National Deficit Research Paper

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Running head: Negative Effects of the National Deficit Negative Effects of the National Deficit The strength of the United States economy is a crucial element in the level of peace and security felt by American citizens. When the nation is experiencing periods of strong economic growth and prosperity, it lends a sense of well-being to Americans. Conversely, when our country is experiencing periods of economic difficulty and uncertainty, that leads to concern regarding personal finances. The United States is currently in the midst of a recession that is, like all such periods, multifaceted. There are numerous circumstances that experts point to as issues responsible for the economic downturn our nation is experiencing. These include the credit crisis; sky-high foreclosure rates that in many cases resulted from sub-prime lending; near double-digit unemployment figures; and personal debt that has skyrocketed out of many families’ financial control. It is important to understand the causes of our nation’s current economic crisis so that steps may be taken to overcome it and prevent another similar situation in the future. For many economists, the…show more content…
Adam Smith said The Wealth of Nations in 1776, “Sugar, rum and tobacco are commodities which are nowhere necessaries of life, which are become objects of almost universal consumption, and which are therefore extremely proper subjects of taxation.” This quotation was the beginning of an article that recently appeared in the New England Journal of Medicine in which an argument was raised supporting the taxation of Coke, Pepsi, Gatorade, Red Bull and any other sugar-sweetened beverage. The so-called logic behind this suggestion was that it would combat obesity, quickly being described by some health care professionals as the leading health risk in the United States. (Leonhardt,
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