Eco/372 Week 1

Deficit spending refers to government spending that exceeds federal income and taxes over a period of time. The government can increase borrowing to obtain money from taxes or from foreign governments. The money that is borrowed is then put back into the economy through government spending. While deficit spending will increase government debt, it is believed to stimulate the economy to end a recession. Deficit spending has several advantages and disadvantages to government borrowing.

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 Social Security and Medicare and if these large, growing programs, or just the budget in general, do not undergo financial reform it could spell disaster for the economy and fiscal state of the nation.

I think that any budget cuts that could be made would have an impact on someone’s life. It would be hard to cut a budget, without effecting a group of people. I think that it is hard to say which cut has the most impact on people’s lives, because I think they all do. I think that if Medicare, Social Security, and Health were cut they would have an extremely negative effect on people’s lives. I think those being cut would impact people’s life the most, especially the baby boomer generation. From the cuts I made I believe that cutting natural resources, and environment gave me the biggest help on reducing the deficit, because there was a large amount of money allotted to this budget and I cut it pretty severely. I think that if it was an option on the game, cutting national defense budget a little could help reduce the deficit, because it is the highest source of spending in the national

The Federal budget deficit is the amount of spending by the Federal government that is in excess of how much money the government brings in annually. While the Federal budget deficit has steadily decreased overall during the past fifteen years, our Federal debt continues to grow at a drastic rate. A review of how the Federal deficit has evolved over the past fifteen years, the rate of growth of the Federal debt during that same period, and how the two are connected will better explain this phenomenon.

We have a long story of debt, but it seems no one has been able to make it better. If the debt is increasing over time, the government has a budget deficit. Charles C. Turner, et al, defines the deficit as spending that exceed a revenue (482). In history, basic deficit or debt was usually from over spending from a war and economic issues like a recession or depression. Then the government had a budget deficit almost every year “between 1970 and 1997,” but the tax cut and more spending on defense by President Reagan in 1981 added more growth to the deficit. Also, another cause is from reducing of productivity seem in the GDP and lower tax rate (tax cut) (483). Even when the government had some budget surplus, still, it could not cover the debt. In 2012, the debt grew “over $ 16 trillion,” (482-483) and has increased more in recent year plus “2.9 percent” of the budget deficit in 2016 (The 2016 Long Term Budget Outlook, 2). To manage the economic depression, sometime policymakers cut the taxes and increase spending again by putting more money into the private sectors (Turner, 483); therefore, government goes further with the budget unbalancing. There are several reasons that lower the tax rate will not reduce the budget deficit closer to a balance.

Hello, Caitlyn. I personally believe a balanced budget amendment would be in order considering politicians refuse to stop the spending. The reason I would call for a balanced budget amendment is because of Greece. After seeing the mess Greece is in, along with a myriad of many other European countries, I believe national debt is not manageable because the government will continue to spend more than they take in taxes. The Grecian government refused to reform their entitlement programs, so they went into default. The U.S. needs to reform our spending before we head down the same path of self-destruction.

Creating economic growth is the key; one of the biggest advantages for deficit spending is the anticipated growth. New programs and investments get set in place to help train for higher income jobs, investments are made to create new jobs and a greater work force. Makes firms and companies

In my opinion, the government should balance the budget. Ideally, government spending not exceed income rather than continue borrowing to balance the current budget. We all know that the economy is constantly changing and therefore the government can’t expect that the actions were carried out based on past situations, help balance the current budget or the current problems of the economy.

With the United States increasing with federal debt of $14.2 trillions dollars, it was proposed that a balance budget should be amendments to the Constitutions. The balanced budget amendment (BBA) was failed at the House on November 18, 2011 with it didn’t reach a two-third majority by 23 votes. The last time the house voted on the BBA was since 1995, when it was one vote short in the Senate. Also there been states that have of a balanced budget amendment into their constitutions and there are many version of how to budget. But if it were to pass we can expected a restrict growing government, save the AAA rating and low interest rates, and accountability on politicization on focusing on how to govern.

Therefore; giving the government more money to spend on different governmental agencies that are in need of the extra cash flow. Not only would it give us more money for other departments but it would also keep

Cutting spending hurts America for many reasons, it takes away people's needs, it hurts the poor and it only helps the rich.

This creates a budget deficit because the government is spending far more than they are bringing in.

What if we simply used the funds to help decrease our own borrowing or even better, used the funds to support our own social programs, programs meant to empower the people instead of degrading them.

Government spending has been a major concern for numerous years. Many individuals believe the United States is the land of opportunity and the most powerful country in the world, but we're heading into another potential financial crisis. The U.S. has currently exceeded twenty trillion dollars in national debt from fighting unnecessary wars, economic stimulus packages, tax cuts, wasteful spending and lastly, government corruption. Although there is transparency in where taxpayers funding is allocated, I believe more accountability is needed within our government. If the United States continues adding to its enormous debt, we could also experience a credit default. If the U.S. were to default for example, the value of the dollar would drop, interest rates would rise causing inflation and for these reasons, it could lead to another recession. While some policymakers believe increasing taxes is the solution to our debt concerns, the government needs to cut spending and eliminate deficits. Many economists claim that cutting spending will only hurt the economy, but it has been attested spending cuts would shift resources from mismanaged government programs to more productive private activities, furthermore increasing the overall gross domestic product. I believe the government needs cuts within public spending in order to reduce the national debt.

Fourthly I would spend 11% on Resources and Environmental Protection. Our environment is very important, if there is no Mother Earth then there is no life and the lack of care to our planet, and to its natural resources on a higher scale, from the POTUS for example, it’s unimaginable. In California we’ve had major catastrophes like the 1969 Santa Barbara oil spill, the 1989 Exxon Valdez oil spill, the Aliso Canyon gas