Examining the Budget Deficit in America: Concepts, Causes, Facts

I believe that to understand the problem of budget deficit we need to understand the concept of fiscal policy. The most important source of government revenue is taxes. Government collects taxes from individuals, corporations, firms, and etcetera. Other source of receipts can be profits of the state enterprises and the firms selling the goods and services. In the USA they are not so numerous, but in the Western Europe and in developing countries have a little bit greater value: in Venezuela, for example, the oil sector belongs to the state, and in the beginning of 80th years provided a huge share of budgetary receipts - 77 %. (2) If there are receipts that government gets from different sources, then there are expenditures that government has. It is obvious that if government spends more than receive, it causes budget deficit. In economy these two important concepts of spending and receiving are interdependent. Because deficit occurs when the State expenditures exceed receiving in concrete to year, the government should control this process. When there is not enough money in budget, government borrows money from all different countries. Finally, we encounter with more problems. It does not help us to get out of the debt. Theoretically, the government has to choices to solve this problem. One way is to decrease its spending, and second way is to increase collecting of tax. But in the real world of economy this or that way will not work.

Why the budget deficit of the USA increases during all history of the country? In my opinion, on these questions there is the answer: military expenses, national defense, and war. These three are the biggest issues.

During all history the USA had the most powerful army in the world. It looks like...

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...vernment has to think about, but whole society. Our generation will live in different world than our parents used to live. With debt increasing, the changes in whole country will increase to try to reduce debt. And it does not look changes will be better. Government will need more money from us, taxes will rise, and retirement age will be increased. It sounds pretty scary if we will have to work till 70. There is something to think about for what we should spend money on. Some of that spending has to be reduced, such as military expenses. The U.S.A already got the most powerful army in the world, so this money should be put in economy development. Government should focus on more efficient strategy to overcome national debt. I personally think the government should spend more money on education and job retraining which will help to support society well educated and