UNIT 5 DISCUSSION BOARD - Essay Example

The National Debt, a Continuing Crisis If the National Debt of the United s cannot be described asa situation experiencing a crisis then little else can. At its greatest level in history, the current deficit provides the economy with a small boost, but if allowed to continue on its path of projected growth, deficits will eventually result in the lower standards of living caused by a sustained stagnation of the economy. Citizens will also be deprived of various government programs such as those targeted at the economically disadvantaged – a state many more people will experience if the current trend is not reversed.

Other government funded interests such as education, military and infrastructure will suffer greatly as well. According to the Commerce Department, the yearly payment on this debt, the deficit, reached $725.8 billion. This represents a 17.5 percent increase from 2004 (Armstrong, 2006). These figures are well past most peoples’ comprehension. If, for example, a person were to spend a million dollars a day since the birth of Christ, they would have to continue the spending spree for 700 more years to have spent one trillion dollars.

Multiply that amount by eight. That still does not equal the current national debt. Started in 1791, the national debt was, by those days’ standards, an incredible $75 million. Due to President Andrew Jackson’s prudent approach to government spending, the national debt was lowered to, again adjusted to today’s standards, a much lower level – $37 thousand (Suter, 2004). The Reagan/Bush administrations of the 1980’s ran the debt up by historic proportions. When President Clinton took office in 1993, the debt stood at $2.

4 trillion. The massive increase of debt was not used for infrastructure, education, public programs or even to finance a war. As a result of Reagan’s ‘trickle down’ economic theory, the money wound up in the pockets of the rich. In the early 1990’s, Congress adopted a ‘pay-as-you-go’ policy and federal spending cuts which resulted in budget surpluses for four consecutive years. Clinton announced that the nation could pay off the debt by the year 2013 if it stayed on the present course (Schoen, 2006).

That optimistic predication has long since been forgotten. Since 2000, the debt has tripled. The ‘pay-as-you-go’ policy expired in 2002 allowing Congress to cut taxes, a politically advantageous move while also increasing spending (Schoen, 2006). The current President Bush administration cut the taxes of the rich while increasing military expenditures on The War on Terror, invasions of Iraq and Afghanistan and the rebuilding of those countries. The debt has now exceeded even the Reagan administration’s record levels.

It has severely hampered America’s ability to continue to effectively defend itself or become involved in other potential conflicts worldwide. “There is a growing concern about what the increasing U.S. national debt will do to the nation’s ability to influence world affairs” (Suter, 2004). The issue of pork-barrel spending described as when Congressional Members ‘earmark’ monies over and above the budget resolution constraints so as to fund projects in their home district or state, is generally considered wasteful spending.

Even President Bush who has allowed the budget to rise to record levels is against the practice. As Bush accurately stated last January, “many of the pork barrel projects have never been reviewed or voted on by the Congress” (The White House, 2007). Congress will not be able to reduce the debt unless all earmarked spending bills are fully transparent to both Congress and the public or by greatly diminishing the practice altogether. According to Bush, “By balancing the budget through pro-growth economic policies and spending restraint, we are better positioned to tackle longer-term fiscal challenges facing our country, namely the entitlement programs.

Another area where we can work together is to reform the earmark process” (The White House, 2007). Bush is saying the right words and hopefully the next president will act upon this reality. The nation at present is facing many crises including the war in Iraq, illegal immigration, health care, etc., but the one of most importance is the national debt. It alone could tip the balance of power in the world. The U.S. would follow the lead and policies of other nations and be plunged into a third-world-like economic status.

Maybe the most troubling aspect of the debt is that it is future generations of Americans that will be most affected by the greed of the present generation. ReferencesArmstrong, David. (February 11, 2006). “U.S. Racks Up Record Trade Deficit in ’05: $725.8 Billion Total is 17.5% Increase Over 2004’s Mark.” San Francisco Chronicle. Retrieved February 4, 2008 from Schoen, John W. (2006). “Why is the National Debt out of Control?” MSNBC. Retrieved February 4, 2008 from Suter, Keith.

(June 30, 2004). “The Next International ‘Debt Crisis’ is in North America.” Online Opinion. Retrieved February 4, 2008 from The White House. (January 2007). “Fact Sheet: A Balanced Budget by 2012 & Earmark Reform.” Retrieved February 4, 2008 from