Fixing the national debt is a coservercal issue within our government. Since the two parties have opposing views on how to fix it, it creates gridlock on the process of creating a plan to reduce it. (Perdue, 2015) Our federal government debt has extensively tripled since the year 2000 (see appendix A) (Historical Debt Outstanding Annual 2000-2015,2015), today our debt is a tad bit over nineteen billion. (U.S.NationalDebtClock.org , 2016) We have arrived at his point through the imbalance between revenues and spending, fueled by ever-high interest rates. Which will approximately result with us reaching ninety percent of GDP. (Greife, 2010) The government has no revenue. Therefore, the money it receives comes from the people and the …show more content…
(U.S. National Debt Clock.org, 2016) As a country we have carried debt since the American Revolution, in which we borrowed money from France and Netherlands . Yet under Jackson’s presidency, he sold government-owned land and cut spending to once again make us a debt free country. Now days resolving our debt is not at all that simple. Dollars are not minted much these days, instead, they are digital clouds created by the Federal Reserve. (Grant, 2016) This was made legal after the ruling on the case Perry v. US in which the supreme court ruled that our economy will no longer be based on the gold standard. (Perry v. United States 294 U.S. (1935), 2016) This should concern every citizen considering the fact that only the Federal Reserve can print money; the states and local government cannot. That causes state governments to cut services and raise taxes to meet pension obligations to public employees. (Grant,2016)
Liberals and conservatives currently have opposing views on how to decrease the Federal debt. Over all, Democrats believe that the way to reduce the debt is to heavily tax the rich. Senate Democrats developed a debt reduction plan that would cut 4 trillion dollars from the projected borrowing over the next decade, without touching the expensive health, retirement and social programs. Within the plan, sharp cuts will happen at the Pentagon and other
The growing national deficit is a looming problem in the United States now more than ever. The national debt is constantly increasing and government spending is out of control. If these issues are not solved then they could spell disaster for the nation’s economy when the infamous debt ceiling is finally reached. Currently the national policy on the debt is to continue raising the debt limit until a solution is found that is agreeable between both parties in Congress. The two main issues of over spending and the constant raising of the debts ceiling by Congress can both be resolved by government spending reform, balancing the federal budget and initiating pro-growth policies in order to increase the government’s tax revenue.
To reduce our national debt, which is 3.8 Trillion dollars in 2012 according to (Doc B), We should stop handing out money and start loaning out money, cut some money from all of the Big five programs and stop spending the money America doesn't have.
The recent clash between the president and congress about raising the debt ceiling made the front page on every newspaper throughout the country and generated controversy of unimaginable proportion among the citizens of the United States of America (College for Financial Planning). No macroeconomics issue is more controversial today than the impact of large public debt on the economy and on future generations, but, however, there appears to be a huge disconnect between professional, political leaders, and the ordinary public about the national debt and its impact on the current and future
Many United States' citizens are unaware of the country's current financial state. Many assume that one of the world's wealthiest countries could never be in debt. This is untrue however, and, in fact, the country with the greatest income per capita is in major debt. This study will examine possible solutions to reducing the United States' national budget deficit.
I agree that a solution to fix the issue of the national debt is to increase taxes by fifty-seven percent or cut all government spending by thirty-seven percent. Although I agree with it, I think there maybe a way to improve it without making things awkward. Increasing the tax percentage could fix our problem, I just wonder how the younger generations will handle this considering the financial situation they are dealing with now with high student debt and other economic factors. Cutting government spending is not necessarily a bad thing. However, if you cut spending on vital programs like Medicare, the quality of products from the programs may not help us the way they were meant to
“At the time we were funding our national debt, we heard much about “a public debt being a public blessing,” Thomas Jefferson on value of the public debt. The idea about “funding the public debt was good for the country,” was constantly rejected by the Democratic-Republic party, they also believed that the plan for a national bank was completely unconstitutional. The party was appalled when they found out Hamilton was using the public debt to solidify his party. Alexander Hamilton created the Funding Act of 1790, this authorized the government to give the states “loans” for their war debts. Then he proposed the idea to create a national bank, he believed that with the national bank he could pay of the war debts, raise money for the country, and create a common currency. Democratic nominee Hillary Clinton’s stance on this subject is to raise taxes on the wealthy, she claims that this will not increase the national debt. But, some politicians are skeptical of Clinton's plan, they believe that, although it would increase the debt it would also make about the same in profit. The Democratic-Republicans also deemed this unconstitutional, for this subject I believe that the Americans of 2016 would have voted for the Democratic-Republican party. Mostly because, today our debt is still rising, even though the national bank and paying our debt off, has been established since Hamilton created the act.
