The National Debt Crisis

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Term Paper: National Debt
The concerns I have when talking about economics is the national debt crisis. There was a time when the United States was able to manage to keep a balanced budget. In fact, the only times a budget deficit existed were in times of war or other catastrophic events. The Government, for instance, generated deficits during the recession of 1837, the Civil War, the depression of the 1890s, and World War I. 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.
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. Along with internal debt, countries are also likely to have external debt. External debt is the money borrowed from foreign sou...

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...icials need to take responsibility and must take action in finding ways to help the nation. The balance of the economy is in the hands on those who abuse power. Educating and providing awareness on the issue of national debt will help Americans understand and motivate them to help the government in finding a solution to this problem.
The government needs to create a balance between expenditures and incomes before the deficits continue on growing. This country has so much to offer but at the same time it does not have the right tools to have a stable economy. The health reform ensuring a cut in excessive spending will not only provide health care to the uninsured children and adults but also help in eliminating the possibility of making America the largest debtor. To achieve this goal, the need of creating better public understanding of budget predicaments is vital.
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