Budget Surpluses

“Ensuring quality higher education is one of the most important things we can do for our future generations” (Ron Lewis). There are more students enrolling in post-secondary schools than ever before and consequently there are more students acquiring large debts. Once a student graduates, they enter a $33,000 or more student loan debt (Students Loan Resources). These student loans continue to place graduates into large debts, which is largely caused by their lack of knowledge of available resources, and this impacts their everyday lives and future generations.

A fiscal deficit is when a government's total expenditures exceed the tax revenues that it generates. A budget deficit can be cut by either reducing public expenditure or raising taxes. In this essay, I am going to analyse the benefits and costs of increasing tax rates to reduce fiscal deficits instead of cutting government expenditure.

An education is one of the most important tools a person can acquire. It gives them the skills and abilities to obtain a job, earn a wage, and then use that wage to better their lives and the lives of their loved ones. However, due to the seemingly exponential increase in the costs of obtaining a college degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling

Overspending is a pertinent problem facing the lawmakers in Congress. In 2012 discretionary spending reached $1.3 trillion and mandatory spending $2 trillion, while only bringing in $2.5 trillion in revenue. Since the turn of the century back in 2000, non-mandatory spending by the government has topped out a whopping $16.1 trillion just in the past 13 years (Boccia, Frasser & Goff 2013). This persistent overspending on programs and services that are not necessary to the functionality of the country is what is causing the deficit to rise year after year. To remedy this issue the government must either increase the revenue it brings in through taxes and trade or reduce the amount of money it spend or perhaps even both. In 2012 thirty-one cents of every dollar that Washington spent was borrowed (Boccia, Frasser & Goff 2013). Most of which went to large programs such as Social Security and Medicare and if these large, growing programs, or just the budget in general, do not undergo financial reform it could spell disaster for the economy and fiscal state of the nation.

Answer: If there is a difference in the spending of government and the in income will lead to the deficits. More over deficits occurs when the amount of government total budget exceeds its total receipt for a fiscal year was said by US senate budget committee. From the US debit clock, largest budget items list are medical, social security, defense/war, income security, net interest on debt, federal pensions. As we can see that the largest budget items every item has its own importance for Medicare the budget is $949 billions, social security is $872 billions, defense is $591 billion, income security is $310 billions, net interest on debt is $245 billion, and federal pensions is $253 billion. A cut back in the spending of the government is not an easy task because which lead to so many issues. Every items has got his own importance consider defense which is a national importance, medical which is health importance, likewise every items has got their own importance. I would recommend cut back on income security in which the budget is allotted to maintain forester care, earned income credit, unemployment compensation, nutrition assistance, family support, making work pay this is meant for the citizens of the social welfare.

Many believe the country's dramatic decent into debt began with a choice, not a crisis. In January of 2001, with the budget balanced, the Congressional Budget Office (CBO) forecast that the nation would have over a $2 trillion dollar surplus by 2010, enough money to pay off the entire national debt. In the years following 2001 political leaders chose to cut taxes, increase spending, and wage two wars solely with borrowed funds (Montgomery, 2011). Today the national debt is larger, as a percentage of the economy, than at any time in U.S. history except for the period shortly after World War II.

Since the early 1950's Americans have had trouble controlling overspending. The United States government has engaged in deficit spending. This occurs when spending exceeds the amount of income

A decade ago, student loans barely existed. Today, however, American students borrow up to couple million dollars a year to attend college. An entire generation is burdened with debt, and affected by the modern phenomena known as the “student debt crisis.” In recent years, student loan borrowing rates have risen notably, leading to concern about the public financial risks associated with the financial challenges faced by many students. Of late, the United States government has given out about $170 billion in financial aid annually in an effort to encourage students to attend postsecondary education. Such funding are usually supported by research that consistently finds positive and growing average economic benefits of

In the U.S. students are encouraged to earn a college degree, but the cost of an education turns many away. “Driven by the allure of a decent salary with a college degree, Americans borrowed to go to school. Outstanding student debt doubled from 2005 to 2010, and by 2012 total student debt in the U.S. economy surpassed $1 trillion” (Mian, Sufi 167). There are plenty of opportunities to obtain funds for college, including one of the most common, student loans. A student loan is defined as “a common way to fund education, specifically college and graduate school, and they provide educational opportunities that you otherwise may not be able to afford” (Barr). Student debt is at an all-time high in America. Over half of all lower income

Interest rates are constantly on the rise along with the cost of tuition and the income levels of students are not increasing in order to make ends meet. Therefore, student debt is spreading rampantly across our nation and is becoming a tremendous issue. Student debt is a topic that is relevant in today’s society because it affects such a large portion of the population. Furthermore, it is affecting the country 's economy in many ways. With the accumulation of debt, students are unable to afford to purchase a home, or at times, a brand new car because there is simply no way that they can afford such a large investment while they scramble to pay their loans.

Student loan debt in the United States is expanding unrestricted each year. There are 36 million Americans today, holding over $740 billion dollars in student loan debt. (U.S. 2013) The current student loan system is intended to open doors to economic prosperity for those who could not otherwise afford to go to college. Research suggests that the unintended consequence of too much available student credit is real people losing prosperity and languishing in debt for extended periods of their lives. Reducing or eliminating the availability of student loans would have a tremendous impact on improving the lives of Americans. If things continue the way they are now, American’s will soon find college, and its implied ticket to economic

Tuition and student debt at colleges and universities in America have been rising far more quickly than inflation for over four decades. This is a trend that will continue without intervention. Student debt drastically affects students’ lives and decisions from getting married, to buying home, or to starting a business. The amount of debt held by students after graduating not only negatively affects the individual, but the economy as well. Loads of economic activity is currently halted by students working to pay off their loans. This is a consequential problem and the increasing number of student debt in America must be addressed.

Debt.” 21). In other words, at least one-fifth of tax money did not bring US citizens any benefits. Besides, less capital is available for the federal government to invest in the

An advantage to deficit spending is when the government steps in with tax cuts and lower interest rates for businesses so they can invest in hiring new employees which in turn the unemployment rate goes down and consumers start spending their money. Another advantage to deficit spending is when the government gives tax rebates to consumers, which stimulates the economy as well. Stephanie Kelton, from New Economic Perspectives, says consumer spending makes up 70% of the GDP. The other 30% is made up of Investment Spending, Government Spending, and Net Exports. How can the other 30% make up for the consumer’s 70%? This is why it is advantageous for deficit spending to keep the economy thriving. Unfortunately, there are always disadvantages that come

As long as the deficit is in proportion to GDP or Gross Domestic Product, the sum of a country’s goods and services, there is no significant fiscal risk to the economy. However there is a counter-argument that government deficits do matter. The argument is that if interest rates were to go up even a quarter point then that would lead to the need to take out even more debt to pay off previous interest payments. This would lead to the need to decide whether to decrease current spending on other programs such as healthcare or infrastructure to compensate for the new interest payments, or to maintain current spending and simply borrow more debt without attempting to curtail spending.Following the first would hurt economic growth and increase inequality, but following the latter would lead to the debt climbing higher at an increasingly fast rate that would risk causing massive inflation. Both sides make valid points.