As we discussed and read about this week in our class, the topic of the US Budget and how, why and what should we do about it has become a topic with many views and opinions. The United States of America currently holds over 16 Trillion dollars in debt based on our governments spending practices for the last ten years. Two wars, numerous fiscal collapses and cliffs, a bubble popped housing market, looming medical care costs from a socialized healthcare law and a recession have caused the government to acquire enormous amounts of debt. This debt with caused by what seems to be from irresponsible spending on both the Legislative and the Executive Branches have done nothing to lessen this deficit. One idea that has been discussed not only in
The U.S. national debt is currently $18 trillion dollars and it is rising fast. The national debt today is the highest the U.S. has ever seen. In George Washington’s Farewell Address, he declared the U.S. should avoid going into debt. If the nation end up in a deficit, that the debtors were responsible for paying off the debt so that it doesn’t burden the future generations. Like the rest of this advice in his Farewell Address, the nation ignored it. The ideal goal right now should be to stop the debt from increasing anymore because it is impossible to stop the debt from increasing and expect to pay it off in this generation.
The total United States national debt is now over 19 trillion dollars and our Congressional leadership shows no signs of accomplishing any significant changes to make the situation better. That 19 trillion equates to almost $59,000 for every citizen of the United Sates. Sound financial practice is to not spend more money than you earn and borrow only for emergencies. It appears our Congress is incapable of adhering to sound financial practices as in the last fifty years there have only been five years when the U.S. recorded a budget surplus. Between 2009 and 2012 the U.S. added 5.5 trillion dollars to its national debt.
One trillion dollars is an astounding amount of money. What if I told you that the United States of America is in debt not just one trillion dollars, but nineteen trillion dollars in debt, as of 2016. As time goes on, the United States only continues to rack up more and more debt. It is estimated that in just 4 years, our national debt will increase by about 2 trillion dollars. The truth is, our country has been battling debt ever since it was founded. Today, with the debt increasing so fast, every politician is striving to balance the budget, so the United States can continue to be the best country it can be. If the United States cannot dig itself out of this ever deepening hole, national security will become an issue, influential power will be stripped away, and ultimately quality of life in this nation will become extremely undesirable. I believe the United States national debt is a huge threat to our country and something must be changed in order to battle this crisis.
As of January 2012, Congress raised our debt limit to $16.4 trillion. That is an extreme amount of money and almost shocking to hear that we owe are behind that far. It makes you think, what have we done so wrong to be in this current situation? What could we have done differently in the past to not be here? These questions need to be raised everyone involved in this mess and it needs to be figured out. Congress has the ability to raise the cap limit, which they have often done in the past, but say that this time, if they don’t see serious plans, the limit won’t be raised. The US Treasury has enough “tools” to keep the government afloat into early 2013 but after that, it’s up to the strategies we have put into play to execute. The government is spending $3 for every $2 it takes in according to the Urban Institute. That is a stat that needs to be the opposite way if America plans on seeing changes in the near future.
National debt has always been a constantly occurring problem. This debt is a problem due to the fact that it limits economic growth. With low economic growth, there tends to be a lot of problems that occur. These struggles include high interest rates which leads to higher debt, low salaries for citizens, and fewer jobs are provided which connects to higher unemployment rates in America. However, America
Debt is nothing new to the United States government. Ever since 1790 when Alexander Hamilton successfully convinced the congress to assume state debt the US has had a constant record of debt. This type of budget issue has been a constant leadership challenge to every US President. The Obama administration continues this trend of deficit and debt which has created the highest total federal debt in US history. . There are unique challenges and decisions every US President has had to make in regards to the budget and the economic success of the United States. Whether you agree or disagree with decisions made by President Obama there is a particular pressure that comes with trying to work across party lines to get support from those who disagree with his priorities. When President Obama entered office he took over a historically high debt and deficit during a time of an economic disaster. The new President inherited the challenge of balancing the budget and reducing debt while still spending to increase future economic growth. Though there are many aspects of concern regarding the federal budget, Obama’s main efforts coming into the White House were to increase tax revenue, by closing loopholes for the wealthy and adjusting previous tax measures, while reducing income inequality, increasing educational spending and providing universal health care.
In 2010, President Obama’s Chairman of the Joint Chiefs of Staff, Admiral Mike Mullen, said, “I think the biggest threat we have to our national security is our debt.” Right now, the United States has a debt of 18.96 trillion dollars. Over half of the discretionary spending in 2015 was spent on the military. The majority of mandatory spending was spent on social security, unemployment, labor, Medicare, and health. I believe there are a lot of components that have caused our national debt, but the most glaring problem is the government spending money on unnecessary expenses and the high expenditures for the military, social security, and healthcare programs. In order to lower the national debt, the government could cut back spending in some
Throughout most of the country’s history, the United States’ federal government maintained a reasonable level of national debt. For example, the total national debt in 1981 was $998 billion. Since then, however, the government has generated significant budget deficits, and the level of debt has risen to $16.7 trillion in 2013 (Calleo, 39). Budget deficits are caused