Essay on The National Debt

1564 Words 7 Pages
Every day in New York City, hundreds of people walk past a huge digital billboard with giant numbers across its face. Each person who walks past this billboard sees a slightly different arrangement of numbers, growing larger every second. This board is the National Debt Clock, representing the over 14 trillion dollars currently owed by the United States. While some people claim that the national debt is caused by the falling economy, most maintain that the debt itself causes the poor economy (Budget Deficits 2007). Rising debt leads to higher interest and investment rates, and cuts into our national savings. Ignoring the national debt leaves the major burden of paying it off to later generations, while meanwhile allowing our country’s …show more content…
However, nondiscretionary spending on programs such as Medicare, Medicaid, and Social Security means that the government must continue to spend incredible amounts of money each year, which does nothing to improve the state of the national debt. Additionally, in 2001, George W. Bush passed his highly controversial tax cuts- though the budget was in surplus, it was projected to drop to deficit for several years soon after 2001. Bush’s tax cuts were supposed to stimulate the economy, but it slumped despite his hopes for economic growth. By 2003, the budget deficit was at record highs, as Bush’s tax cuts proved ultimately ineffective (Budget Deficits). The problem of national debt has only worsened with time. The recession means fewer jobs, lower incomes, and lower taxes being paid to the government. The September 11 terrorist attacks cost the government unprecedented amounts, and the War on Terror has only added to these costs. Since then, a faltering economy has increased the budget deficit. In 2011, President Obama attempted to approve a raise in the debt ceiling, the maximum amount of money that can be owed by the government. On May 31, the House of Representatives denied this raise by a vote of 318-97. If the debt ceiling is not raised, the United States government will not be able to borrow any money to keep itself running, which will be devastating to not only the US economy, but to the global economy as well. However, “GOP leaders, who campaigned in

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