Macroeconomics for Business Debt Sustainability

Federal debt has been increasing for at least the past ten years. Currently, federal debt is $19,929,184,161,352.13 (Chantrill). The national debt has nearly doubled throughout Obama’s presidency and President elect Trump’s ideas do not look promising for change. It is estimated that Trump’s tax cuts will raise federal debt by $7.2 trillion within the next decade (Mauro). Many debt crises have occurred because of declines in growth. When

The year the debt percentage of the GDP achieved record highs was 1946, at 106.1. (Get Involved 2015). The debt will reach that share of GDP again in approximately 2031 (Get Involved 2015).

In 2009 the debt was amounted to about $12 trillion , or 83.4 percent of the country’s GDP (“Budget of the United States Government: Historical Tables Fiscal Year 2011” table 7.1). Since 2003, the debt has been increasing by more than $500 billion annually. The increase in 2009 was $1.9 trillion. According to the Congressional Budgeting Office, this debt will keep increasing at least for the next decade (“The Budget and Economic Outlook : Fiscal Years 2010 to 2020” 21).

Whenever the topic of the American Economy is mentioned the first thing that pops in our heads is,”debt”. The debt of the U.S. has been a controversial topic for years now, especially in our politics. The U.S. debt as if now is 18 trillion dollars, but we didn’t always have this debt.

The debt in the United States has been growing for decades and has accumulated all the way up to 19.9 trillion dollars. This amounts to 61,036 for each person living in the U.S, 157,735 for each household, 104 % of the U.S gross domestic product, and 546% of annual federal revenues. Tackling debt and deficits is a national security issue that affects our ability to compete in the international system. The proportion of U.S. government debt held by foreign entities has significantly increased.

I think that my idea is much better because it will free up funds that could be reallocated where it is needed such as healthcare expenses. These issues really need to be addressed and reevaluated and something needs to be done immediately. It will never be practiced because the politicians will not reduce their income and we will continue seeing cutbacks from our veterans, elderly, and disabled populations.

The current economic event on the increase in the National government debt has become of interest to the public and the decision makers. This paper looks at the economic event as per Stephen Dinan’s article in The Washington Times dated on June 16, 2015, in regards to the impact of the increasing national debt to the general economic growth in America. The proportion of the United States ' National debt is increasing in comparison to the National GDP. It is evident from the past years that the United States ' Treasury has been borrowing a lot of funds from its citizens and foreign investors to help fund wars promote the economic development of the country, and save the financial systems as well. This paper will explain and demonstrate an in-depth economic analysis of the USA National debt vital to cope up with this worrying trend in the economy.

The Congressional Budget Office (CBO) projects that interest payments on US debt will increase from 1.2% of GDP in 2009 to 3.9% in 2020, which could significantly dampen GDP growth. Mankiw projects that the current deficits have already reduced national income by 3 to 6 percent, which could conceivably increase in the years to come.

The ratio of government debt held by the public to current dollar gross domestic product is 70 percent but the ratio of total debt including intergovernmental holdings to GDP is 102 percent (Bureau of Economic

From the graph above, for instance, we could say that the budget deficit increased rapidly from 2007-2009 and we could say that the main is due to the Great Recession. The governments act trying to counter-attack this effect by improving fiscal policy for the betterment of business cycle lead to more outlay than revenue, which resulted in the increase of the deficit promptly. So, therefore borrowing the money to deal with deficit lead to increase in the national debt.

The debt rose fifty percent between the Spanish-American War era of 1893 and 1899. In World War I, the debt increased another twenty-one-fold between 1914 and 1919. The debt increased an additional six-fold during the World War II period of 1939 to 1946. At the end of World War II, the national debt was $260 billion, equal to 128 percent of the Untied States Gross National Product (GNP) (Wieczorek).

Over prices the income would rise from a 29% from today. There was a long run problem and when they show the history of the U.S. it seems to be falling instead of raising. There was long deficits over 38 years preceding financial problems. The GDP that went down and probably started up was from financial crisis. The survey of the government debt was organized into sections. In the twenty-first century section II had the effects of the debt. According to the view of issuance debt simulates growth. Data from the united states, percentages of gross domestic product risen over the past, two centuries. Many purposes debt has all levels of the government. The cause of this is the united states. The debt rose when the great depression came. The most sharp between 1945 and 1975 growth of gnp exceeded the rates for government debt. The status of security is crucial to future policy’s. The income for accounts are part of the federal outlays. Social security in about fifteen years will rise about two percent. The conditions are expected to cause programs. If the insurance for medicare is considered then it would rise four percent. The government finance system allows OASDI

Not only is humanity continuously following a natural cycle on a grand time scale, but also smaller aspects of everyday lives follow a similar pattern. This poem relates the the cyclical nature of single human life to the cyclical nature of the economy. This poem demonstrates how the progression of life follows a pattern and how a smaller aspect, the economy, also follows a patterns that can relate to each other.

The Eurozone is facing a serious sovereign debt crisis. Several Eurozone member countries have high, potentially unsustainable levels of public debt. Three—Greece, Ireland, and Portugal—have borrowed money from other European countries and the International Monetary Fund (IMF) in order to avoid default. With the largest public debt and one of the largest budget deficits in the Eurozone, Greece is at the centre of the crisis. The crisis is a continuing interest to Congress due to the strong economic and political ties between the United States and Europe.

Although a commonly accepted view is that the hidden budget deficit in Greece is the beginning of the European sovereign debt crisis, the real causes of this economic crisis can be various. To reveal the whole event, a comprehensive review of the background is