According to the estimate, deficits will narrow to $700 billion by fiscal 2013 before gradually rising back to $1.0 trillion by the end of the decade, the source said.
President Barack Obama will seek to strike a balance between reducing the deficit over the long term and stimulating the economy in the short term to ease the pain of double-digit unemployment.
V’s thoughts:
- The US Federal Government doesn’t have to have a balanced budget. I think they should. I’m not allowed to spend more than I have for extended periods of time, neither should they.
- Eventually someone is going to have to pay this off… I don’t want my kids to be stuck with it. So let’s get it under control now!
- There will always be something else we NEED to spend money on~ we have to put a limit to it somewhere.
What are your thoughts? Comment on this or comment on someone else's comment. All comments must be legitimate and based on Economics in order to get credit for the week.
WOW. $700 billion?!? Mrs. V, not even your children or my children, even our GRAND children would be paying for something they didn't do, that is in other words all the owing of this and that... Instead of being thinking on the "gradually risk back" of the $1.0 trillion dollars U.S.A would be owing, they should try to think in ways of HOW to create limits that won't affect the economy, even though this is the IT question of the decade; there must be a WAY to solve it out! Before it gets seriously to MORE!!!
ReplyDeletefrom,
Worried Mara :'O
Michelle Troncoso:
ReplyDeleteAmm.. Well… about the problem US has is really awful to know, and seeing it happening right know and not been able to help them is sad. It will be a hard work for them to be able to get 1.0 trillion of dollars or 700 billion (w/e) by the end of the time/due date/year. This is one of the major problem millions of Americans are unemployed, living on the streets until now days.
--- EXTRA ---
Mrs. V, i send you my economic essay to your email im not sure which one is it, but i send it to mlverwys@gmail.com and @hotmail.com :P
Hello Ms.
ReplyDeleteWhat you are actually depicting is true, the spending by the government of billions and trillions of dollars will need to be paid off one day and the ones suffering it will be us, the people, the country. There has to be a certain regulation as to the way of spending money; the same way you said: if I have an eye on me for not spending exaggerated amount of money, then they should have an eye too so the economy can be more balanced and the govn't would not have a block of money behind them that will just pull them, and us, down. If this "problem" can be taken into consideration apropiately as Barack Obama said he will do, then the lives of many citizens will--surely--get better, as to lower unemployment.
Jessica Gottardo
I belive the US economy is in a unstable position right know trying to use more than what they have. Actions should be taking and they should be taking now. the more the government last the more citizens would suffer in the long term. Unemployment should end and in my opinion the best government in which all this could stop is obama's.
ReplyDeletethe U.S is spending lots of money. Not actually the U.s , the govermenT everything they do relies on the citizens . Later on the ones that will suffer about these waist of money will be us. we dont know what will happen later with economie around the world, so we should be prepare and start saving money for later !!
ReplyDeleteIn my perspective, I believe that the deficit is nothing to worry about. The only way to fight recessions like these is through injecting a plethoric amount of money into the economy.
ReplyDeleteThe same issue about the federal budget deficit occurred during the Iraq War, people have known about this recovery plan and its consequences for quite a long time, why is it all around the media...now!?
In addition, a similar situation occurred in Japan's recession a couple of years ago, they failed to inject sufficient money into the economy and the plan failed. This new fiscal policy should be massive and at the same time continuous. If we get scared now, after it is done, then why was it accepted in the first place? Actually, even more should be invested in eliminating unemployment. A person more workig oculd be the next entrepreneur.
Last thing, most of this budget deficit was not because the extreme spending but rather , due to the recession, the fact that the govt is not receiving as much income. Paying the deficit will come at its time, and as far as I know the interest rates in a decade will only rise to a 3.5% of GDP which was almost the same as how it was under the first President Bush.
Mrs. V i believe you are completely right about what you said. People tend to spend more money that what they win which leads them to fall into debts, loans, mortgages, etc... If the country does not let us spend more than what we win then they should set the example.
ReplyDeleteThe difference between the deficits of the US are very big and it would not be easy for them to recover if this keeps happening
AHHHH! I forgot my password and had to go through the whole forgotyourpassword thing and make a new one..good thing was the secrete question thing saved me anywayyzzzzzzzzzzzzz.
ReplyDeleteThe U.S. has been doing things like this for years.They just need to keep taxing or invading some thirdworld countries and things will level out again. You shouldnt spend more than what you have..especially if you are one of the leading nations of the world.
barrack obama is trynig to do whats best for the US. he promised to reduce unemployment at the beggining pf his term. with less unemployement it could probably flow.
ReplyDeleteCiro Dargam
I believe president Obama should keep on going with his plan of action to recover the economy which I think will help the governments budget deficit to go down.
ReplyDeleteim sorry for being late and had to go through the same process alej did. the US is spending thousands of money and i think what obama is doing is great, because people spend lots of moneys and then fall into debt, i feel you alej im wit you and luisa.
ReplyDeleteMake sure your posts come before midnight on Sunday! Otherwise you will not receive the points for the week.
ReplyDeleteIf people invest, the economy will flourish. If they don't it will remain the same.
ReplyDeleteJose A.