U.S. National Debt Essays -- Argumentative Economics Economy Papers

U.S. National Debt The U.S. national debt has reached an alarming proportion. As it steadily increases, it's effect may not be felt now, but it will be in the future. Paul Gregory and Roy ruffin, in their book entitled Economics, linked deficits with inflation in the long run (251). Demand-side inflation of this type fails to increase the GDP, but instead just increases prices. Continuous increases in prices do not benefit the country or future generations. Also entitlements, such as Social Secriuty and Medicaid, now engulf a large percent of the deficit. Figures from the article "The Entitlement Quaqmire" (http://www.europa.com/~blugene/deficit/entitlements.html) concluded that Social Secruity was the largest portion of the entitlements, which total to around one-half of the budget. While the older generations now benefit from this debt by paying lower taxes and receiving these entitlements, the younger generations will have to bare the burden of the debt run-up by these exha!ustive expenditures without recieving any benefit from them. With a future of inflation and indebtedness from which no benefit for the payee was received, demonstrates the debt will have an effect on the economy and not for the better. Some may argue that the Keynsian approach of increasing the AD by running a deficit is necessary. A liberal Democrat, Joe Schwartz in his editorial(http://comemac4.bsd. uchicago.edu/DSALit/DL/DL954#1) expre...