However, as soon as the war ended the deficit would be eliminated. When a government spends more than the revenue collected from taxation, tariff, and other fee revenues, the country must borrow money to cover the deficit it faces which when accumulated over the years becomes the national debt. In addition, there are two types of national debt, internal and external debt. Today the debate over the national debt crisis continues and many U.S. citizens are concerned about their financial future. Although, both the Democratic and Republican parties have their own opinions on how to fix this issue, a decision must be made to solve this issue before major repercussions.
When private spending decreased public spending should increase or taxes should be reduced. When private spending increased, public spending should diminish or taxes should be raised. Politics have a great influence on the outcome of the budget. Since there are so many different arenas that rally for different spending in the budget it is hard to decide what should be budgeted for. There seems to be complete chaos because the government must please certain groups, but at the same time they must also let down others.
The main emphasis should be focused on how to help the poor better themselves through education and training not to gain a better political position. We find this objective cannot be accomplished when the agenda being sought is not to help the poor but to ensure a governmental win. Just as an important election year is fast approaching, an increase in the minimum wage is... ... middle of paper ... ...uld eventually benefit the poor, for example. For individuals who live in areas where the cost of living exceeds what a minimum wage employee working 40 hours a week would make. This added income might be the help needed to escape from government dependence that so many American citizens would welcome.
Recommendations On average the United States spends $529 billion on foreign affairs that will never be able to return the money to the US government. Thus, it falls into the lost money category. If the government were to stop sending meaningless money in outlying areas that have no capital to return, the debt will be greatly reduced. Many of the solutions stated above are possible, but it is our recommendation that the U.S. government stop spending money overseas first. The country may still need to look into other solutions afterwards, but we believe this is a crucial first step to reducing the national deficit.
They need to lower the rate for companies that choose to stay here and hire here in America. Conclusion The outsourcing of U.S. jobs can be solved. The President and Legislators of this country will need to work together as a team to stop companies from sending jobs to foreign countries. They need to promote jobs and repair the terrible damage the recession has done to make America more competitive with other countries. The unemployment rate has decreased, but we have a long way to go if the Government does not prohibit U.S. companies from outsourcing jobs to foreign countries.
This inflation would result in an increase on the price of commodities. This recession should not be as bad as the recession of the 1920’s knows a, The Great Depression. Many problems are occurring because of the recession, unemployment rates are at their highest, inflation is on the rise, and the deficit needs to be reduced by fix international trade and finance within our government and industries. Due to the various economic turmoil’s of the past and present, the American government and its people need to implement new ways in which they can preserve money in these harsh economic times. America needs to stop being frivolous with its money because spending is not going to help it get out this huge deficit that it has put itself in.
Therefore, increase in minimum will hurt the budget due to more money having to be put in programs and cause the nation more debt. Minimum wage increase will have a negative effect. Businesses will have to cut jobs or increase prices, so they will stay in business without losing any money. Also the nation’s budget will hurt due to more money going into different programs of unemployment and bankruptcy. Though others feel that an increase of minimum wage will cause workers to have more money in their pockets, minimum wage should not be increased because it will increase prices, cut jobs, and hurt the national budget.
Even though the economy could benefit from the budget deficit such as economic growth, the economists do not want to take a chance on that. Also, some economists are also concerned that higher borrowing by the government may also openly result in reduced utilization spending. They argue households recognize that higher current government borrowing results in highe... ... middle of paper ... ...ful spending because it is taking a toll on our future, our children’s future, and our children’s children future. Works Cited 1. Case.
Unlike social security some of the costs of Medicare come from federal revenues. Meaning it comes from our taxes. With the deficit at a large rate, the federal revenue must spend as less as possible to maintain our debt. This also means that we, the tax payers, must pay more to meet the debt requirements. "The way that they work is that as costs rise, they just result in bigger taxpayer burdens on future generations.” (Angle, 2011).
The government will be forced to spend more of their revenue on services for the elderly while their income decreases, forcing the United States into even greater debt. Three main factors und... ... middle of paper ... ... health care is compromised. With a larger number of older adults, greater health care needs must be met and this can take away from other services and programs. The economy is affected and could be forced into depression and debt. Our government is forced to spend more on services like pensions and health care while their income decreases because of decreased tax revenue.