Budget Dialogue at American University

American national debt has been largely ignored by politicians. The divide between rich and poor is already growing and I fear that the national debt crisis will only increase its growth. Without immediate action, I predict that the standard of living for my generation will sharply decline and important federal programs like Medicare and Social Security will be substantially cut back.

As of April 2008, the U.S. federal debt is approximately $9.5 trillion. This is $31, 100 for every U.S. resident. Especially since the 1980s, the U.S government has been spending more than their yearly budget every year. To cover the deficit, the U.S. government issues a new debt. Current debt of $9.5 trillion is the all-time high and is 9 times more compared to 1980s.

When Professor Yarrow told us at the beginning of the semester that we would be participating in a U.S. Budget Exercise, I honestly didn’t know what to expect or think that it be as helpful and informative as it was. Our generation is focused on instantaneous technology, social networking, blogging, digital media, and so on.

The threats facing the American economy are represented in the state of federal budget; they are not caused by it. Such is the blessing and curse of living in a representative republic. The government is made up of the people and they carry with them to government service a reflection of our society’s values. Living beyond our means is deeply ingrained in American culture.

One would be hard-pressed looking for someone who does not believe the U.S. economy is headed in the wrong direction. Despite this unanimity, there is not a clear consensus to get our economy back on track.

Prior to this discussion in class, I was extremely uneducated about the national debt situation. As much as I realize it is important to be knowledgeable in the debt crisis, as well as other national government problems, I felt overwhelmed by the subject. Because I have no economic or government background, I have never even had the basics explained to me.

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.

How and why has the U.S. government debt grown since the 1980s and is projected to grow so rapidly in the next 20-30 years, if no spending and tax reforms are implemented?

In every day life, the average citizen does not recognize the importance of the national budget. Seemingly, government spending does not affect the daily lives of citizens.

The finances of the United States are in need of reform. National debt must be reduced in order to restore a healthier economic future for individuals living in the United States. Currently, Social Security is funded by payroll tax and is the largest government funded program in the world and the largest expense in the federal budget.

U.S. government debt has grown since the 1980s due to a simultaneous tax reduction during the Regan administration and the increase in military spending during the last years of the Cold War. Regan believed that less intervention of the government would boost the economy, because people would have more incentives for developing as entrepreneurs. These beliefs were referred by George H.

Balanced Budget Amendment: Create an amendment that would eventually require that no entitlement spending, discretionary spending, and payment on the interest, in any given two year period (1st and 2nd session of Congress), should excide inlays during that same period.