The national debt is at an astonishing 15 trillion dollars and has rapidly grown since the early 90’s. The national debt grows at a rate of 4 billion dollars a day since 2007 and each citizens share is around $48,000. (Hall, 2011) Even though are national debt is not something that most people worry about in our nation, it is very important to maintain and limit. Our government borrows money from other countries to support our programs, such as social security and welfare and that is causing our debt to raise continuously, our government hit its debt ceiling in the beginning of the summer. The government ...view middle of the document...
That move led to an ever rising deficit. With the wars in Iraq and Afghanistan have the government has spent over 500 billion dollars during the Bush administration and hit a trillion dollars in 2010 (Wright, 2008). When the government increases spending and doesn’t correspond that with tax increases the deficit will grow significantly. The government did manage to hit surplus during the Clinton administration, but focus was changed and deficit began increasing when he left office and Bush took over.
The current deficit in 2011 is set to surpass the total size of the economy in record with the U.S. surpassing the record national debt at almost 16 trillion dollars and Obama has a new plan to focus on leveling out the economy with a budget (Dinan, 2011). I believe that the government is obviously not performing well in area of economic policy because of the casual growth we have seen the last decade or two. The government is not completely to blame though. Citizens need to have a better understanding of the way economic policy works so they can perform the necessary functions and keep the government in check when they make big financial decisions. Vast majorities of American’s know that the national debt is a problem that should be addressed if we want our country to consistently grow economically and that if we continue to increase our yearly deficits and national debt that we will slow economic growth significantly. In a recent poll, 89% of American’s believed the debt ceiling should not be raised, but contradicted themselves in another poll with a majority of American’s wanting increase spending to jumpstart the economy (Wright, 2008). The problem is not with the intent but with the strategy.
The government’s spending will need to be controlled and minimized in order to ensure our country has a chance to make it out of the current economic situation. Obama’s new budget puts a lot of hope in that the economy will catch a big boost after the few sluggish years we have had by paying off what we take out in succession in order to stabilize the deficit (Dinan, 2011). Possible flaws and contrary beliefs are pointed out in an article by The Washington Post by the Congressional Budget Office “the recovery could have other, less-beneficial effects, including higher interest rates. The government currently is benefiting from rates that are a fraction of their historic level, which means substantially lower borrowing costs for corporations and individuals, lawmakers said those low interest rates can’t last (Dinan, 2011).” The Obama administrations plan is borrowing more money, which is something other...