1). What must be done? Notwithstanding any decision on taxes, Odland insists that government spending must be cut.
Meanwhile a January, 2013 article in the respected Guardian publication shows that the federal debt ceiling has gone up from "…an unimaginable $14.3 trillion" in August, 2012, to "$16.394tn as part of a package agreed then" (Rogers, 2013). The debt ceiling has not received a great deal of attention in the past but recently Republicans have demanded that the White House agree to severe cuts in the federal budget in return for their willingness to agree to a raise in the debt ceiling. It is what some writers have called a "manufactured crisis" in Washington -- conservatives trying to force the hand of Obama -- but meantime are the Democrats the worst budget managers when it comes to raising the debt ceiling? Not really, Rogers explains. Republican presidents have raised the debt ceiling 54 times and Democrats have raised it 40 times; Ronald Reagan leads all presidents in raising the debt ceiling; he did it 18 times. Jimmy Carter and Lyndon Johnson did it 10 times (Rogers, p. 2).
In conclusion, how does the massive deferral debt affect citizens? In the short run, "the economy and voters benefit from deficit spending" (Amadeo, 2012)....
The continued investment of China in U.S. Treasury notes and bonds, as well as the private investment of Chinese wealth in U.S. businesses, helps to fund government and business activities in the U.S., sustaining both social programs and economic growth in the country. This is an incredibly short-term view of the situation, however, and does not take into account the eventuality of China recalling its debt from the United
The 2016 Presidential Campaign and the National Debt The presidential race between Hillary Clinton and Donald Trump has had more than its fair share of scandals -- from Clinton's email server, the "rigged elections" as reported by undercover agents of Project Veritas, and the Clinton Foundation's pay-to-play controversies -- to Trump's lewd comments on women, his own reluctance to publish his taxes, and the nearly $1 billion loss deducted from his
However these effects have limited implications in the real life, their magnitude will increase exponentially during the next years, provided, of course, that the same trend is preserved in the detriment of reducing the debt. In such case, the now young generation will be faced with the disastrous outcomes of an uncontrolled federal debt. Besides the negative impacts a large debt would have upon the economic and political backgrounds, the
When the economy suddenly has more money circulating around there is the threat of inflation. "The Federal Reserve is expected to hold its main short-term interest rate at a 45-year low of 1% at its last meeting of the year in December, as well as into part of 2004, economists predict. Holding short-term rates at such low levels might motivate consumers and businesses to spend and invest more, something that
Debt vs. equity financing As its name implies, debt financing involves borrowing money from a bank, individual, or company, with a promise to pay back the principle with interest. Any organization can make use of debt financing, spanning from a small single proprietorship to a large multinational. The owner of the business retains control over the organization and the only responsibility he or she has to the lender is to make
Because of this, the Outer Banks - barrier islands off the coast of North Carolina - often did not get timely weather information. The hurricane of 1944, which hit the Eastern coast from Cape Hatteras all the way up to Newfoundland, resulted in a major loss of life and significant damage on the Outer Banks (4). The United States, because of its climate, has experienced numerous devastating tornado outbreaks and
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