Essay On Federal Deficit

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The Federal Deficit How does the federal deficit affect us?. Unfortunately, The U.S Government is going through difficult times dealing with an enormous debt, which is around sixteen trillion by now and it is expected to rise up to twenty two trillion dollars by 2016. Perceiving or determining how that debt affects your daily life might be hard or you might even think that it does not affect you, but it does affect every single person living in the U.S and even foreign countries, even if it is little by little. Below, how the federal deficit affects you and a good solution to stop the federal deficit from increasing is explained. First of all, the federal deficit is like any other type of debt, which in this case, the debt is produced because the government's expenditures exceed its tax revenues and the reason this happens is that the Government borrows money. The U.S Government mostly borrows money from individuals, institutions, the Social Security Trust Fund and foreign countries. According to an article in 2011 by George Eaton the major foreign holder of the U.S Debt is China. The government gets money from taxes and spends money in medicaid,…show more content…
And even many people in foreign countries. It would be great to get rid of the debt by quick and simple solutions, but unfortunately debt is really sticky and you can’t get rid of it that easy. It takes time and a lot of effort, But at the end, it will be worth it. Now, by looking at the pros and cons of each solution, you can decide which one fits your needs because at the end every single one of us have a different way of thinking and different needs. It might happen that you do not want to work or you are fine just the way things are right now, but it would be great to know that most of the people do not make biased decisions and really sit to think every option available to make the right

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