poor - people struggling to keep health insurance against people struggling to get it." As many people in the congress are against this Congressional Democrats are looking for a better way to get the revenue needed in order to take this ambitious plan ahead.

Barack Obama promised to his voters to shake up a medical care system, i.e. his new law will no longer let insurance companies to refuse to cover an individual because he is not healthy, or to charge him an exorbitant fee. That new policy will lead to a great change in the decision-making of the employers. Firstful, today it is more benificial for employers to not provide medical care, and just to increase wages. If during the days of the WW II it was easier to provide health care instead of incresing the wages, because of the lower prices for insurance, but during last decade it became totally oppostie. But, Mr. Obama definitely doesn't want staff of the companies be dumped on his healthcare exchanges, so there is a fine of $2000 for each employe if there is more than 50 employees.

In this article author talks about the economical influence of immigrant, the burden they bring to the taxpayers and the way one of the leading economists Gordon Haston proposes to solve that problem. So the Haston's idea is to impose taxes on employer for hiring immigrants, thus burden would be on employers and it would ease up the political opposition for immigration, and regular people's taxes will be lower. But in this way the employment of low-skilled immigrants is generating an externality, and that the employer who make up one side of these exchanges are not internalizing the cost of this externality. So the question is who's supposed to pay for immigrants? That question causes the huge discussions in political life of countries, especially this year during the election in US. A lot of people were arguing whether they choose Barack Obama who helps poor people, or to decrease the amount of money they get and choose Romney. It's an important question for any family that pays tax, so I choose that article.

This article is about the Tea Party supporters who sprang into action in the United States last year. They demand to block the democratic agenda on the economy and also the environment and health care. Tea Party supporters are Republicans and believe President Obama and the Democrats to be 'far too liberal'. These supporters are strongly backed up by Republican politicians, Sarah Palin in particular. One of the major issues that the tea party argues is the misuse of economic resources in health care. They feel that all the health care opportunities are targeted towards the poor section of the country, not the middle or rich class. However since the latter are tax payers, the health benefits should be more focused on them. Thus in this situation a political party has a direct influence on the economic policies taken in a country.

Currently the Obama administration is talking about finding new ways to create jobs and stimulate growth. However, it has proved to be unsuccessful, as the only policy that will really help is an increase in aggregate demand. The article explains that aggregate demand simply means spending: "spending by households, businesses and governments for consumption goods and services or investments in structures, machinery and equipment." At the moment, businesses should not to invest because there is lack of consumer demand. The federal government could increase aggregate spending by directly employing workers or undertaking public works projects yet this proves to be difficult. The author explains that the most important thing is for policy makers to stop focusing on debt and attempt instead to raise aggregate demand.

THis article talks about how the recession has effected America and what America really needs is an increase in aggregate demand. That is the increase in consumption, investments, exports etc. They say that a direct solution to increase aggregate demand would be an increase in aggregate spending by employing citizens in public projects controlled by the government and if that isnt enough then its all up to the citizens. It then talks about how consumer confidence significantly effects spending. that is if house holds feel that they are rich, then they dont feel the need to save and as a result of that they spend the money they were going to spend and vice versa.

United States proposed a Trans Pacific Partnership (TPP) with a goal of reaching a deal by year-end. The U.S. aims to discuss the trade deal with other nations during the World Trade Organization meeting. The TPP talks aim to establish a free-trade bloc that covers 800 million people, a third of world trade and accounting for 40 percent of the global economy. The goal is to promote remove trade protectionisms and also set standard for workers' rights, environmental protection and intellectual property rights. This article can be related to our topic this week as it involves trade protectionism. This TTP deal argues against protectionism measures as they believe the removal of protectionism will promote growth. For instance, Obama believes that more export will provide more U.S. jobs. On the other hand, opponents against the deal state that the deal will only provide multinational corporations powers against national policies in the name of free trade.