Introduction: Today our countries federal debt, also referred to as the “national debt” is more than twenty trillion dollars. A trillion dollars sounds like a really big number but seeing what 20 trillion dollars looks like is truly astonishing. Why does our national debt continue to grow? Why should we care? What can we do?
BODY
TRANSITIONAL STATEMENT: Our national debt continues to increase at an alarming rate: why haven’t we addressed it?
I. In FY2017 our countries obligations or outlays are 4.0 trillion and revenues are 3.3 trillion leaving us with a 666 billion dollar deficit. In simple terms our budget deficit is the difference between what the federal government spends and what it brings in revenue annually. Those deficits are paid for with …show more content…
$276 billion would go a long way in other areas rather than paying interest on the national debt.
2nd If the debt gets high enough the capital markets will notice and interest rates will rise
A. This will affect the interest we pay on our national debt as well as the interest we pay on our mortgages, car loans, credit cards etc.
3rd Inflation can become a problem
A. As our debt rises the U.S. Treasury department could turn to the practice of printing money which reduces the value of our debt but also reduces the value of our dollars. This is inflation.
4th High levels of debt can cause slower economic growth translating to fewer jobs and lower wages.
A. The Petersen Foundation agrees in an article written in Oct. 2014 ; A Strong Fiscal Foundation for Economic Growth, Our long term “national debt” threatens our countries fiscal foundation for economic growth.
5th The moral issue of running up our debt and passing it on to future generations is just wrong. Your generation and your children will have to face this problem in the future.
A 6th and perhaps the most important what will happen to our economy if we default on our loan? What will happen to the GLOBAL economy if we can’t make the payment on the
BODY
TRANSITIONAL STATEMENT: Our national debt continues to increase at an alarming rate: why haven’t we addressed it?
I. In FY2017 our countries obligations or outlays are 4.0 trillion and revenues are 3.3 trillion leaving us with a 666 billion dollar deficit. In simple terms our budget deficit is the difference between what the federal government spends and what it brings in revenue annually. Those deficits are paid for with …show more content…
$276 billion would go a long way in other areas rather than paying interest on the national debt.
2nd If the debt gets high enough the capital markets will notice and interest rates will rise
A. This will affect the interest we pay on our national debt as well as the interest we pay on our mortgages, car loans, credit cards etc.
3rd Inflation can become a problem
A. As our debt rises the U.S. Treasury department could turn to the practice of printing money which reduces the value of our debt but also reduces the value of our dollars. This is inflation.
4th High levels of debt can cause slower economic growth translating to fewer jobs and lower wages.
A. The Petersen Foundation agrees in an article written in Oct. 2014 ; A Strong Fiscal Foundation for Economic Growth, Our long term “national debt” threatens our countries fiscal foundation for economic growth.
5th The moral issue of running up our debt and passing it on to future generations is just wrong. Your generation and your children will have to face this problem in the future.
A 6th and perhaps the most important what will happen to our economy if we default on our loan? What will happen to the GLOBAL economy if we can’t make the payment on the