U.S. Debt Increases
Members of the U.S. Senate want to vote on a proposed amendment that would raise the national debt limit to $14.29 trillion that would be a $1.9 trillion dollar increase from what it currently is now. This measure has both pros and cons that will come into affect if it members of the U.S. Senate pass it. No studies have been conducted to see what the outcome will be or how it will affect our economy in the long run. Due to this fact lawmakers should wait and study this issue thoroughly before making a decision. They need to have all the facts available so that the Senate can make an informed decision on the matter.
The White house is stressing this issue because if something is not done about our increasing debt then for the first time in U.S history America will default on its debt. The global recession that has plagued us for the past two years, is causing us to raise the tax ceiling as a result of lower tax income and a boost in America’s spending. This is a result of people paying fewer taxes which is putting more money in their pockets for personal spending; thus less money is coming to the government to pay off its high debt. “Such an increase is critically important to make sure that financing of federal government operations can continue without interruption,” said The White House. This did not just occur in the past two years; just like the drastic decline in the economy did not occur overnight it was a progression of a slowly ticking time bomb that we could have prevented, with responsible spending and budgeting.
Public debt is also known as government debt. It involves the total amount of money that is owned by any government at a particular time as the government engages in deficit spending. Tax cut can be achieved through different ways. First, the government can cut its expenditure as the individuals increase theirs on commodities that are sourced from within, the government can maintain its ...
Since the year 1969 the treasury has been spending more money then it is bringing in. Causing them to have to borrow money to keep up with congress’s spending, they pay a huge amount of interest on the money that they borrow. All of these factors contributed to our current national deficit. Last year congress passed a short- term increase in the debt limit raising it to 12.39 trillion, after Senators led by Kent Conrad, chairman of Budget Committee refused to vote on the proposed long-term augmentation of the debt ceiling. They refused to vote on the issue until congress creates a commission to study possible deficit reductions. The Obama Administration negotiated a compromise to create a version of the panel by executive order. “A commission appointed by the president would be a back up, if Senate sponsors can’t get the votes to pass, what we think makes the most sense, a panel created by congress,” Kent Conrad told reporters.
If America had not been spending so much on the many social programs that we now have available due to the increase in poverty, government bail out, and the infusion of capitol into the many car manufacturing companies. I believe that Kent Conrad’s proposal to create a commission to study different approaches to reducing the national deficit is a smart start at a solution for the problem. We spend so much of our budget trying to help out other countries rebuild what they lost instead of focusing our efforts to reduce our own deficits. Before we tell other countries how to run their people and their governments we need to take a step back and take our own advice and help the United States of America first before we get involved in other countries business. We need to start spending our money more responsibly and not going over our budget. All of our extravagant spending has finally caught up with us and we now have to pay the price for our many mistakes. If this amendment gets passed it would be a mistake because it is doing nothing to fix the problem but putting a band-aid on it, hoping that we will be able to pay off the debt someday or that we will spend less next year.
Personal Saving For Children Money takes on a new meaning when there are children in the family. Parents realize the added pressure on the family's income to cover more wants and needs. They also feel and express a concern for helping their children develop healthy, positive attitudes about money. Attitudes and habits about money are learned at an early age. Very young children begin to learn ...