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Introduction to national Debt
Introduction to national Debt
Introduction to national Debt
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The United States’ national debt is $18 trillion and increases $16,692 every second (“National”). This debt amounts to $56,704 per citizen (“National”). The government plans to spend $3.9 trillion in the year 2015 (“Federal”). This money comes from taxpayers. When the government does not raise enough revenue to cover their budget, the U.S. Treasury borrows more funds. The government creates many problems for the United States when they spend money that increases the national debt. The most important problem in the United States is the government’s financial spending. The government’s financial spending is the most important problem in the United States because it is the root of most problems in America. Many problems that America faces stem …show more content…
from how the government budgets and spends money. Government spending causes problems in the economy, the education system, and for the future of young people. One of the biggest issues that stems from how the government budgets and spends money is the bad economy.
The economy affects all Americans. Because our government spends money frivolously, our economy is bad. In the last 45 out of 50 years, the government’s expenses have exceeded the revenue (“Federal”). When this happens, the U.S. Treasury borrows more funds and makes the national debt increase. The government does not plan on limiting spending in the future: It’s clear that big money makes government less efficient. A tight operation on a strict budget watches its funds carefully; a lavishly funded agency goes in search of new missions and stops sweating over the small change, especially since the only way it can keep the money coming is by perpetually claiming to be underfunded. (Hayward) In this quote, the “lavishly funded agency” is the U.S. government. The government is well funded by taxes, so it is willing to spend more money. Thus, the debt increases. The government uses the fact that the national debt is extremely high to ask for more money and increase taxes. This is a vicious cycle where the government claims to be underfunded and only increases debt and takes money from Americans. Instead of increasing incomes or raising the minimum wage, the government taxes its citizens more. The government will only increase spending and cause more problems for Americans and for the …show more content…
economy. Increasing taxes to fund the government’s frivolous spending is an obvious sign that the government does not act in the best interest of Americans.
Congress’s duty is to promote the general welfare of Americans, but instead Congress promotes the general welfare of itself. Every year, billions of dollars are allocated towards projects that primarily benefit Congressmen. In 2010, about $16.5 billion were used in pork barrel spending (Investigating Answers). According to Investigating Answers, “[t]his type of spending is inserted into generally non-related bills as either an award or incentive for political support from constituents and cohorts. The Oxford English Dictionary distinguishes pork barrel spending from normal appropriation spending as ‘projects designed to please...and win votes.’” Politicians waste money on projects in order to gain support and votes. Some examples of these projects include $2.5 million in potato research, $4.8 million in wood utilization research, and $250,000 for a wireless network in a city with a population of 13,888 (Investigating Answers). The $16.5 billion used in pork barrel spending in 2010 could have been used to fund the national debt, increase incomes, improve roadways, or enhance the education system, but instead, the government is spending money on unsubstantial
projects. Some people might argue that the education system is the biggest problem in the United States instead of government spending. The teachers are underpaid, and the schools are understaffed. Since teachers are not paid enough, some either leave or do not work hard for their students. Also, there are not enough school supplies like desks and books. Further, some public schools do not have enough space for all of their students. Most importantly, the students are not getting the proper education that they need for a chance at being successful. Although these arguments are true, the education system is not the biggest problem. The government’s spending is the issue. If the government spent more money to fund the advancement of public schools and raise incomes for teachers, the education system would improve. In 2010, if Congress would have spent $16.5 billion towards the education system, the education system and the future of young people would have drastically improved. The government’s spending is the most important problem in the United States. The debt continues to only increase and cause more problems such as no economic growth, higher taxes, and lower incomes. Ultimately, “[g]overnment spending is a crisis, and not just because of taxation or debt” (Hayward). If the government allocated more funds towards the education system, the future of young people would ameliorate. Improving their future would only improve the future of the United States because the young people of today will be the leaders of tomorrow.
