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Surplus Deficits

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Surplus Deficits

ECO/372

September 10, 2010

Surplus Deficits

A surplus in this economy can be beneficial to many businesses and as a whole society as well. A surplus benefits out society when producers and consumers sell their goods or services to the public. It is known that economic surplus is made up of two parts which are producers and consumer surplus. The producer surplus is the benefit that it receives from doing their service to the public at whatever the market price is at that time, rather than selling their services at a much cheaper rate. A consumer surplus is very different and opposite of that of a producer surplus. A consumer surplus is the benefit that it receives from purchasing their services from the public where they would be willing to pay more for the service they purchased. A government budget surplus can be very beneficial to the economy. A government budget surplus can be beneficial in that it gains revenue through taxes and other fees associated with the surplus. A budget surplus does have its effect on the economy in how the government officials use their funds. Two periods in time that comes to mind where the United States had to run their budget surpluses is the War in Iraq from 2003 to 2011, and the September 11th, 2001 attacks in New York at the World Trade Center. According to “A History of Surpluses and Deficits in the United States” (2012), “there were 127.3 billion surplus during the 2001 September 11th attacks on the World Trade Center with an inflation adjustment of 164.9 billion.” This was due to the devastating mess that it created which they had to spend to clean up after the events. The War on Iraq and Afghanistan from 2003 to 2011 brought big spending to the United States.…...

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