The initial cause of the financial chaos is the excessive and the repetitive borrowing and spending by the government. How government spending should work is that the federal revenues of which are the amounts of money that the government makes should be equal to or greater than what the government spends per fiscal year. The fiscal year refers to the period when the governme... ... middle of paper ... ... but it can happen. America could easily become a poor nation if government continues to over spend and manipulate its people and other nations. It could eventually get to the point where this country will not be able to recover itself.
National debt is increased even more when people abuse credit, accepting debt into their lives. Unless America focuses its efforts to discouraging materialism by spending less money than what its overall income is, it will proceed further into debt, risking even higher taxes and bankruptcy. Our nation has to overcome its nurtured materialism before we can truly expect to improve its economic status.
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.
My Viewpoint: I’ll begin with Haidt’s first ethical principal of harm and care. I feel that our current government is not being responsible with the way it spends money. They have spent billions of dollars trying to stimulate the economy, but have only driven us further into debt and caused the economy further harm. The stimulus package that was initiated was full of ridiculous funding such as a million dollars to study the effects of ant breeding which is hardly a worthwhile project when we have such a high unemployment rate. Government needs to stimulate small business growth in an attempt to keep jobs here and reduce the unemployment rate.
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. If the Government does not find a way to reduce its expenditur... ... middle of paper ... ...security. If the government primarily allocated spend to these areas or primarily on the people, then our economy would suffer. In other words, if the U.S. government ignored its debt and only concentrated on its people, the debt would continue to rise and would take longer to pay off. The government needs to start allocating more money to debt and get it paid off so that officials could then make its main focus the citizens.
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.
When the government has a high amount of debt it reduces government spending and budgeting. The less the government spends, the more unemployment levels rise. When unemployment levels rise the government has to spend more on welfare which is money spent with no productive aspects. This is a vicious cycle that is often repeated in many countries around the world because their currencies are linked with the US dollar. A country accumulates debt when the government’s expenditures exceed its income during a financial year.
This forced the government to use public money, to keep the banks afloat and resulted in decreasing our budget by billions of pounds (also causing inflation levels to rise). So what is our tax money going towards now? Instead of paying for the much demanded and quite frankly desperately needed improvements in healthcare, housing and education we are now investing in unstable banks, with the hope that everything will soon be fixed, which, to be honest, sounds good, but it’s going to take a long time, longer than anyone thinks. If we were to become independent, we would be in huge debt, and, owing 3.6 billion is a lot when there is only a population of about 5.4 million in Scotland. If we weren’t to become independent, our debts would get paid more quickly.
Once we reach a certain point with global debt it will snowball into thousands of other factors causing global dysfunction. The world's mentality towards debt is one that is shadowed with doubt and treaded around lightly. I view this as the world's major problem because money affects everything that happens. Trade is heavily based on compensation, the military would not be nearly as powerful without a large budget to back it, education would be a failing system without funds, and over population is based off the idea that as long as we have the resources to keep expanding we will. If we can start rewinding the clock of global debt our world can start on the road to recovery, and start to rebuild our individual nations to become better partners in a superior manner
The consequence of this enormous debt is various but all have damaging affects to the country. Currently one third of total U.S. debt is own by foreign countries. Many of the foreign holder are investing more in their own economies as a result. By less countries investing into the U.S. demand for our currency will decrees causing interest rates to rise thous slowing the economy. By the U.S. continuing to add the already outstanding debt they are messing with powers that they can't manipulate for ever.