Dis 3

National Debt and Deficit Spending 

According to Amadeo article, If you add the debt held by Social Security and all the retirement and pension funds, almost half of the U.S. Treasury debt is held in trust for your retirement, (Amadeo ,2020). Which means to me that when I do get ready to retire will the money actually be there for me to retire? Or will I have to work till I am almost 80 years old in order to have some type of peace in retirement? Which gives me pause for my children. Monies being allocated to unnecessary war, or to pay federal reserve debt or healthcare, etc., will my children have to struggle when they are adults in the economy? And raising taxes and having tax hikes every season without minimum wage going up is just cause for crime rate to go higher. I am at odds with all of it because not one president has come up with a better solution enough idea to make the national spending and deficit better. 

References

Amadeo, Kimberly (2020). US Debt Default Causes and Consequences. The Balance 

Wessel, David (2020). How worried should you be about the federal deficit and debt? Policy 2020 Brookings

Nation Debt

Although the impact of national debt on the economy may feel subtle, they are notable. One key impact would be on the overall standard of living. With a greater U.S. debt per capita, there is a greater default risk for the federal government. This means that the treasuries would have to issue higher yields to appeal to investors. Due to this higher yield, a bigger percentage of the federal tax revenue would go towards paying the interest on the national debt to satisfy those investors. However, this will allocate fewer funds for economic enhancement projects, leaving Americans with a potential reduced standard of living. Along the lines of less funding, growing debt overtime may cause other nations to lose faith in one nation’s ability to pay back that debt. This would make it harder or more expensive to borrow fundings. Furthermore, if the nation spends lots of money to pay off this debt, there would be shifts in fiscal policy, significant tax law changes, and less capability to respond to any crisis. Overall, less funds towards improving the economy itself, would lead to more debt, and a lesser quality of life for Americans.

Cited Sources

Amadeo, K. (2020, April 06). The US Debt and How It Got So Big. Retrieved November 13, 2020, from https://www.thebalance.com/the-u-s-debt-and-how-it-got-so-big-3305778

Pacifica Wealth Advisors. (2020, November 03). Retrieved November 13, 2020, from https://www.pacificawealth.com/will-growing-national-debt-affect-economy/