This deficit has to do with having responsible leader who are willing to increase awareness and make beneficial changes in the nation. In my opinion, the federal debt is a serious threat to the US that must be politically address whenever possible. I believe that the candidates of the 2016 presidential election should make this issue one of the top priorities to discuss and to dictate a considerable amount of work to fix it. That is because the worse the federal debt is, the worse the future would be to the nation. Also, voters must be well educated about this issue in order to shape their decision in voting for the candidate that seems most powerful and confident about this problem. Solving this problem may be difficult and would take time and so much effort. Therefore, the changes and solution must be on both a national and individual levels as
...hey are can cause national debt. This would lead to other countries to lose faith in the dollar resulting in loss or trade and investors. The dollar will be worth less and less if nation is in high debt. People will also be affected, when you have less money you spend and buy less due to increased prices which can causes problems in the economy such as a recession or worse a depression. Budget Deficit calls for the government to let cost exceed national income and use of monetary policy to jump start the economy. The government must be careful when choosing the best way to build the economy up. If the policies fail, they can lead the nation into many problems as stated above. This is why regulating money, trade, and the economy is an important part in government tasks. In the end, citizens want the best policy to promote the U.S. into a stabile and secure economy.
When you get to the point where debt becomes too much you begin to search for a way out. There are many different options to get rid of their debt; one option is the debt snowball. This debt relief option sounds more unusual than it really is.
The country needs to start monitoring how the government is spending the federal budget and they need to start splitting it fairly to benefit our country. 83% of the federal budget is spent on the Big Five which are the main expenses in the budget. We have to stop spending it all on the Big Five. Our government should really pay attention to what we need most of in this country and focus on the needs. The government needs to take away 20% of the Big Five and split it to categories that need it.
Every day in New York City, hundreds of people walk past a huge digital billboard with giant numbers across its face. Each person who walks past this billboard sees a slightly different arrangement of numbers, growing larger every second. This board is the National Debt Clock, representing the over 14 trillion dollars currently owed by the United States. While some people claim that the national debt is caused by the falling economy, most maintain that the debt itself causes the poor economy (Budget Deficits 2007). Rising debt leads to higher interest and investment rates, and cuts into our national savings. Ignoring the national debt leaves the major burden of paying it off to later generations, while meanwhile allowing our country’s economy to further drop and our dependency on other nations to rise.
In general, an increase in government spending and decrease in the collection of government taxes and other receipts, increases the debt held by the local government. Government taxes and receipts fluctuate annually, and are frequently less than government spending. In the past, the U.S. public debt has increased for the duration of wars and recessions. When the government consumes more than what it accumulates in taxes, there is a budget deficit and the government then borrows from the private sector or from foreign governments to protect their spending. The compilation of historical borrowing is what materializes the government debt.
The U.S budget deficit over the years has been a problem but lately the deficit has shrunk. However, what made the U.S budget deficit get to where it is today and what will it be like in the years to come. Throughout the past the U.S has operated under a deficit. This means that the U.S Spent more money than it was taking in. The cause of the excess in spending was different depending on which year. Some of the causes were war, increase in spending , and economic downturns. There were different acts passed to try and control the deficit problem. The deficit at the present time is declining. This decline is due to the improving economy, sequester, and a tax increase on high-income households. The big factor that went into the decline in the deficit for 2013 was the payment that Fannie Mae and Freddie Mac made. The deficit decline in the present time may make some think the U.S could get out of debt but it has been projected that the U.S deficit will start to increase once again.
