Saturday, June 22, 2019
An Assessment of the Impact of Government debt and Deficits on the Essay - 3
An Assessment of the Impact of Government debt and Deficits on the Economic Growth of United States - Essay ExampleReasons for current debt and deficit Basically, the public debt of the country refers to the borrowings that the administration does outside of the subject area budget (Huntington, 1996 Tombak, 2012) whiles the deficit refers to the amount of funds spent outside revenue extension. As seen above, an increasing pattern in the growth of national debt and deficit affects the economic growth of the country greatly because it stagnate the growth of the gross domestic product (Mearsheimer, 2001). Many maintain wondered why the debts and deficit have evolved in the pattern in which they have in the figure. First, experts blame misplaced national priorities as the major cause of the national debt size of the country. This is said in terms of spending more on non-revenue generative ventures (Waltz, 2010). Secondly, the United States have been blamed for taking up upon itself m ore responsibilities that it stick out take than the country can actually afford in the face of the international world. To this end, the country always has surpluses to deal with in its national budget. Finally, government social intervention policies are greatly blamed. Currently, statistics has it that Medicaid and Unemployment benefits alone could raise more than 12% of the size of the GDP if there were other viable means of ensuring that such interventions could be adjusted into proponents of revenue generation and empowerment for the populace (Mahar, 2009).