Nobody downloaded yet

Debt - Essay Example

Comments (0) Cite this document
Summary
The current global recession and the increased spending on war on terror have affected American economy drastically so that the fiscal deficit of the country has increased a lot. The phenomenon fiscal deficit happens when the government spending exceeds the revenue it generates…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.1% of users find it useful
Debt
Read TextPreview

Extract of sample
"Debt"

Download file to see previous pages void the fiscal deficit as much as possible by the repayment of massive public debt in order to save the current and future generation from the burdens of debt.
The American deficit in 2009 was around $1.8 trillion which was equal to 13.0 percent of gross domestic product (GDP). This deficit was $157 billion higher than what is expected. The additional spending to recover the economic sector from the current financial crisis was the major reason for the increase in deficit (An Analysis of the President’s Budgetary Proposals for Fiscal Year 2010, p.1). America was one of the worst affected countries as far as the current recession is concerned. Many big companies were one the verge of close down unless the government helped them. The close down of big companies will definitely increase the unemployment problem which the government don’t want to occur. So, only option available in front of the government was to declare a stimulus package to pump money to the ailing economy. Since the gross domestic production growth was less, the pumping of money to the ailing economy may increase the fiscal deficit again and again which means each American’s debt was also increasing.
The Iraq and Afghan wars were also contributed heavily to America’s deficit. It is difficult for America to stop the military exercises in Afghanistan and Iraq before achieving the objectives. It is suicidal for America to stop these wars since neither of the objectives was achieved yet. At the same time, new war fronts are also on cards for America. For example, Iran’s efforts to acquire nuclear weapons cannot be watched silently by America. Many people believe that America will be forced to open another warfront in Iran in order to prevent Iran acquiring the nuclear power. Any such moves will again put American economy in jeopardy. It is difficult for America to conduct wars in three different regions at the same time.
Immediate stoppage of wars is the only possible solution in front ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Debt Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Debt Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/miscellaneous/1563406-debt
(Debt Essay Example | Topics and Well Written Essays - 500 Words)
Debt Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/miscellaneous/1563406-debt.
“Debt Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1563406-debt.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Debt ceiling
...? Debt Ceiling Debt ceiling is the limit to which debts can be borrowed. The debt ceiling as perceived in the United States is the maximum amount of debt that can be borrowed by the United States in order to run its operations. The process through which debt is borrowed by the government is by issuing bonds. The government issues bonds in order to raise the debt and the holders of such bonds hold the position of a creditor. The bonds have a date of maturity and a rate of return, and these are held by individuals or organizations as available for sale as well. Due to the application of debt ceiling, there...
6 Pages(1500 words)Essay
Debt Financing
...?Debt Financing Table of Contents Table of Contents 2 Introduction 3 Conceptual Relevance 4 Debt Financing 4 Cost of Agency 6 Agency Conflicts 7 Benefits of Debt Financing over Agency Conflicts 9 Recommendations 13 Conclusion 14 References 15 Bibliography 18 Introduction The capital structuring for the firms has gained significant importance in deciding the appropriate structure that will provide maximum advantage with minimum cost to the firms. There has always been a debate over the equity and debt financing for capital structure and it still continues (Becker & Stromberg, 2010). The increasing importance of debt financing in modern era of business has...
10 Pages(2500 words)Essay
Debt Crisis
...?United s Debt Crisis Introduction The debt crisis began when the Federal Reserve slashed interest rates to after 9/11 and the Dot com bubbleburst, to boost the US economy. 1% was a very low return on investment. However, this meant that banks could borrow at very low rates. Ultimately, cheap credit was easily available to banks for borrowing. Details of the Crisis Shadow Banking comprises of financial institutions such as investment banks which do not come under the category of commercial banks and hence were not regulated by the US federal government. The debt/equity ratio increased from 15:1 to 30:1 after the US Securities and Exchange Commission allowed shadow banks to borrow as much...
4 Pages(1000 words)Essay
Government Debt
