The Deficit: A Growing Problem
One of the most contentious topics for debate today in the nation is the issue of deficit reduction and budget reform. Everyone agrees that it is an issue that needs to be addressed, but that is where any agreement ends. Budgetary policy has long been viewed critically by the public, and has in recent years become a source of major discord in Congress. Both Republicans and Democrats have their own ideas on how to deal with the issue, as they see the budget and the deficit through their own ideological lenses. With the total public debt currently at $17 trillion, action needs to be taken on the budget for varying reasons, such as the threat it poses not only to national security but the economic security of the nation as well (Dinan, 2013).
Many feel that the greatest threat that the deficit poses is the chance of a governmental default, which would keep the government from paying its bills. Because of the requirement for a debt limit that Congress has placed on federal borrowing power, the limit must be raised when the limit is reached, or a default will occur. Highlighting the growing debt issue throughout the years is the fact that Congress has raised the limit more than 90 times since the 1940’s (Policy Basics, 2013). In the event the U.S. could not pay its bills, national security would be compromised as there would be no money to run the military and the vital operations that protect the country from threats, and millions of the nation’s most vulnerable citizens would be devastated. The official poverty rate of 2012 was 15 percent. That means that there were 46.5 million people in poverty (DeNavas-Walt, Proctor, & Smith, 2013). Those people, many families with children, would be cut off from v...
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...defense spending is to think about the fact that countries such as Norway and Sweden spend far less than us on defense as a percentage of GDP and have enjoyed relatively stable budgets, as well as a good quality of life for many of its citizens (CIA World Fact Book, 2012).
Overall, though, I believe that we are going to need to see massive amounts of compromise on both sides in order for any sort of progress to be made. I think that it is unlikely that we will see this compromise in the next few years, and I am concerned that it will take a major crisis in order for both parties to begin to work together. I think, though, if Democrats can agree to some spending cuts, or at least plans to reduce over time, and the Republicans agree to tax increases for some of the wealthier individuals, we may be on a path to achieve a budget that is balanced and sustainable.
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
Many argue that Reagan “enacted irresponsible tax giveaways for the rich…[starving] the federal government of revenue [which] led to unprecedented deficits.” There is no doubt that “today’s budget deficits [can] impoverish our descendants.”1
There is a chance that the dysfunction could possibly decline at some point, though right now it doesn’t appear like it will happen any time soon. But when that happens there will be a whole new aspect of dysfunction that we can study since it hasn’t happened that often in the past. While there are a lot of theories out there about how and why and in what way the gridlock has happened, some have more merit than others, and there are still new angles and different approaches that can continue to be studied. But with such a dynamic system to study, continuing to study this area of political science will be a central part of studying Congress for years to
In the United States of America, there are a number of national issues that go unresolved and become more of a major issue subsequently. The lack of resolution in some of our nation’s most critical issues is due to the lack of a common ground between opposing political parties. Issues such as healthcare, climate change, abortion, same-sex marriage, taxes and welfare are reoccurring problems in the United States due to congressional gridlock. The cause of congressional gridlock can be attributed to the difference in liberal and conservative views, which can be further examined through some of the nation’s most prominent reoccurring issues such as immigration and gun control.
And can Congress and the President ever compromise on a budget today?
As of today America’s national debt is 18 trillion dollars and approximately 5 trillion of that is held by foreign countries including China and Japan. In the last few years we seem to hear more about balancing the country’s budget and politicians raising the debt ceiling so we can pay on this debt. How have we gotten into such an overwhelming and complicated problem with our nation’s money? Ironically the same can be said for our individual household debt as well as making the same mistakes and trying to find creative ways to be accountable to our financial responsibilities. Teaching the basics of personal finance n our schools can culturally change our financial practices, leading to a more financially literate public and a stronger, more stable, America. If the younger generations can become more financially savvy, then there is an opportunity for our nation as a whole to become less dependent on debt to survive.
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.
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
I think in the long-term there needs to be some control over how much deficit is allowed. I believe that the current strategy is so convoluted because while we cut social programs and military funding, there are dramatic increases in foreign aid, which while there are dramatic cuts, the total debt increases. The current deficit in the United States is in a vicious cycle, because we keep asking our money to go farther and fund more, but cut taxes over and over again.
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.
Should the government decrease military spending or should it increase military spending? This is a question that many Americans wrestle with, and politically speaking, is a point of great contention since to many, military might evokes a sense of security. However, when considering this question from a foreign policy standpoint, does current military spending really match the current level of threats faced by the United States, or are too many dollars being allocated for an unnecessary level of military strength? There are certainly cons in making the decision to drastically lower military spending, but they are minimal when compared to the positive ramifications such a decision would have. This paper aims to explore these pros and cons
We hear about the debt almost every day: news talks about it, politicians argue about it, even President Obama gives speeches on it. So what is the significance behind it? In this article I am going to explain briefly what the national debt is, how big it is, and what it has to do with us.
One thing that I have learned about college is that you have to sometimes talk about things that make you uncomfortable or scared in order to learn. I do not think I am alone in saying that the United States’ current debt situation is terrifying. Ten trillion dollars alone is an expansive and unimaginable amount of money, and since PBS produced Ten Trillion and Counting in 2009, the national debt has grown to twenty-one trillion. As stated, the documentary was produced during the first months of former President Barack Obama’s first term and focused on former President George W. Bush’s relationship with national debt during his eight year tenure. Ten Trillion and Counting explains some of the questionable decisions that former President Bush made, especially regarding fiscal policy.
Since the attacks a number of civil defense programs have been initiated, which leads to more departments asking for an allowance within the national budget. This ultimately is leading to a larger and larger deficit that is quickly encompassing full percentage points of our GDP. There is a debate on how much defense spending is actually needed, because during the Clinton administration there were massive cuts to the defense budget, which lead to critics saying that our military force was in question. These same critics said that without the funds that had been cut-off by Clinton the military would spiral down to not being able to defend the homeland, let alone take on any offensive. The one argument I have is that President Bush was not in office long enough for his increased defense budget to take affect when he overthrew two regimes (Afghanistan & Iraq) with the same military force that was said to be completely ineffective because of lack of funds.
I have written you to discuss our national budget and the inherent problems in our fiscal policy. Although I am not the best informed on this subject I think my opinions and ideas are relevant. I have several ideas for both raising more capital and lowering government expenditure. I believe action must be taken on both fronts to curb our national debt before it adversely affects our economy.