5.2.4 Supervisão

Que procedimento é seguido para alocar fundos? Nos Estados Unidos, o Federal Reserve recebeu autoridade monetária e o Congresso recebeu autoridade fiscal. Em outras palavras, ambas as partes possuem a capacidade de produzir e destruir moeda, cada uma de maneira diferente. O Congresso tem o poder de gerar e eliminar dinheiro por meio de impostos e gastos federais. O Federal Reserve tem autoridade para comprar títulos para reduzir a dívida, emitir títulos do tesouro e determinar as taxas de juros para esses títulos e outras reservas.

This division shows which budgetary programs under the control of Congress are mandatory and which are optional. It is required to pay for Social Security, Medicare, and college loans   On the other hand, defense and bailout plans are optional. One benefit of required spending is that, unlike expenditures, which is frequently delayed by protracted debates, it typically doesn’t require authorization and can therefore be more responsive to changing demands.

Given that the seat of government is typically held by a wealthy elite, neither of these systems can be properly labeled as “democratic” and are instead better categorized as plutocracies. There are numerous strategies for managing financial resources. Participatory budgeting is one of them. This strategy encourages the growth of people by having an informed populace participate in a supported budgetary process together.