All the while, the economy is diving further and further into its despair. One of America’s largest problems is the ever growing mountain of federal debt. Investors say that in some cases, debt can be a tool to make money. However, critics claim the United States has used its debt improperly. Politicians have claimed that the budget deficit is decreasing.
Our country has experienced some trifling times throughout these two decades. Due to these experiences our economy has taken a great burden which has resulted in unsubstantial unemployment rates, fluctuating interest rates, unstable GDP, and an increase in taxes. Our behavior when involved in a national crisis is, we panic and turn to the government to fix the chaos and restore peace. The federal government’s responsibility to its citizens is to respond to the changes in the economy by using the necessary tools to re-establish stability. Expansionary Fiscal and Monetary Policies are economic policies used by the government to level out the extreme swings in our economy.
In opposition to t... ... middle of paper ... ...Act. (n.d.). ObamaCare Facts: Facts on the Affordable Care Act. Retrieved December 15, 2013, from http://obamacarefacts.com/obamacare-facts.php Rein, L. (2013, November 7). Federal government shutdown cost $2 billion in lost productivity, OMB report finds.
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. The U.S. National debt affects consumers every day, but probably most notably in Americans facing higher taxes, higher interest rates, and the U.S. government cutting back on services, weaker job markets, and lastly inflation. The national debt exists as a result of government shortfalls, or deficit budgets in which the government's expenses exceed its revenues. Internal debt includes the amount borrowed from sources within the country. The government raises this money by selling bonds, bills, securities, and government.
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. Past During the 1940's which would be the World War II and great depression era, there was an increase in debt.
These choices cause debt to pile up on the government, who is struggling to make it disappear. The deficit and debt of a government gauges how well it is being run and how well it has been run in the past. According to The Economist the national debt is the total outstanding borrowing of a country’s government; it is an accumulation of deficits that has yet to be paid off (Economist, A-Z). The current U.S. federal deficit, as of the 2013 fiscal year, is a monumental $680 billion dollars, adding to an even higher debt. Any attempt to diminish this debt has the consumer footing the bill, but there has to be a different way.
However, even that is up for debate. Imagine the implications if households across the country failed to live on a budget for that long, but in reality, that i... ... middle of paper ... ... Heritage Foundation Federal Budget in Pictures. (2012). [Rising Deficits Drive U.S. Debt Limit Higher, Faster]. Retrieved from http://www.heritage.org/federalbudget/increases-us-debt-limit.
Journal of The Heritage foundation, Backgrounder #2768 on Budget and Spending. Retrieved February 12, 2013 from URL:www.heritage.org/research/reports2013/02/how-the-united-states-high-debt-will-weaken-the-economy-and-hurt-amerinans
Since World War II, home ownership and higher education have been equated with success in America. In this 21st-century economy, higher education is more than ever an important pass to upper social mobility. However, like the American Dream of home ownership that was shattered by predatory lending, The American Dream of higher education is also being threatened to be crushed by ever-growing student loan debts. Following the Great Recession, it is only normal to worry about an impending student debt crisis given the parallels it has to the housing crisis. Not only do both issues stem from inequality and involve huge amounts of loans that are doomed to default, but most important, they lack proper government intervention.