Compare and Contrast the Following Two Proposals to Deal with a Federal

Essay

Compare and contrast the following two proposals to deal with a federal budget surplus in an economy that is operating at full employment. Proposal #1 would require that significant portions of the surplus be returned to the public in the form of tax cuts. Proposal #2 would require that an equal portion instead be impounded to augment the Social Security Trust Fund. Make sure to point out the effect that each may have on inflation.