National Debt Analysis

Throughout the last few decades, the national debt has become an issue of dissent for politicians. Conservatives have continuously pushed for a balanced budget. With a stance of lowering taxes, opponents dispute how fiscal conservatives can actually balance the budget, as it is difficult to balance the budget while also lowering taxes. The loss of tax revenue, without economic growth, puts more pressure on the government to fund programs and expands the debt required to fund current government spending. However, according to the economic theory – the Laffer Curve – proposed by Chicago economist, Arthur Laffer, it is possible that a decrease in taxes for businesses and citizens could theoretically cause a reaction of business entrepreneurship …show more content…
Politicians spend the most time arguing on how the government should collect taxes. However, society should first be truly informed of where the tax revenue is going and why. In addition, politicians should be trying to finds way to dedicate society on the topic. Furthermore, citizens should know the impact the national debt has on the economy, both nationally and locally. In regards to Millennials, the perspective in which the article is being written, what significance does the national debt have on Millennials, does the national debt: “bankrupt our children”, as politicians say; the answers lay in the …show more content…
Republicans will state that the national debt has nearly doubled under President Obama, while Democrats state that President Obama inherited a bad economy and that it was under President Bush that the national debt increased to 10.6 trillion dollars before he left office. The current US debt predicted for the end of the 2016 fiscal year is 19.3 trillion dollars. The national debt is the combination of every fiscal year’s deficit. Deficits occur when government spending is greater than government revenue, most of which is from taxes. The impact of these deficits occurs when the government must come up with the money to fund deficits. Although congress makes the budget appropriations from the President’s proposal, the Department of the Treasury is charged with the task to raise the money to fund spending. The Department of the Treasury acts as the government bank, when deficits occur the Treasury must borrow money. Many people falsely believe that the government just prints out money; in actuality, the Treasury raises money through the issue of United States Treasury securities. These securities are debt instruments (T-bills, bonds, and notes) that private individuals, corporations, and large investors, both foreign and domestic, buy due to the securities relatively risk-free investment and liquidity, or ease of selling if in need of cash. The interest the Treasury owes to investors is