Question

``````What is the G.A.O why did it declare current U.S spending and consumption unsustainable? `````Does it matter whether deficits are held by US citizens and foreign citizens? If so Why?

Answer 1

Ans: GAO - The Government Accountability Office is a legislative branch government agency that provides auditing, evaluation, and investigative services for the United States Congress. It is the supreme audit institution of the federal government of the United States.

The GAO’s assessment of the federal government’s financial management has been hobbled by “widespread material internal control weaknesses, significant uncertainties, and other limitations” in the government’s financial controls, particularly within the Department of Defense. In effect, the GAO is saying that the government’s accounting is so sloppy as to be virtually unauditable. If a private company were to manage its finances in such a manner, it would face the full wrath of SEC regulators, but there are no such consequences for government agencies.

Over the long term, the structural imbalance between spending and revenue will lead to continued growth of debt held by the public as a share of GDP; this means the current structure of the federal budget is unsustainable.