The Federal Debt Explained

One of the bigger issues facing our country today is the increase in the amount of the federal debt that has been accumulating during the years that President Bush has been in office, as a result of deficit spending. President Bush had inherited a budget surplus from President Clinton, but as he prepares to leave office, the United States finds itself in a budget deficit and in a dire financial situation. The national debt has grown for a number of reasons, but results significantly from the cost of the war in Iraq and the Bush tax cuts. This situation needs rectifying, so that future generations of Americans will be able to achieve the same level of success and prosperity as past generations.

Going to war in Iraq has proven to be a highly controversial decision. Some Americans believe that we went to war on false information and that we should never have invaded Iraq. Instead, we should have maintained the focus on Afghanistan and finding Osama Bin Laden. Others believe that the United States should stay in Iraq, perhaps for a long time. The presidential candidates have voiced their views on this monumental issue, reflecting both points of view. Both Hillary Clinton and Barack Obama want to get the United States out of Iraq within a certain set timeframe, while John McCain supports staying in Iraq. Though there are differing viewpoints on whether the United States should stay in Iraq, no one disagrees that this war continues to be costly—hundreds of millions of dollars per day. Ultimately, it may cost the United States over one trillion dollars (msnbc.com). The money has to come from somewhere, and this need for money has contributed significantly to the rising federal debt. For people who disagree with this war, this increase in the debt cannot be justified.

Additionally, the national debt has increased significantly because of the enactment of President Bush’s tax cuts. Over this time period, the wealthiest Americans (the top 1% of the United States) are expected to receive large tax cuts. Taxes may not be liked by the constituents of politicians, but they serve a necessary purpose. The money the government gets from taxes is needed to cover the costs incurred by the government. With the government’s revenues declining as a result of these tax cuts, the country has had to accumulate more debt. The money that funds the federal government comes from the taxpayers. Therefore, the huge tax cut passed in 2001 has also led to an increase in the national debt.

Though this situation involving deficit spending and increasing the national debt needs to change, it currently shows no signs of changing. The cost of the war in Iraq continues to grow and the 2001 tax cuts are still in place. Although Congress will have an opportunity to not extend these tax cuts, those in Congress might be concerned that raising taxes will cost them their elected positions. With spending exceeding revenues, the federal government has been operating at a deficient and this deficit has forced the government to borrow more and increase the national debt. These actions will have negative repercussions that will affect this nation for years to come. When President Bush leaves office, the next president will inherit these grim economic circumstances and will have to make some brave, difficult, and perhaps unpopular decisions to try to eliminate the deficit spending and reduce the national debt in order to help future generations of Americans.

Works Cited

Moran, Michael. "Total Cost of Iraq War Hinges on Oil Question." MSNBC.com 18 Mar 2008 16 Apr 2008 <http://www.msnbc.msn.com/id/23638400/from/ET/>.