The national deficit in 2015 was $435 billion, which means the U.S. government spent $435 billion more than it brought in. This consistent overspending has led to a debt of over $19 trillion dollars. When pondering these incomprehensible figures it is important to consider the causes that led to this financial dilemma, and the effects such a huge debt will have on society.
This growth in national debt has blunt consequences on inflation, interest rates and growing economy. Foreign control of large amounts of government debt means that the taxes will have to be raised to repay debt and percentage owned to overseas governments which is not acceptable. Assuming that trade deficiency also exists it will lead to depreciation of dollar which effect its position as a reserve currency, and if during this process any new currency emerge as a replacement of reserve currency, higher interest rates will be required to sell the debt to foreign countries (Inflation). Raised interest rates have a negative impact on the economy and high accumulation of debts leads to high interest rates (Spending). Hence the economy suffers. This means that the funds for government programs like Social Security and Medicare are not enough (Economic Progress Under Obama). Another consequence of high national debt is the reduced flexibility in fiscal policy (Spending).
Many people view the United States as a country of opportunity in which you can live happily and be presented the opportunity to achieve any goals that you may have, regardless of your class or financial status. This idea is helped made possible by our government. But our government might not be able to provide as much help to that dream if we keep going deeper into debt. In my opinion we need to fund all of these assistance programs less in America so the rest of us can grow and force other to take responsibility and grow up
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.
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.
Many Americans today are aware that the United States is in debt, however, some may not realize by how much. Currently, the United States National Debt is up to 18 trillion dollars and is steadily increasing. This is a serious problem for the U.S., especially for millennials, who are going to be the ones living and dealing with the debt left behind for them. Increased spending, borrowing from China, and interest on the money borrowed are setting up our economy for an eventual crash, one that the upcoming generation may not be prepared for. Every dollar that accumulates into the debt will have to be repaid with interest at some point, making it harder to pay back. To gain a better understanding of how the U.S. dug itself into such a deep hole, one should start at the beginning of where the debt started.
We hear about the debt almost every day: news talks about it, politicians argue about it, even President Obama gives speeches on it. So what is the significance behind it? In this article I am going to explain briefly what the national debt is, how big it is, and what it has to do with us.
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
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.
It’s blatant that our once beloved nation has turned for the worse. In my opinion, America is currently struggling greatly in advancing ourselves as a nation. With that being said, 2016 is a special year due to the fact we have the obligation of electing a new president. Numerous amounts of people will be voting for their reputable parties; meanwhile, countless amounts of people will cast their vote for who they personally like. However, the vast majority of the population doesn’t look into the legitimate issues our nation currently possesses. Citizens should be looking for candidates that have similar perspectives on top issues as them, as well as a respectable character reputation.
In this article, Mark Trumbull, a staff writer for The Christian Science Monitor, points out several different areas that the USA‘s National Debt crisis effects. Trumbull asks nine different questions about the debt crisis and then answer’s them as best as possible. His effort is to bring the words of this huge political battle from a high scope to the reading level of the normal American. In an attempt to educate the normal everyday American about the debt crisis, Trumbull raises nine different questions: 1) What is the debt ceiling, and why does it exist? 2) Are we close to hitting the limit? 3) Will
The United States national debt is as cringe worthy as chalk scraping against a blackboard or teeth against a fork. As Americans tuck their children in at night, this little voice in their heads teases them of the nineteen trillion dollar piano hanging above them, which will eventually be propped over their children and then their grandchildren at an even heavier weight. What is it that has the potential to cause the U.S. national debt clock to tick against them? The prospective investment in LED strips for crosswalks or any other helpful items to make it safer for smartphone users is a contributor to the draining of bank accounts; this technology is bringing evolution to a screeching halt, rewarding the bad behavior of those who are not paying
The National Debt consists of the total debt accrued by local, state and federal. Public debt is essentially the federal debt, thus compiling the staggering number that already exists. The debt deficit to me is astonishing. Currently, the total public debt in the United States, as of December 16, 2015, is $18,788,138,221,346.49. This includes $13,600,726,418,253.26 debt held by the public and $5,187,411,803,093.23 by intergovernmental holdings (usgovermentdebt, 2015). High GPD is not anything new to the United States. The all-time high was 121.70 percent ($18827323.00) in 1946 and a record low of 31.70 ($253400.00) percent in 1974 (United States Government Debt to GDP, 2015). The way we are spending, and the debt we are accruing, it would
Thomas Jefferson once stated, "I place economy among the first and most important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt" (Bussing-Burks, 7). A lot has changed since Jefferson was President two hundred years ago, but the need to be financially solvent is something that will always be necessary for the United States to maintain its leadership position in the world. The United States of America currently owes $16.7 trillion in debt primarily as a result of the government’s spending practices during the last ten years. Two wars, several fiscal collapses, the bursting of the bubble in the housing market, looming medical care costs from an