Essay on United States National Deficit - 1683 Words

Our National Deficit The national deficit is the amount of money our government owes, or the difference between the government expenditure and income. The government comes up with this number by using the federal budget. This takes the amount of the government’s income and subtracts their expenditures from that particular number. Whatever the total for the day is gets added to the total national debt, and it builds and grows daily. There is a difference between the national deficit and the national debt. The national deficit is however much more expenses there were than income for the day. The national debt is what is carried over from year to year. Our national debt as of November 5, 2005 at 3:35 pm is approximately $8,032,346,276,421†¦show more content†¦There are several divisions of the deficit. First, there is the difference between the debt the government owes the public and the debt it owes itself. The public debt is the amount of money the government borrows from the public, eithe r through taxes or securities. The debt the government owes itself is in the form of special programs, such as Social Security, or spending in specific areas like veterans. There are also two types of government expenses. First, there is discretionary, which the government sets a limit for. Then, there is mandatory, where the government determines who meets the eligibility for benefits. The national debt began in 1790 with war debts from the Revolutionary War. Before then, there was no national debt, and after that point the debt has increased greatly because of more war debt and things such as inflation. The amount of debt fluctuates year by year. For example, between the years 1977 and 1981, the deficit was below $100 billion. Between 1982 and 1991, the deficit increased to around $425 billion. Over the next few years, (1992-2001) the deficit dropped back down to below $100 billion, then shot up to about $600 billion between 2002 and 2004. Congress expected there to be a ten year period of surpluses which led to a tax cut. However, in 2002 there was a recession and the terrorist attacks on September 11 which, together, caused the government to spend more and borrow more boosting the deficit back up. InShow MoreRelatedSingle Payer Healthcare : Is It Best For America?1546 Words   |  7 Pageswell. Furthermore, in the United States, for every $1 spent on healthcare, it creates an additional $3 in the economy. So by creating a single-payer system, we would be energizing our economy for decades, plus receiving all the benefits of redirecting the expenses from the private sector (Single-Payer/Medicare for all: An Economic Stimulus Plan for the Nation). It is also not as radical as many may think, either. Expanding Medicare to cover every person in the United States would cost less than itRead MoreNational Debt and Budget Deficit Essay652 Words   |  3 Pagescorporation, the United States government uses money for its operations; meaning that it has both income and expenses. The income of the United States is derived from various taxes and fees and the expenses are what the U.S. government pays out for national defense, highways, social welfare programs, and various other programs. In an election year, the average citizen is apt to hear a great deal of talk about income, taxes, spending, and more importantly budget deficits and the national debt. GivenRead MoreEco 203: Principles of Macroeconomics1662 Words   |  7 PagesThe Budget Deficit The further growth of the budget deficit has been caused by a weak economy and increased government spending in areas such as: health care, education, defense spending, and lowered taxes. The government and/or Federal Reserve Bank can often hurt the economy trying to balance out high budget deficits. There is no doubt that our national debt is increasing. Budget deficits today will reduce the growth rate of the economy in the future, proving where we invest our money mattersRead MoreEssay on Reducing the National Deficit1071 Words   |  5 PagesReducing the National Deficit Many United States citizens are unaware of the countrys current financial state. Many assume that one of the worlds 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. Understanding the National Deficit The amount of money that the United States government owesRead MoreUnited States National Debt1438 Words   |  6 PagesUnited States’ National Debt The current economic event on the increase in the National government debt has become of interest to the public and the decision makers. This paper looks at the economic event as per Stephen Dinan’s article in The Washington Times dated on June 16, 2015, in regards to the impact of the increasing national debt to the general economic growth in America. The proportion of the United States National debt is increasing in comparison to the National GDP. It is evident fromRead MoreThe American Economy : Public Policy, National Deficit, Debt, And The National Debt Essay1136 Words   |  5 PagesThe United States economy is an incredibly complicated entity that is intricately tied to the government. In a time where the national debt is equals almost twenty trillion dollars, it’s important to understand both how the American economy works and the economic policies surrounding it. One of the first things to be acquainted with when studying the American economy is the term publ ic policy. Public policy is defined as a â€Å"system of laws, regulatory measures, courses of action, and funding prioritiesRead MoreFiscal Policy1391 Words   |  6 PagesFiscal Policy The people of the United States are by the fiscal policies. Team C will address the how and why the U. S. budget deficits, budget surpluses, and debt affect different individuals and institutions. There is a wide array of individuals affected by fiscal policy, which include tax payers, future Social Security and Medicaid users. The unemployed individuals and University of Phoenix students will be affected by fiscal policy. The U.S. financial reputation, an exporter, and importerRead MoreEco 372 Fiscal Policy Team Paper1031 Words   |  5 PagesFiscal Policy Paper According to Colander (2010), a â€Å"deficit is a shortfall of revenues under payments and a surplus is an excess of revenues over payments† (p. 406). A debt is normally money that is owed or due and in the United States for Fiscal Year 2013 the budget deficit was projected at $901 billion, however, debt was more than $16 trillion at the end of 2012 (about.com, 2012). The state of the economy is what dictates the view of what is provided by economist in terms of potential outputRead MoreDebt Research Paper835 Words   |  4 PagesThe debt in the United States has been growing for decades and has accumulated all the way up to 19.9 trillion dollars. This amounts to 61,036 for each person living in the U.S, 157,735 for each household, 104 % of the U.S gross domestic product, and 546% of annual federal revenues. Tackling debt and deficits is a national security issue that affects our ability to compete in the international system. The proportion of U.S. government debt held by foreign entities has significantly increased. Read MoreBudget Wars : Debt And Sequestration1029 Words   |  5 Pages Debt and Sequestration in the United States The United States has adopted a persona of uncontrollable spending policies, and short term solutions. As the spending trajectory continues in a downward spiral, fueled by unsustainable policies, and current tax revenues, the national debt continues to grow. For many years, the United States has implemented policies that failed to address mandatory spending costs, which, unfortunately continue to outpace the national economy. Furthermore, Congress has