The government of the United States of America spends hugeamounts of money. A large amount of this money goes towards Social Security.The other percentage of money goes towards is national defense, Medicare andhealth programs, transportation infrastructure. The amount of money the Governmentspends in a course of a year is overwhelming, and even though there attempts topay it off, the national debt is still growing. If this continues we are sureto have a disaster.
Americangovernment spending has increased steadily throughout our history. The GreatDepression ended the pattern of a slow increase in government spending;instead, it grew quickly. As the United States prepared to enter World War II,the government spent even more money, now on materials needed for the war.While this rush in production was necessary to success in the war, andincidentally finally ended the Great Depression, it pushed the government debtto all-time highs.
This debt has steadily increased since then, and is now inthe trillions of dollars, an outrages amount. Plans to end the currentrecession reflect those used during the Great Depression, with similar amountsof spending and lack of accomplishment. The federal government has borrowed somuch money that its credit rating has been reduced. Noticeably, our governmenthas gotten into a bad habit of spending far more than it earns, a habit thatcan only have devastating results. Inthe private division, many individuals and businesses have gone into debt. Theseindividuals and businesses are forced to declare bankruptcy. They no longerhave to pay back the money they owe the banks. If the banks lose too much moneythe will be forced to shut their doors.
This results in a loss of money forthose who had their money stored in the bank. This could start a recession oreven a depression. This is what happens when you spend more than you make.
Thisis why you need to balance their budgets. The same stands true for thegovernments who overspend their income. The consequencesfor what will eventually happen is the Americans will be forced to pay theprice for our mistakes. They will increase taxes gradually to pay off the debt.
The Governmentspending has already reached unprecedented levels. This cannot continue, thenext generation will have to pay for our wasteful and excessive spending. OurGovernment needs to establish a balanced budget, and start pay off oursubstantial debt.