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Deficit Spending

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The United States needs to prioritize the elimination of deficit spending rather than increase domestic spending. We must eliminate deficit spending for the following reasons: it harms the U.S. economy to have domestic spending prioritized above deficit spending, its elimination is helpful to our economic growth and our stability, and deficit spending drops out our middle class. If we keep deficit spending in effect, we would be in a state of insurmountable economic problems, which clearly leads to future chaos and instability of our economy. If this pattern continues, our economic “house of cards” would crumble with the slightest bit of money spent.


We must eliminate deficits because they affect our foreign relations with countries overseas. As the Journal of American Economic Knowledge states, “Balanced budgets have caused the Yuan and the Euro to dominate the weak dollar.” Because of this, America has a weak image, and the only way to improve our weak dollar and our image is by prioritizing the elimination our budget deficits and creating a balanced budget. Goldman Sachs, the world’s largest global bank states, “Brazil, India and the European Union have had growth because of a balanced budget.” Clearly, a balanced budget would not only lead to economic growth, but also it would enable us the flexibility to spend as needed, as Dr. David Autur of Harvard University states: “A balanced budget allows the government flexibility to dip into the budget, when disaster strikes, such as 9/11 or Katrina.” Clearly, eliminating deficit spending would lead to a better economy, spending on the other hand would only make the economy plummet. Clearly, you must vote pro in this debate and prioritize the elimination of budget deficits.


Another reason to vote pro in this debate, and prioritize the elimination of deficit spending, is prioritization of eliminating deficit spending will help the economy. By concentrating on getting ourselves, out of our debt, we can thereby have a balanced budget and create a surplus. This surplus would evidently go towards increasing domestic spending. As Dr. Oliver Blanchard of MIT states, “Investors see a surplus or balanced budget as a sign of economic growth. They are willing to invest in businesses which would lead to job creation, steady economic growth, and a stable economy.” We must concentrate solely on eliminating our deficit spending, because concentrating on the increase of domestic spending would increase our spending and create an insurmountable debt, evidently leading to a permanent debt, which would affect the government’s flexibility, spending, and relationship overseas.


Thirdly, we must eliminate deficit spending, because this is dropping out our middle class. Since the middle class, is what ensures balance in our society, without this we cannot function as a country, and we would soon crumble as a nation. As the Cambridge Journal of Economics in summer 2006 states, “While deficit spending leads to more money for the rich, businesses are forced to raise their prices, forcing the middle class to dwindle.” If businesses raise their prices, then the middle class would not be able to pay their prices, which would create an upper class who can afford the prices and a lower class that cannot. Furthermore, this would harm our fragile economy, and by driving a wedge in between the classes, we would be breaking the very fabric of our economy.


Therefore, the prioritization of eliminating deficit spending would be beneficial because, domestic spending harms the U.S. economy, eliminating deficit spending would benefit our economic growth and its stability, and deficit spending drops out a middle class. For those reasons, you should clearly vote pro and prioritize the elimination of budget deficit over increasing domestic spending.





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This article has 4 comments. Post your own now!

albou_Egrl said...
Nov. 20, 2010 at 12:50 pm
This is an outstanding article. Well organized and supported... Keep the articles coming, I'm loving it!
 
david2032 said...
Jan. 25, 2010 at 10:00 am
This article is great. I admire that you used quotes, news articles and sources.
 
oopsydaisy said...
Oct. 20, 2009 at 12:55 am
Wow ! Your article is fully supported by quotes and statements - you have earned my respect for this article .
 
Shardul G. This work has been published in the Teen Ink monthly print magazine. replied...
Jan. 5, 2011 at 5:15 pm
Thank you for the kind comments. Despite it saying anonymous, this is my work.  I wrote this as a sophomore in high school after doing some research for a book review. 
 
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