Budget Deficit vs Japan's Essay

407 WordsAug 7, 20122 Pages
US Budget Deficit and Government Debt vs. Japan’s The United States Budget Deficit and government debt is skyrocketing and almost exceeding $1 trillion dollars. In context of macroeconomics and the United States economy, the definition of debt is the total amount the government owes while the definition deficit is how much one spends compared to how much that person earns. For the United States, the budged deficit is nearly $60 billion dollars and on track to exceed $1 trillion by the end of the year. The United States government debt is currently at $15.8 trillion dollars. This national debt has continued to increase an average $3.92 billion per day since September 28, 2007. Based off of the assigned video, plethora amounts of people dislike big governments because of taxes; this includes income tax, Medicare, tariffs and international trades. The government has two types of spending, Mandatory and Discretionary spending. Mandatory spending goes towards entitlement programs, social security and interest payments the government has to make. Discretionary spending is at the discretion of the Congress, where the money can be divided up into however they want. Mandatory spending constitutes 70% of the federal budget while discretionary constitutes the remaining 30%. In comparison to Japan’s budget deficit and government debt the United States is still higher; however, Japan is right under the United States with the second highest government debt in the whole entire world. In comparison, the United States debt is roughly 100% its GDP, the market value of all final goods and services produced within a country each year. Surprisingly, Japans debt is 200% of its total GDP. This could result from many issues, some of which include military spending, immigration, and their tendency to purchase their own products. Unlike the United States, Japan is a homogenous society that

More about Budget Deficit vs Japan's Essay

Open Document