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National Deficit And National Debt Essay

1246 words - 5 pages

The growing national deficit is a looming problem in the United States now more than ever. The national debt is constantly increasing and government spending is out of control. If these issues are not solved then they could spell disaster for the nation’s economy when the infamous debt ceiling is finally reached. Currently the national policy on the debt is to continue raising the debt limit until a solution is found that is agreeable between both parties in Congress. The two main issues of over spending and the constant raising of the debts ceiling by Congress can both be resolved by government spending reform, balancing the federal budget and initiating pro-growth policies in order to increase the government’s tax revenue.
The debt ceiling is a term that holds a lot power and is currently controlling the financial state of the United States government. Primarily because it is the limit on how much money the government can borrow before it must shut down and begin paying off its debts forcing Congress to work out a solution to the debt problem (Sahadi, 2013). The primary issue with this problem is that Congress continues to raise the debt ceiling pushing back the inevitable judgment day that will come when the United States can no longer borrow money and not have enough funds to pay for its budget. The current debt ceiling is set to hit on February 8, 2014 after which the treasury will not be able to borrow anymore money to make its obligated payments (Everett, 2013). It would be an advisable move to not raise the debt ceiling past its $17 trillion dollar mark, forcing Congress to create a solution to the financial issues that are facing the country. Currently 70% of voters are dissatisfied with the current state of the nation’s financial future (Sargent, 2013). This can prove to be a large problem if the politicians in Congress do not work together to find a solution that will benefit the nation as whole and begin to lower the its debt, removing the proverbial hammer that is hanging over the country’s economy. The other issue that is facing the American government is overspending.
Overspending is a pertinent problem facing the lawmakers in Congress. In 2012 discretionary spending reached $1.3 trillion and mandatory spending $2 trillion, while only bringing in $2.5 trillion in revenue. Since the turn of the century back in 2000, non-mandatory spending by the government has topped out a whopping $16.1 trillion just in the past 13 years (Boccia, Frasser & Goff 2013). This persistent overspending on programs and services that are not necessary to the functionality of the country is what is causing the deficit to rise year after year. To remedy this issue the government must either increase the revenue it brings in through taxes and trade or reduce the amount of money it spend or perhaps even both. In 2012 thirty-one cents of every dollar that Washington spent was borrowed (Boccia, Frasser & Goff 2013). Most of which went to large programs such as...

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