As stated by Akst, today’s debts are a significant problem. It’s accumulated to a total over ten trillion, peaking in U.S.’s history. Excessive spending done by both, the U.S. government and its citizens, produced such a massive debt. A simple solution to this ordeal is thrift, the state of saving and using money
Thomas Jefferson once stated, "I place economy among the first and most important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt" (Bussing-Burks, 7). A lot has changed since Jefferson was President two hundred years ago, but the need to be financially solvent is something that will always be necessary for the United States to maintain its leadership position in the world. The United States of America currently owes $16.7 trillion in debt primarily as a result of the government’s spending practices during the last ten years. Two wars, several fiscal collapses, the bursting of the bubble in the housing market, looming medical care costs from an expanded healthcare access law, and a recession may be the scapegoats, but the real issue is fiscal irresponsibility by the parties in power (Hiber, 76). One idea that has been discussed not only in Congress, but also on prime time news networks is the passage of a Balanced Budget Amendment, which would require that Congress balances the country’s budget every fiscal year (American Government, 1). A Balanced Budget Amendment could provide an exception for times of war, national emergency, or recession, or allow the legislature to suspend the rule by a supermajority vote (Lee, 2). A balanced budget is critical because budget deficits can only be funded by additional increases in the level of the national debt, which can place an undue burden on future generations to repay such debt, create annual interest costs that consume an increasing portion of tax revenues and crowd out spending on current programs, and result in potential reliance on other countries in order to make financial ends meet.
“Blessed are the young for they shall inherit the national debt” (Hoover). This is a quote from Herbert Hoover, 31st president of the United States. What the quote is saying is that the debt the country is building up at that time, will be dragged down to today causing problems. A national debt is when a country is borrowing more money than they are making and this has been the problem in the U.S since the founding of our country. This seems to be a problem for us, it seems that we want to spend, and spend, and spend, more money than we can make to achieve something or to satisfy our own needs. This is screwing us over in the long run, causing us to slowly mess up or country's economy. Over the growth of our country the debt has decreased and
An article written by Daniel L Thornton states the United States has currently surpassed 100 percent of its gross domestic product. A significant amount of this debt is the result of the government’s effort to decrease the effects of the financial crisis. Until recently, large economic deficits have been linked to historic wars: War of 1812, the Civil War, World Wars I and II. The only historic peace-time economic deficit occurred during the Great Depression, when the deficit hit a peak of 6.6% of Gross Domestic Product (Thornton, 2012). In comparison, the deficits for 2009, 2010, and 2011 are all 8.9% or larger, far more than the previously largest single-year peace-time deficit. After each of these periods of large deficits, the budget ran
A government can only be as successful as the people whom it governs. The measure of its success is seen through the quality of life enjoyed by the population, which is obtained with a well balanced budget. This budget is entirely funded by the taxes imposed on the population, which is then allocated to various departments and programs. It goes without saying that the manner in which the government spends its money carries a large influence over the economy, both in the short-term and in the long-term. Although government spending has the potential to stimulate the economy, this essay will explain why the opposite outcome is more likely to result in the short-term. It will be shown, by analyzing the flow of money and the economies of certain countries, that government spending has little economic benefit and does not create new jobs. Nonetheless, in the right circumstances, government spending can prove beneficial to the long-term economic growth of a country.
The basic issue of the misprioritization and misutilization of the national budget clearly represents that the business of governance depends on the interests of the power holders rather than the people they govern. The coming of the public debt aspect in the 80s worsens the misprioritization of government's annual budget in favor of foreign debt payment allocations and is usually followed by t he national defense budget, the sum of which account for about three-fourths (3/4) of its grand total.
Government spending is all the consumption, investment, and transfer payments that our government has funded over a certain period of time. (Merriam-Webster) The United States government spends more money total than any other nation. They spend it in areas such as the military, environmental preservation, natural disaster relief, education and transportation. The US government spends all this money into trying to make a difference. (@Natpriorities)
"The government has no source of revenue, except the taxes paid by the producers. To free itself - for a while - from the limits set by reality, the government initiates a credit con game on a scale which the private manipulator could not dream of. It borrows money from you today, which is to be repaid with money it will borrow from you tomorrow, which is to be repaid with money it will borrow from you day after tomorrow, and so on. This is known as 'deficit financing.'" -Ayn Rand