United States Budget Deficit Essay -- Research Economics American Hist

United States Budget Deficit Spending financed not by current impose receipts, and by borrowing or drawing upon past tax reserves. , Is it a good idea?Why does the U.S. run a famine? Since 1980 the deficit has grown enormously. Some say its a bad thing, and predict impendingdoom, others say it is a safe and stable necessity to maintaina well-grounded economy. When the U.S. government came into existenceand for about a 150 years thereafter the government managed to keepa balanced cypher. The only clock times a budget deficit existed duringthese first 150 years were in times of war or other catastrophicevents. The Government, for instance, generated deficits during theWar of 1812, the recession of 1837, the Civil War, the depressionof the 1890s, and homo War I. However, as soon as the war endedthe deficit would be eliminated and the economy which was muchlarger than the amounted debt would quickly absorb it. The last timethe budget ran a surplus was in 196 9 during Nixons presidency.Budget deficits have grown larger and more frequent in thelast half-century. In the eighties they soared to record levels. TheGovernment cut income tax rates, greatly increased defense expending,and didnt cut domestic spending enough to make up thedifference. Also, the dim recession of the early 1980s reduced revenues, raising the deficit and forcing the Government to spend much more on paying interest for the national debt at a time when interest rates were high. As a result, the national debt grew in size after 1980. It grew from $709 billion to $3.6 trillion in 1990, only one(a) decade later. ... ...abilities, and deficit money is beingwasted. For example two of the largest portions of the budgetdefense and social tribute. Defense spending produces little ornothing provided in times of war. Judging by the current status ofthe United States as the only existing Nuclear Super Power war is not a tangible event in the near or distant future. The way social security is managed creates a huge waste. As managed, social security is money spent to immobilize a large and fairly capable part of the work force. It encourages elderly people not to work by spending deficit money on them. Reducing productivity and increasing the debt at the same time. In its current state the U.S. should attempt to reduce its deficit but eliminating it is not necessary and could do more damage than good.