What is a budget deficit? Well simply put, it is when you spend more money this month than your income. So instead of simply ceasing your spending,, you decide to borrow money, and now you have a deficit or a debt. Well, if you keep spending more than you earn and repeat this cycle over many months, before soon all you can do is pay for the interest on your loans. Therefore each month your debt is increasing, growing larger and larger. Until, one day your interest is more than you can borrow and you have to file for bankruptcy.

Why does our country, one of the richest nations in the world, have such an enormous debt? Our country had a repetition of annual deficits from about 1962 to 1997. In 1997 the Clinton administration and Congress managed to provide a surplus from 1998 to 2001. But after the events of September 11th our debt is grow

By improving the economy, control spending, and perhaps a few tax increases, the government can once again begin to see surpluses. Then by simply investing that money back into the people, we will all perhaps see a better return. As the economy and standard of living increases then so will the money the government receives, allowing it to pay off this monster of a debt slowly but steadily. The most important factor is not that we pay off the debt right now, but that we increase surpluses and stop the debt from growing any larger. Because if over time we don’t increase the debt then eventually we will have it paid off.

The main problem is once we have a surplus, like in 1998-2001, is that we don’t go falling back into debt. The best way to do this is not necessarily the most obvious. Instead of simply paying the debt off with the surplus and therefore decreasing the interest, and giving you more money, the government should use some of the surplus to enhance the nations infrastructure, educational system, and other necessities that will help improve the economy. Because if the economy is booming then the government will have a larger surplus.

If the government was in surplus in 1998-2001 and actually started paying off the debt, then why is it now rolling in to unthinkable numbers? The answer is that recent events in the world have propelled the government’s need for spendi

Some topics in this essay:
Budget Deficit, Medicare Medicaid, Contemporary Issues, President Bush, Iraq Afghanistan, money government, federal budget, paying debt, public debt, tax cut, budget deficit, government surplus, proposed tax, extra money, instead simply, events september 11th,