One hundred-fifty-seven billion dollars was the deficit in 2002, while 521 billion dollars was the deficit in the fiscal year of 2004 (“Historical Tables”, 2004, 21-22). The American government's debt is increasing at $20,000 per second. A person with an average-income will lose his annual salary in a matter of few seconds due to the rapidly increasing debt (US Debt Clock). This is a very important issue to teenagers and college students, as they will soon have to carry the financial burden from the United States government. The underlying reason for the deficit in the budget is due to the mismanagement in the spending and taxing policies adopted by the President.
A large increase in government debt occurred during Ronald Reagan’s presidency in the 1980’s. Ronald Reagan was dedicated to decreasing taxes a... ... middle of paper ... ...ons of people, the plans will never be successful and will forever be a burden on the public. Hamilton was more concerned with the government as a whole, while Madison was concerned with the people that the government will affect. The United States debt, as of the fiscal year ending 2013, was $16,738 (in billions). The chart below depicts how the government debt has changed over the previous 10 years.
This frightening number, averaging about $3,900 per family, is just as bad for the economy as it is for the consumers. In September of 1995, for example, The AT&T Universal card charged $15 per month for late fee to people who paid their bills just one day after the due date. Visa, on the other hand, was charging the penalty feesfor as little as a dollar over the limit, plus an interest of up to 24.9 percent per year. In the second quarter of 1995, overdue payments as a percentage of outstanding balance hit 3.267 percent. That is the highest mark since recession of 1991.
Right after the Civil War the debt held at three billion dollars. In 1900, this debt of three million dollars had decreased to one million dollars. In 1919, at the end of the World War 1, the debt skyrocketed to 25.5 billion. When the Wall Street fell apart in 1929, the United States fell into something that was called the Great Depression. It started in 1930 and lasted until 1940.
That is an overwhelming increase of over three trillion dollars. This country has also seen an explosion of debt at the household level. Some people have suggested that our higher standard of living is actually because of debt, rather than from higher wages. The American dream has become ‘borrow money, spend money, and hope to repay tomorrow.’ In fact, the average American worker’s wages have been stagnant for the last six years. Their paychecks reflect a simple increase of only ten dollars per week, after consumer inflation has been taken into account.
Over the following years, the debt grew. Under President Andrew Jackson, the debt was shrank to zero, but grew to millions soon after.”(Bureau of Public Debt). He called the debt a “national curse.” World War II also brought debt, and it briefly shrank after the end of the Cold War. “In the 1970’s, the national debt more than doubled from $366 billion to $829 billion. In the 1980’s, it more than tripled from $829 billion to $2.9 trillion.
In 2014, a wage survey concluded that the national average wage per citizen was $46,481.52 (Social Security). If the United States continues to ignore the debt that is lingering, the countries that we owe money to could cut us off from trade. If this were to occur, not only would it hurt our economy, but we may end up in another great depression. China, Japan and Brazil are just a few countries that the government is in debt to. Even though there are other areas of concern such as military, education, and social security that the government needs to allocate spend to, reducing the national debt is what our government officials should be their primary expenditure considering how large our debt has gotten to.
The reasons d... ... middle of paper ... ...mised to repeal tax cuts to the wealthy class, Americans who earn more than 250,000 dollars a year. During his election in 2008 happened a major financial crisis. This financial crisis of fall 2008 was a cause to the worst holiday shopping period in the past forty years. After his election his administration took time to contemplate a fiscal stimulus plan. This plan increased tax cuts, unemployment benefits spending or series of projects, aid to the state and local governments, and much more.
Employers and workers finance the program through payroll taxes. “Participation in the social security system is required for about 95 percent of all U.S. workers.” There are four main points why social security is going to fail and ruin it for the generation to come. A better way to measure the financial trouble facing Social Security is to compare the promised total future benefits to the program 's total future taxes on a present value basis. Unless policymakers cut Social Security and other programs, the fiscal and economic outlook for the nation looks grim. The large baby boomer generation is beginning to retire in droves and average life spans in the nation are continuing to rise.
Up to that point, large budget deficits were generally only allowed during wartime, but this pattern ended after the Great Depression. Roosevelt’s New Deal meant that the government spent much more than it previously did, even after the economy improved (Budget De... ... middle of paper ... ...“Obama Stokes Deficit Fight.” The Wall Street Journal Politics. The Wall Street Journal, n.d. Web. 6 June 2011. .