U.S. Deficit and Debt
This is an excerpt from the paper...
Within the past decade, America has fallen from the top of the Mount Everest into the Marianas Trench of debt. We have gone from the largest creditor nation to the largest debtor nation within only six years. It is surprising that, even with this mountainous debt, our economy is rolling through the longest peacetime economic expansion in U.S. history. How can the U.S. government continue to borrow hundreds of billions of dollars every year without affecting the economy? The truth is that it can not. The present relationship between the U.S. deficits and the U.S. economy is like the race between the tortoise and the hare. The U.S. economy has managed to stay ahead of the reces sion, but unless the government changes its attitude, the deficits will catch us and plunge us into a recession. In general, deficits and debts are not always detrimental, but the present sizes of the U.S. deficit and debt are extremely dangerous. If nothing is done to curb the enormous deficits, a major recession is imminent. The U.S. federal debt is three times as large as the 1979 debt of $827 billion aNd stands at more than $2.4 trillion. This multi-trillion dollar debt grew from enormous federal budget deficits which, at their peak, averaged $200 billion per year between 1983 and 1986. In 1988, the government had to borrow $155 billion to keep itself running in November and December. In 1987, the cost of the debt in terms of interest was $195 billion.
. . .
y and the enormous size of the deficits. If Japan and West Germany shift their money to other countries, the U.S. will be faced with skyrocketing interest rates and a severe decrease in investment. The decrease in investment will severely dampen economic growth. The already large deficits will increase greatly because of higher interest rates, which increase the interest payments on our debt, and the end of increases in revenues from growth in the economy. The deficits will send the economy reeling into a recession more severe than the 1982 recession because now the government is carrying an incredible debt burden, which will make impossible the finding of new money to continue such deficits. Former Chairman of the Federal Reserve, Paul Volcker, agreed that "budget deficits threaten to bring recurring turmoil to stock and currency markets and the kind of recession that would be most difficult to handle."
The question then arises: How long will the Japanese and West Germans continue to have faith that the American economy can function with such an enormous debt and continue to allow their money to flow into the United States. The United States is economically the most powerful country in the world, but the size of our deb
. . .
Some common words found in the essay are:
Mexico Argentina, Japanese Germans, Marianas Trench, Japan Germany, President Bush, Treasury Bonds, West Germany, Office Reagan, Congress President, Margaret Thatcher, foreign money, economic expansion, president bush, amount money, relative size, federal budget, effects economy, world report, york times, world almanac, hundreds billions dollars, relative burden debt, growth debt 2, japan west germany, negative effects economy,
Approximate Word count = 3051
Approximate Pages = 12 (250 words per page)
More Essays on U.S. Deficit and Debt
|
Customer Service
to Over
32,000 Professionally Written Papers!!!