...? ONE SHOULD NOT BE UNDULY ALARMED BY THE SIZE OF GOVERNMENT DEBT AS IT DOES NOT NEED TO BE REPAID AND THAT THIS IS A DEBT THAT WE OWE TO OURSELVES. DISCUSS Name: Instructor: Task: Date: There is no alarm for the government’s debt size as it does not need to be repaid and that this is a debt to us Introduction Government debt refers to the aggregate value of the bonds and securities that the government has incurred in deficits. This debt is outstanding and financed through borrowing (Wells & Krugman, 2009). These finances are necessary in funding government operations and implementing monetary policies that solve the populace’s problems and cushion them against recessive economies (Pentecost, 2010). The following theories affirm... that...
6 Pages(1500 words)Essay
Ecological Debt
...Ecological Debt What is Ecological Debt Based on The World Revolution (no , "Ecological Debt is the liability that industrialized countries have for the damage they have caused to the livelihood of humans and to life in the planet. Such destruction is the direct effect of their production and consumption which constitute an unsustainable model of development, strengthened by globalization, and a threat to the sovereignty of nations. Ecological Debt is the obligation and responsibility that industrialized countries of the North have with the Third World, for the exploitation of their natural goods such as oil, minerals, forests, biodiversity, indigenous and peasant...
2 Pages(500 words)Essay
Debt Consolidation
...Debt Consolidation Debt consolidation is a process that involves taking of a loan to settle many other loans. The primary reason for doing this is to acquire a single loan with a lower interest rate which is normally at a fixed rate, instead of paying higher interest payments to a number of lenders. This is also done sometimes simply for the convenience of having just a single lender to deal with. This technique could involve the transferring of liability of a number of different unsecured loans into one unsecured loan, or it could involve the transferring of the liability of the unsecured loan into a secured loan by pledging an asset as collateral ('Debt Consolidation,' par.2). An...
4 Pages(1000 words)Essay
Personal Debt
...Running Head: MARKET RESEARCH WORK Market Research work [The [The of the Market Research Coursework Abstract This Marketing research provides a summary of the research shows overview on personal debt in UK is sourced from consumer bodies, regulators and academia. This evaluation has benefited from the contribution of customer organizations and hence brings jointly overview that is not all the time available. All agree that further study is needed, chiefly on financial decision-making. This marketing research survey shows the major gap lies in the reading of the social and artistic dimensions of debt, credit and decision-making. The research has been conducted to allow interviews of adults in UK to know...
14 Pages(3500 words)Research Proposal
Economics Debt
...Hernani M Jover Order # 416629 25 February Seminar Topic: Budget Deficits and Public Debt Introduction This paper focuses on budget deficits, the resulting public debt and their impact on a country’s economy. US trade policy is also integrated in the paper, but only to the extent that it impacts on budget deficits and public debt. There are three underlying considerations of this work. First, governments have been running on budget deficits for longer than two decades. Secondly, prospects for global growth have been deteriorating over the past few months. Third, there is a growing sense of unease among many sensible people about government’s inclination for foreign borrowings and deficit spending. Government for the People... ...
4 Pages(1000 words)Essay
USA Debt
...National debt and deficit in U.S Causes and solutions [Pick the National debt and deficit in U.S The national debt and the fiscal deficit of the United States has given rise to debates over the past few years where the debt issue has taken new heights as the public debt keeps on rising and denting the economy. At the end of March 2011, it was seen that the Total National Outstanding Debt had risen to over $14 trillion (Treasury). The analysts have mentioned numerous causes for the debt to reach such a height. Causes of rise in national debt During the first decade of the new millennium, the government...
1 Pages(250 words)Essay
Debt Administration
...bond rated Baa will bear higher interest rate than a municipal bond rated Aa.This is because, according to Moody’s rating ,a bond rated Aa has shows that credit worthiness of the issuer is high hence the issuer will have to pay less interest on the debt being issued, as opposed to a municipal bond rated Baa which are judged to be of medium grade and subject to moderate credit risk, meaning that credit worthiness of the issuer is somewhat good, but not as good as that of the one rated Aa.Municipalities with lower bond ratings ought to pay more interest on debt being issued to compensate for the greater perceived risk associated with the lower rating. 3) A general obligation bond issued by a city or a...
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Debt for FREE!
Contact Us