Question

In: Economics

1. How large is the current U.S. budget deficit and how has it changed over the...

1. How large is the current U.S. budget deficit and how has it changed over the last few years?
2. What is the total amount of U.S. debt and how has this changed in the last few years? Who holds this debt?
3. How does the current administration propose reducing the national debt? Do you think this plan is economically sound and achievable?
4. What are the potential economic consequences (short and long run) of large budget deficits/debt?
5. How have recent spending cuts impacted the economy?
6. What additional/different spending cuts would you recommend and why?

Solutions

Expert Solution

Budget deficit is defines as the excess expenditure over Revenue from both current and capital account .

Some economists believe that budget deficit are highly Dengerous for economy while some economist believe that controlled budget deficit are helpful in stimulation of growth in economy

1) :- in 2008 U. S budget was$459 billion but at the current time 2019 U.S BUDGET deficit reached $1 trillion . It rose $1.4 trillion And decline until 2015 and after that US deficit budget again started rising.

2) :--THE U.S debt taken by the federal government and it is equal to the $ 22 trillion and it is continuously rising. The debt held by federal government was equal to $ 10 trillion in 2008.

3) :- under us new government named Donald Trump US is disaster failed to reduce debt of country Or nation . For fulfillment of debt Donald cut down the government social security benefit plan . But according to sources and also economist doesn't give thumbs up for his plan .according to them it is not economically sound and viable it increase income inequality so government should not cut off them, for fulfillment of his national debt government should Cut down it's military spending.

4) :- in Short run high national debt will lead high interest rates but in Long run it will be reason of inflation .

5) :- transfer payments are one sides Trasection. it doesn't help in growth of economy so additional And over expenditure on national income should be cut down in order to reduce budget deficit . And for economy growth and reduction in budget deficit government should invest in infrastructure.

Rahul Sunny answered 3 months ago
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