The Government budget balance is a country’s general government budget over a year. It includes all government levels and public social security funds. A negative balance is called a government budget deficit. In 2008, the United States government needed to borrow 459 billion dollars to pay their bills. Due to extraordinary economic conditions, the United States government needed to borrow 1.4 trillion dollars in 2009. In the next decade, it is expected that the United States will need to borrow 16 trillion dollars. The United States public debt is money that is borrowed by the federal government of the United States. In September of 2008, the national debt was 9.6 trillion dollars. In March of 2010, the national debt increased by 32% which is 12.6 trillion dollars.
The total unfunded promises and liabilities of the United States is over 62 trillion dollars. In order to pay for our major liabilities and promises, the United States needs that money invested today but of all that money they have zero of it. The federal debt includes money that the government owes to social security, Medicare, and debt owed to the public. By the end of 2010, the federal government will owe almost 9 trillion dollars to the public. Also, our gross domestic product is expected to reach 14.6 trillion dollars by the end of 2010. The public debt to gross domestic product ratio is used to determine how much we borrowed relative to our national income. By the end of 2010, our public debt to gross domestic product will be around 62 percent.
The federal government was formed in 1789 and the government has been having problems with the national debt since. Many factors lead to our national debt like war and the great depression but we always managed to bring the dent down. In the early 1980s, the national debt began to grow quickly. In the late 90s and early 2000s the government was running budget surpluses. As a result, our federal budget has been low and the national...
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