Essay About Essay Preview And U.S. Budget Deficit

U.S. Budget Deficit – Good Or Bad?
Essay Preview: U.S. Budget Deficit – Good Or Bad?
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“Spending financed not by current tax receipts, but by
borrowing or drawing upon past tax reserves.” , Is it a good idea?
Why does the U.S. run a deficit? Since 1980 the deficit has grown
enormously. Some say its a bad thing, and predict impending
doom, others say it is a safe and stable necessity to maintain
a healthy economy. When the U.S. government came into existence
and for about a 150 years thereafter the government managed to keep
a balanced budget. The only times a budget deficit existed during
these first 150 years were in times of war or other catastrophic
events. The Government, for instance, generated deficits during the
War of 1812, the recession of 1837, the Civil War, the depression
of the 1890s, and World War I. However, as soon as the war ended
the deficit would be eliminated and the economy which was much
larger than the amounted debt would quickly absorb it. The last time
the budget ran a surplus was in 1969 during Nixons presidency.
Budget deficits have grown larger and more frequent in the
last half-century. In the 1980s they soared to record levels. The
Government cut income tax rates, greatly increased defense spending,
and didnt cut domestic spending enough to make up the
difference.