The growing national deficit is a looming problem in the United States now more than ever. The national debt is constantly increasing and government spending is out of control. If these issues are not solved then they could spell disaster for the nation’s economy when the infamous debt ceiling is finally reached. Currently the national policy on the debt is to continue raising the debt limit until a solution is found that is agreeable between both parties in Congress. The two main issues of over spending and the constant raising of the debts ceiling by Congress can both be resolved by government spending reform, balancing the federal budget and initiating pro-growth policies in order to increase the government’s tax revenue.
The debt ceiling is a term that holds a lot power and is currently controlling the financial state of the United States government. Primarily because it is the limit on how much money the government can borrow before it must shut down and begin paying off its debts forcing Congress to work out a solution to the debt problem (Sahadi, 2013). The primary issue with this problem is that Congress continues to raise the debt ceiling pushing back the inevitable judgment day that will come when the United States can no longer borrow money and not have enough funds to pay for its budget. The current debt ceiling is set to hit on February 8, 2014 after which the treasury will not be able to borrow anymore money to make its obligated payments (Everett, 2013). It would be an advisable move to not raise the debt ceiling past its $17 trillion dollar mark, forcing Congress to create a solution to the financial issues that are facing the country. Currently 70% of voters are dissatisfied with the current state of the nation’s...
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...nding trends in graphics, tables, and key points. Retrieved from http://www.heritage.org/research/reports/2013/08/federal-spending-by-the-numbers-2013
Everett, B. (2013). Debt ceiling deadline pushed back.Politico, 1(1), 1. Retrieved from http://www.politico.com/story/2013/11/debt-ceiling-deadline-100155.html
Goff, E. (2012, October 16). Top 10 examples of wasteful federal spending in 2012. Retrieved from http://blog.heritage.org/2012/10/16/top-10-examples-of-wasteful-federal-spending-in-2012/
Sahadi, J. (2013). Cbo: Real debt ceiling deadline could hit in march. CNN Money, 1(1), 1. Retrieved from http://money.cnn.com/2013/11/20/news/economy/debt-ceiling/
Sargent, M. (2013, November 13). Debt: Seven out of 10 voters think the u.s. is on the wrong track. Retrieved from http://blog.heritage.org/2013/11/13/debt-seven-out-of-10-voters-think-the-u-s-is-on-the-wrong-track/
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
Washington next urged Americans to be overly mindful of the spending and borrowing of national monies. He relates this by declaring “As a very important source of strength and security, cherish public credit” (Washington, 1796). He cautions that credit should be used sparingly and not to accumulate debt that will be a burden to posterity. He also sympathizes that taxes, though necessary to build revenue, should not be
United States Department Of Veterans Affairs (2012, February 9). The GI BILL's History. Retrieved February 12, 2012, from http://www.gibill.va.gov/benefits/history_timeline/index.html
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.
However the interest we pay on our nation 's debt is very small compared to the overall budget. According to the Center on Budget and Policy Priorities only 7% of the total budget is spent on interest which is relatively low compared to things like social security which took up 24% of the budget in 2014 (Policy Basics). As long as the United States can continue to keep the interest rates low the debt will continue to be a begin threat. If the creditors of the U.S. were to spike their interest rates, America would be in trouble, however America has fairly good credit, and it should remain that way unless there is another scare like the government shutdown in 2011 (Riley). Overall the threat of the nation debt is a very minute problem in the grand scheme of things. According to The Richest, only five nations in the entire world are completely debt free, which is astounding when you consider that there are about 195 countries in the entire world (Mathers; How Many). These figures show how extremely difficult it is for a country to run without having a certain amount of debt, and America having debt should not be a concern. America is not even in the top ten countries whose debt make up the majority of their GDP (Country List). Which means that at the moment American’s should not be overly
Silverleib, Alan. “House Rejects Debt Ceiling Increase, 318-97.” CNN Politics. CNN, 31 May 2011. Web. 6 June 2011. .
The national debt is usually a frightening topic citizens of any country, however, in the United States, twenty trillion dollars of national debt is one of the major fears of the economy. Along with this fear comes every politician claiming to be the person to lower this astronomical debt to ease concerns in the modern American economy. In Hamilton’s Blessing, John Steele Gordon tries to alleviate these concerns by showing a plethora of benefits and good the debt has been able to do throughout the history of the United States. The central premise of the book and the main guideline for John Steele Gordon’s thinking is that the debt was used to save the Union in the 1860’s, the American economy in the 1930’s, and the wellbeing of mankind during
"U.S. National Debt Clock : Real Time." U.S. National Debt Clock : Real Time. N.p., n.d. Web. 4 May 2014.
Deficit spending happens when a government grows its debt, meaning that its spending is greater than its income. (Deficit Spending, 2008) Deficit spending is a fiscal policy, that when used appropriately can do some amazing things, like pull the United States up from its bootstraps effectively ending The Great Depression. President Hoover increased government spending by 50% and used the money to fund public works and infrastructure projects from 1928 to 1932. (Deficit Spending, 2008)
Throughout the years the U.S has had more budget deficits than it has had surpluses. This is due to the excess in spending and not enough revenues to pay for it. Many have debated over the U.S budget deficit problem. However to fix the problem one has to research the past to figure out how the U.S budget deficit got to where it is now. Hopefully by figuring out this, one could project what the U.S budget deficit will look like in years to come.
The United States economy is racing ahead at dangerous speeds, and it may be too late to prevent the return of widespread inflation. Ideally the economy should move ahead gradually and grow at a steady manageable rate. Mae West once stated “Too much of a good thing can be wonderful” and it seems the U.S. Treasury Secretary agrees. The Secretary announced that due to our increasing surplus and booming economy, instead of having an outsized tax cut, we should use the surplus to further pay down the national debt. A tax cut, though most Americans would favor it initially, would prove counter productive. Cutting taxes would over stimulate an already raging economy, and enhance the possibilities of an increase in the rate of inflation. Paying off the national debt would actually help lower interest rates and boost investments, and therefore further increase the wealth of the population, while keeping inflation at bay.
When we talk about a debt limit, most people think of their credit card limit. The limit is set so you cannot overspend. It is the opposite when referring to the nation's debt limit, it is suppose to allow more borrowing power to the government (Przybyla). Currently, the nation's debt is "$16.7 trillion" (Przybyla). The recent government shutdown was because Republicans did not want to increase the debt ceiling (Przybyla). The fear of our country being downgraded for not paying our debts was a huge concern and both parties were urged to come to an agreement (Przybyla). The Democrats and President Obama would not negotiate so the Republicans conceded to a point, only temporarily extending the budget and the debt limit (Przybyla). What are the positions of the Democrats and the Republicans on the debt limit, and which side do you mostly agree with?
Smith, J. (2013, april 23). The Best and Worst Jobs for 2013. Retrieved october 23, 2013, from Forbes: http://www.forbes.com/sites/jacquelynsmith/2013/04/23/the-best-and-worst-jobs-for-2013/2/
Koba, M. (2011, November 3). Gross Domestic Product: CNBC Explains. Retrieved from CNBC: EXPLAINS: http://www.cnbc.com/id/44505017
Veldhuis, Neil. “Beyond our means: Government debt tops $1.2-trillion and spending is still rising.” Financial Post. National Post, 16 May 2013. Web. 23 Feb. 2014.