Verified Document

Biggest Challenge Facing The U.S. Term Paper

1). What must be done? Notwithstanding any decision on taxes, Odland insists that government spending must be cut. Meanwhile a January, 2013 article in the respected Guardian publication shows that the federal debt ceiling has gone up from "…an unimaginable $14.3 trillion" in August, 2012, to "$16.394tn as part of a package agreed then" (Rogers, 2013). The debt ceiling has not received a great deal of attention in the past but recently Republicans have demanded that the White House agree to severe cuts in the federal budget in return for their willingness to agree to a raise in the debt ceiling. It is what some writers have called a "manufactured crisis" in Washington -- conservatives trying to force the hand of Obama -- but meantime are the Democrats the worst budget managers when it comes to raising the debt ceiling? Not really, Rogers explains. Republican presidents have raised the debt ceiling 54 times and Democrats have raised it 40 times; Ronald Reagan leads all presidents in raising the debt ceiling; he did it 18 times. Jimmy Carter and Lyndon Johnson did it 10 times (Rogers, p. 2).

In conclusion, how does the massive deferral debt affect citizens? In the short run, "the economy and voters benefit from deficit spending" (Amadeo, 2012)....

But in the long run deficit spending is like driving a car with "…the emergency brake on, further slowing the economy" because debt holders (who purchased U.S. Treasury bills) demand "…higher interest payments to compensate for what they perceive as an increasing risk that they won't be repaid" (Amadeo). The federal debt is an enormous drain on the economy and will continue to be a drain until Congress and the executive branch figure out a way to cut spending at the same time they are increasing revenue coming into the Treasury.
Works Cited

Amadeo, K. (2013). The U.S. Debt and How it Got So Big. About.com. Retrieved June 2, 2013, from http://useconomy.about.com.

Blodget, H. (2012). Here's the Biggest Problem in the American Economy. Business Insider. Retrieved June 2, 2013, from http://www.businessinsider.com.

Odland, S. (2012). My Top 10 Economic Worries. Forbes. Retrieved June 2, 2013, from http://www.forbes.com.

Rogers, S. (2013). U.S. debt ceiling: how big is it and how has it changed. The Guardian.

Retrieved June 2, 2013, from http://www.guardian.co.uk.

Sivy, M. (2012). The Six Daunting Financial Problems Facing America. Business & Money / Time.…

Sources used in this document:
Works Cited

Amadeo, K. (2013). The U.S. Debt and How it Got So Big. About.com. Retrieved June 2, 2013, from http://useconomy.about.com.

Blodget, H. (2012). Here's the Biggest Problem in the American Economy. Business Insider. Retrieved June 2, 2013, from http://www.businessinsider.com.

Odland, S. (2012). My Top 10 Economic Worries. Forbes. Retrieved June 2, 2013, from http://www.forbes.com.

Rogers, S. (2013). U.S. debt ceiling: how big is it and how has it changed. The Guardian.
Retrieved June 2, 2013, from http://www.guardian.co.uk.
Sivy, M. (2012). The Six Daunting Financial Problems Facing America. Business & Money / Time. Retrieved June 2, 2013, from http://business.time.com.
Cite this Document:
Copy Bibliography Citation

Related Documents

Future Challenges Facing U.S. Healthcare: One of
Words: 965 Length: 3 Document Type: Essay

Future Challenges Facing U.S. Healthcare: One of the major issues that the United States has encountered in the recent years is the country's healthcare system especially in the wake of the need for healthcare reforms. However, even with the ratification of healthcare reform policies by the Obama administrations, the country's healthcare system is likely to continue facing some challenges in the future. Current Healthcare Problems in the U.S.: The current healthcare system in

U.S. / Israel Relations Israel
Words: 2817 Length: 8 Document Type: Term Paper

This is significant, because it would give the U.S. A way of being able to maintain this kind of balance of power in the region. As the trade embargos / economic sanctions against Iran and Iraq would serve as an example of inappropriate behavior. This is because they were being punished, for different activities that were in violation of international law such as: the support of terrorism or the

How Traveling and Tourism Contribute to U.S. Economy
Words: 4137 Length: 13 Document Type: Research Paper

Travelling and Tourism contributes to U.S. Economy How travelling and tourism contribute to U.S. economy Annotation Websites United States Department of Commerce Commerce Department Data Show U.S. Travel and Tourism Exports Contributed $87.1 Billion to U.S. Economy in First Six Months of 2013 The official website of the U.S. Department of Commerce takes keen interest in finding who enters the country for the purpose of traveling and tourism and what is the impact of traveling on

U.S. Health Care in the New Millennium
Words: 769 Length: 3 Document Type: Term Paper

Healthcare in the New Millennium The Future Trends of Healthcare Delivery The objective of this work is to present a new and improved healthcare delivery system for the new millennium. Future trends in healthcare and how they affect disease management, financial management, technology and the social aspects of health care delivery will be given consideration as well as integration of personal knowledge of the historical, social, ethical, technological and financial aspects of

Challenge of Managing All Stakeholders in the Context of a Merger...
Words: 23212 Length: 80 Document Type: Term Paper

Managing All Stakeholders in the Context of a Merger Process Review of the Relevant Literature Types of Mergers Identifying All Stakeholders in a Given Business Strategic Market Factors Driving Merger Activity Selection Process for Merger Candidates Summary, Conclusion, and Recommendations The Challenge of Managing All Stakeholders in the Context of a Merger Process Mergers and acquisitions became central features of organizational life in the last part of the 20th century, particularly as organizations seek to establish and

Globalization
Words: 1727 Length: 5 Document Type: Essay

globalized context, which of the two issues -- sovereign debt and energy insecurity -- is the greater challenge to U.S. national interests and why? Globalization is the integration of trade, economic, financial and communication resources. Its primary focus is on the free transfer of goods and services across national borders. However, there are some restrictions which are applied under this philosophy. Most notably: the movement of people across national borders

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now