Budget Deficit

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Budget Deficit

For many decades, there has been a concern for the deficit within the United States. Many politicians, authors, newscasters, and citizens have expressed their distress in order to resolve or control the issue. Keynesian economic theory states that running a budget deficit is okay, as long as the deficit is not exorbitantly large and is not carried for a long period of time. Even though many experts agree with this notion, having a deficit at all is important to the present and future economic stability of a country. For the most part, the uncontrolled increases in spending and reckless tax cuts in the past have damaged the federal budget, which the White House and Congress have allowed to occur.

President Bush has put a fair amount of influence towards the federal deficit in his campaigns, State of the Union Addresses, and policies as President. According to the article titled U.S. Budget Deficit Shrinks, at the end of the fiscal year for 2006, Bush stated that he had officially cut the budget deficit in half to $247.7 billion, as promised, from the projected deficit of $521 billion. The President credited his tax cuts and business tax incentives for the better-than-expected showing in revenues, which drove the deficit to the lowest level in four years. Obviously, there are many that argue against this rationale to the fact that there was more at hand than the President’s policies. The Democrats belittled the sharp reduction in the deficit for the last fiscal year, with some saying that the White House deliberately exaggerated its initial projection to show a better result close to the Nov. 7 elections for control of Congress. "No one should be fooled by the game being played here," said Sen. Kent Conrad (D-N.D.). "Cutting the deficit in half from an intentionally inflated high point is a misleading goal and certainly no measure of success.” It is also possible that there were other factors in the economy that lead to the increased...
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