+ 1-888-787-5890  
   + 1-302-351-4405  
 
 
 
 

Essay/Term paper: Budget deficit & national debt

Essay, term paper, research paper:  Essays

Free essays available online are good but they will not follow the guidelines of your particular writing assignment. If you need a custom term paper on Essays: Budget Deficit & National Debt, you can hire a professional writer here to write you a high quality authentic essay. While free essays can be traced by Turnitin (plagiarism detection program), our custom written essays will pass any plagiarism test. Our writing service will save you time and grade.

The purpose of this paper is to discuss the short- and long-term effects of current budget deficits and the nation debt. In order to do this; I first had to find out exactly what they were. I will also discuss whether I think the government should operate with a balanced budget.



Budget deficit is the amount by which total government spending is more than government income during a specified period; the amount of money which the government has to raise by borrowing or currency emission in order to make up for the shortfall in tax revenues.



National debt denotes the total sum of the outstanding debt obligations of a country's central government. I discovered that many people use the term somewhat more broadly to refer to the total indebtedness of all levels of government, including regional and local governments and sometimes also the indebtedness of government owned business entities such as local transit and communications systems or nationalized industries as well. The national debt represents the accumulated total of all the government budget deficits of past years, less the accumulated total of all the government budget surpluses of past years. In the United States, the national debt consists almost entirely of interest-bearing "IOU" instruments that are usually re-sellable on organized financial markets such as, for example, U.S. bonds, U.S. treasury notes, and U.S. treasury bills. These IOUs are originally purchased from the Treasury by private individuals, private corporations, insurance companies, pension funds and banks (both inside the United States and outside its borders), and the Treasury then uses the money it raised to bridge its spending gap when its budget is in deficit. The Treasury also sells IOUs to other Federal agencies that operate so-called trust funds -- primarily the Social Security Administration and other Federal retirement programs. The complication here is that since this is money that the government "owes to itself," it is not counted as part of the national debt in any realistic system of accounting. I find this to be really strange. Money to pay the annual interest owed to the owners of the government's debt instruments has to be provided through appropriations in every year's Federal budget. These interest payments on the national debt constitute as one of the largest spending categories in the budget.



Gross Domestic Product (GDP) is an estimate of the total money value of the entire final goods and services produced in a given one-year period using the factors of production located within a particular country's borders.



Running budget deficits has been a primary method for stimulating economies that have high unemployment rates. Many articles that I read indicate that the budget should return to balance or surplus during boom times. "The Reagan administration discredited this notion, cutting taxes to such a degree that the United States would face perpetually high deficits, regardless of how hot the economy was," according to economist John Maynard Keynes.



The answer does not appear to be a balanced-budget amendment, unless you want to prevent the federal government from fighting recessions. This would just make things worse, because then the federal government would be forced to make recessions worse. When the economy slows down, income and Social Security tax revenues drop, due to falling wages and profits. Meanwhile, costs for some programs, such as unemployment compensation, rise.



These changes automatically put the federal budget into deficit, even if a balanced budget had been planned at the beginning of the fiscal year. If a constitutional amendment requires the government to balance spending and revenues at the end of the year (not just in the original plan), then the White House would be forced to cut spending or raise tax rates. This would then slow the economy down, just at the time when it is most in need of stimulus.



The Balanced Budget Constitutional Amendment, Center on Budget and Policy Priorities, January 9, 1995 states that in 1962 the federal budget was $100 billion and it doubled by 1971. It doubled again by 1977 and again by 1983. It then doubled again in 1997. It also states that this year the federal government will spend $240 billion just to pay the interest on the federal debt.



Another interesting statistic found is that a child born this year will have to pay $187,000 in taxes to pay his share of the debt. Because of the federal deficit's effect on families, they'll only make an average of $35,000 a year instead of the $50,500 they'd make without it.



According to the "U.S. NATIONAL DEBT CLOCK" the outstanding public debt as of 17 Aug 1999 at 09:12:14 PM PDT was $5,635,435,597,521.14. With the estimated population of the United States at 273,277,316 each citizen's share of this debt is $20,621.67.



The National Debt has continued to increase an average of $202 million per day since August 31, 1998. It is currently $3.6 Trillion. I personally do not think that we should even entertain the notion of operating with a balanced budget. Why, you may say - because my limited knowledge of this subject indicates to me that the government has always overspent and in incapable of pulling in the purse strings.

 

Other sample model essays:

There are many different campfire structures that can be built to start a fire while camping. The most common are the teepee, log cabin, dugout, and tunnel structures. Almost anyone can build...
GENERAL BACKGROUND INFORMATION We are not a democracy, yet we do have a voice in our own government. Elections are the choice microphones for many citizens. There on Election Day, they have the ...
Campaign Funding By: Matt E-mail: imacakeboy@aol.com What We Don"t Know About Campaign Finance Does Hurt Us. "No matter what your social issue, if you want to solve it get the money ou...
Canada's copyright law is one of our hardest laws to enforce. The reason the police have so much trouble enforcing this law, is due to technology. This law is very easy to break, and onc...
Essays / Canada
Canada Hi my name is insert your name and I"ll be writing about Canada. Canada is the greatest country in the world and it has been voted the best country in the world to live in for the past...
The Undermining of the Canada Health Act Samantha Descoteaux University of Alberta Nurs 395 Abstract...
The first Canadian Indian Act was issued in 1876. Though it has been revised numerous times, this hundred and thirty year old legislation has been left virtually unchanged. Established...
Capital Punishment on Trial Capital Punishment is an issue that has been argued over from the dinner table in the average American home the the oval office in the White House for countless...
Capital Punishment There once was a man, long ago, that was sentenced to death for crimes the government said he had committed. He was not a murderer or a thief. He wasn"t a rebel he was just ...
Cardiovascular diseases include a wide range of heart abnormalities, as well as diseases of other parts of the circulatory system, such as the coronary arteries, ther cerebrovascular system, the ao...
Experience with Dream Essay - Reliable and great customer service. Quality of work - High quality of work.
Browns Mills, New Jersey, United States
Dream Essay - Very reliable and great customer service. Encourage other to try their service. Writer 91463 - Provided a well written Annotated Bibliography with great deal of detail per the rubric.
Browns Mills, New Jersey, United States
it is always perfect
Frederick, Maryland, United States
The experience with Dream Essay is stress free. Service is excellent and forms various forms of communication all help with customer service. Dream Essay is customer oriented. Writer 17663 is absolutely excellent. This writer provides the highest quality of work possible.
Browns Mills, New Jersey, United States
Only competent & proven writers
Original writing — no plagiarism
Our papers are never resold or reused, period
Satisfaction guarantee — free unlimited revisions
Client-friendly money back guarantee
Total confidentiality & privacy
Guaranteed deadlines
Live Chat & 24/7 customer support
All academic and professional subjects
All difficulty levels
12pt Times New Roman font, double spaced, 1 inch margins
The fastest turnaround in the industry
Fully documented research — free bibliography guaranteed
Fax (additional info): 866-332-0244
Fax (additional info): 866-308-7123
Live Chat Support
Need order related assistance?—Click here to submit a inquiry
© Dreamessays.com. All Rights Reserved.
Dreamessays.com is the property of MEDIATECH LTD