Preview

People Should Worry About Federal Budget Deficit

Satisfactory Essays
Open Document
Open Document
126 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
People Should Worry About Federal Budget Deficit
People should worry about federal budget deficits because it will affect the way they purchase goods and services. As the government enters deeper in debt, meaning spending more than received, the citizens will end up paying the most. Due to the fact that the government is spending money on other facilities such as the roads, education, and transportation, the citizens would have to pay for these services with tax dollars. As the population increases, the demand of government services will increase as well, therefore, the higher the tax dollars paid. As time passes by, people should consider how they spend their money, especially businesses. By eliminating unnecessary programs and grants, money can be obtained from these projects. If

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Nt1330 Unit 9 Final Paper

    • 381 Words
    • 2 Pages

    The concern is that we as a nation have not fully recovered from the meltdown in 2006. Prices of goods and services continue to rise and people are not able to afford food, electricity, gas, and rent, water the basics of life which lead to a shift of poor, middle-class and then the rich, now it’s the poor and the rich. Right now there different types of public services being offered if makes it not as visible to those that are not receiving the…

    • 381 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Deficit spending is a government action in which the amount of its expenditures exceeds that of its revenues. In other words, the government spends more money than it receives from its citizens through taxation. While such spending is generally considered necessary in turbulent economic times, recent annual trillion dollar deficits are alarming to say the least. To be sure, continued deficit spending threatens the very fiscal solvency of this country. Though it is reasonable to assume that both Democrats and Republicans agree as to its danger, there has been little agreement between them on how to implement a plan to reduce the deficit. Democrats by and large agree that a deficit reduction plan needs to include increased revenues, i.e. taxes. Republicans insist that the size of government should decrease, i.e. cut taxes. Despite the political volatility these two opposing ideas create, I believe that there is a way in which to do both. The question of deficit reduction then is: What is the most effective way in which to raise revenues and cut taxes?…

    • 2151 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    For this article, we will discuss the advantages and disadvantages of deficit spending in the context of government, where a governing body of a nation that is in recession needs to borrow heavily from other nations or financing entities in order to spend on infrastructure.…

    • 511 Words
    • 3 Pages
    Good Essays
  • Better Essays

    The majority of debt can be blamed on poor decisions by Congress. Many of their choices are meant to help the American people and to keep them safe, but in reality they often do the opposite. For example, welfare programs were initially created to help citizens going through financial troubles. Instead, they have became a crutch for people who simply don’t want to work. The total amount of money spent on these eighty-three welfare programs accounts for an expenditure of over $1 trillion annually (“CRS”). Some states give more money to welfare-receiving citizens than a $12 per hour job. Some people are able to live off of this money and, therefore, have no reason to look for a job and pay taxes. Another major factor in the national debt are the overseas affairs, mainly the war in the Middle East. The cost of training one soldier is expensive and keeping them in combat can cost anywhere from $850,000 to $1,400,000 per year (“One”). With 2.5 million U.S. Soldiers having served in Iraq and Afghanistan, this has added up to trillions spent on soldiers. These costs don’t account for how much money it takes to transport items. Even the most elementary items like fuel for air-conditioning can cost more than $20 billion per year to reach some isolated areas (“Among”). A third major cause of the debt are Obama’s stimulus packages. The American Recovery and Reinvestment Act of 2009 cost $825 billion, yet nearly 2.5 million jobs were lost within the next two and a half years (“Doubling”). In…

    • 791 Words
    • 4 Pages
    Better Essays
  • Better Essays

    The first part of our economic policy is to raise taxes and decrease government spending. We will raise increase the income tax for those making more than $200,000 by 10%, and the income tax on those making between $150,00 and $200,000 annually by 5%. We will also put a $0.39 tax on cigarettes. The tax on cigarettes will not only increase the government’s revenue; it will also discourage the American people from partaking in such a dangerous habit. We will decrease government spending by getting rid of the US penny. We waste around $120 million per year producing pennies. This will increase government revenue and take some extra money out of the economy, causing prices to fall. This will also cause the government budget to become a surplus. This will decrease the demand for loanable funds, decreasing interest rates. Unfortunately, this will result in a phenomenon known as crowding in. When crowding in occurs, the government borrows less money and as a result, private investment increases. Because private investment…

    • 979 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Money seems to be the root of the problems that surround us in our daily lives. Depending on how much we earn from employment that number is concentrated on our social class in society. However, regardless of our social class we all pay a form of federal tax. Federal tax is a tax levied by the United States Internal Revenue Service on yearly earnings of employees, corporations, trusts, and other legal entities. These taxes that are collected contribute to approximately 47 percent of the federal government’s revenue. This money subsidizes national defense and funds federal programs such as welfare and infrastructure. A percentage of our income is taxed according to the amount we earn; it varies from ten percent when making zero to 20,000 dollars to 30 percent when making 50,000 dollars and above. The controversy of eradicating federal income tax involves all American residents…

    • 628 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Of the three, the last one may be the most susceptible to the influence of policymakers. The larger the capital stock, the more productive the labor force tends to be.…

    • 2350 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    The way that the American Government spends its money is very important. Also the government must remember the Preamble goals when creating the Federal Budget. The Preamble established five purposes of the Constitution: establishing Justice, insuring Domestic Tranquility, providing Common Defense, promoting the general welfare of citizens, and securing the Blessings of Liberty to ourselves and our Posterity. After evaluating the federal budget, it is evident that the budget is split into three clusters: the Big Five, the Middle Five, and the Little Guys.…

