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The Federal Budget Deficit

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The federal budget deficit it is an excess government spending on state revenues. And public debt is an aggregate amount of government debt, which is composed of outstanding loans and unpaid interest thereon. U.S. federal expenditures is approximately around 3.5-4 trillion dollars, which includes: defense – $700b, social security – $700b, Medicare and Medicaid – $450b, Interest – $200b, other assistance such as food stamps, unemployment, housing, EITC - $180b, and other non-defense - $600b. According to the book “Current Economic Issues”, Article 2.1 “America’s public-sector workers under attack” we can say that the increase in the government deficit led liberal politicians to extreme measures. They had a choice, cut school to save repair roads, or cut Medicaid to save drug rehabilitation programs. These are all methods were designed to keep the state budget at a normal level. And also, liberal politicians have come to the need to reduce the salaries of public employee and benefits, because the reduction of salary costs can give a chance to save other services, for example in education. All these liberal system trying to protect government spending, but they must understand that this does not solve the problem economically, because they made the wrong choice that pits public services against each other. But there is another option that allows us to save public services, is to raise taxes on private consumption. Therefore, liberal politicians have
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