U.S. Budget Deficit Good or Bad
Beginning with the "New Deal" in the 1930s, the Federal Government came to play a much larger role in American life. President Franklin D. Roosevelt wanted to use the full powers of his office to put an end the Great Depression. He and Congress greatly expanded Federal programs. Federal spending, which totaled less than $4 billion in 1931, went up to almost $7 billion in 1934 and to over $8 billion in 1936. Then the U.S. entry into World War II sent annual Federal spending to over $91 billion by 1944 (Evans 7-9). “As the federal government thus became a primary participant in the nation’s economic activity, the era of big federal government spending began” (Davis 18). However, is running a deficit a good idea? There are several reasons that show how it is both good and bad.What if the debt is not increasing as fast as we think it is? The debt may increase in dollar amount but often times so does the amount of money or GDP to pay for the debt. This gives us the idea that the deficit could be run without cost. How then could a deficit increase productivity without any cost? The idea of having a balanced budget is challenged by the ideas of Keynesian Economics (Makin and Ornstein 14, 120-122). Keynesian economics is an economic mod
. . .
Some common words found in the essay are:
Makin Ornstein, War II, Depression Congress, Federal Government, Franklin Roosevelt, government spends, federal government, spends money, Beginning Deal, five dollar debt, dollar debt five, inside production possibilities, government spends money, production possibilities, deficit spending, five dollar, inside production, debt five, hire salesman, paper clips,
Approximate Word count = 1058
Approximate Pages = 4 (250 words per page double spaced)
|
 |