    • 730 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Each year the government spends countless amounts of money on things that could ultimately be put toward the debt we owe. The estimated amount of debt as of now is about $17,237,634,587,000. Some ways that you could reduce government spending is mandate a policy that would take $10 yearly for every person in a house hold. Another would be to cut out all the useless spending. You could eliminate all pensions and benefits for Senators, Congress people, and Presidents after they leave office. Make all government benefit programs time-capped. Cut pay and benefits for military & Pentagon personnel that never serve outside the country or near a combat zone.…

    • 906 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Balanced Budget Amendment

    • 1333 Words
    • 6 Pages

    As we discussed and read about this week in our class, the topic of the US Budget and how, why and what should we do about it has become a topic with many views and opinions. The United States of America currently holds over 16 Trillion dollars in debt based on our governments spending practices for the last ten years. Two wars, numerous fiscal collapses and cliffs, a bubble popped housing market, looming medical care costs from a socialized healthcare law and a recession have caused the government to acquire enormous amounts of debt. This debt with caused by what seems to be from irresponsible spending on both the Legislative and the Executive Branches have done nothing to lessen this deficit. One idea that has been discussed not only in Congress, but on prime time news networks is the passage of a Balanced Budget Amendment. A Balance Budget Amendment (as recently seen in House Bill HJR2, 28 NOV 2011) would require that Congress balance its budget every fiscal year unless a three-fifths majority of both houses approved of maintaining a deficit[1]. In a CNN Poll, conducted by ORC International, 74% of Americans surveyed would be in favor of a constitutional amendment to require a Balanced federal budget. So, why did it miss passing by the House of Representatives 23 votes short of the two-thirds majority needed? In the graph we see that federal debt will remain above 73 percent of GDP, far higher than the the 39 percent seen over the last four decades as stated by the Congressional Budget Office. This level is of debt is unsustainable to the our economy and a Balanced Budget Amendment may be the answer to get wasteful spending under control and reduce out national debt.…

    • 1333 Words
    • 6 Pages
    Better Essays
  • Good Essays

    It is a critical role in our country’s financial system. As a citizen, we should care about the national debt because of this debt; it affects our Social Security, Medicare, and our health care. Not caring about our national debt can result in a significant recession. Social media will cover about budget cuts, but what we do not see is a decrease in government spending. The debt needs to be addressed to make changes gradually, and it will make it easier on the economy to adjust.…

    • 839 Words
    • 4 Pages
    Good Essays
  • Good Essays

    National. Debt

    • 3323 Words
    • 9 Pages

    If we are going to limit spending, military spending is a prefect place to start. We are spending tremendous amount of money on the military. Over the decade we have spend over $700 billion a year on our military. US military spending is six times greater than China's and eleven times greater than Russia's. The money use to send soldiers to war can be reduce and used to pay off the national debt. If money is spent less on the military it can be used on education and it can help reduce deficits. Many people may say cutting military spending can lose a lot of jobs and we won't have good security because of the lack of equipment. It may not provide the best security we need and we may lose jobs but it can provide other things for us like more convenient security checks at airports. The money saved can be used to pay of the national debt and could be spent on roads,hospitals,schools, and etc.…

    • 3323 Words
    • 9 Pages
    Good Essays
  • Better Essays

    Effects Of National Debt

    • 2671 Words
    • 11 Pages

    This debt has to be paid somehow and the government gets us to pay them money in many ways such as higher interest rates, slower economic growth, higher taxes, higher inflation, and more (Adkins). They use these manipulations so they can utilize the money to slowly pay back the United States’ National Debt. The government is doing what you call “massive public spending”. This money is going towards construction of governmental funds like new roads, social security, government buildings, and a lot more. This has really led our country to not be able to economically expand at the rates that we should be. Everyone in this country really needs to realize what we are going through so our citizens can start to make better decisions from a voting standpoint. Our people are just too generous and vote on whomever without thinking about the long-term effects on the issues the politicians endure. National Debt keeps growing and growing and we keep paying all of this money to pay back the debt for a lot of things that we don’t even use. Anyone that earns an income and pays taxes are all contributing to the paying back of the government through spending. People need to…

    • 2671 Words
    • 11 Pages
    Better Essays
  • Better Essays

    The constant expenditure of the government even with the deficit is astonishing. “The refusal of many federal employees to fly coach costs taxpayers $146 million annually in flight upgrades” (Heritage.org), is a prime example of unnecessary spending. “Among the abuses was a Defense Department employee who spent more than $100,000 on 15 premium tickets citing a medical condition that required the upgrade” (usatoday.com) that's an incident that took place in 2007, yet events similar to this are still prevalent today. Furthermore “The Conservation Reserve program pays farmers $2 billion annually not to farm their land” (Heritage.org) That amount of money to be spent on such an asinine reason illustrates the truth in Thoreau’s assertion. Some would argue that the spending being done by the government fuels the economy and even creates jobs. That maybe true in some instances, for example the military industrial complex or public works projects however most of the unnecessary spending seen is truly unnecessary and it doesn't help…

    • 781 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Econ 545 You Decide

    • 328 Words
    • 2 Pages

    After thorough consultation with colleges it is my opinion that the appropriate response during this economic downturn is to take an expansionary fiscal policy approach, and to encourage the FED to consider appropriate expansionary monetary measures as well. Though there have been suggestions to increase interest rates and lower government spending, such actions would further stagnate any economic growth. It is the lack of public spending and loss of jobs that have set such an economical ambience. To increase taxes at this time would further diminish the public’s available spending power, and a cut in government spending would take a negative effect in the current job market. It is then in my opinion that the president along with congress increase government spending, and lower current tax rates. It is may also be of importance to consider stimulus measures such as tax credits to increase the available spending power to the public.…

    • 328 Words
    • 2 Pages
    Satisfactory Essays