经济学Essay写作—美国国债的成因

www.lunwentop.net Top论文网 专业留学essay代写网站经济学Essay写作美国国债的成因经济学Essay写作Causes of the US National DebtHow big is the US National Debt and history?By definition, the amount of money owed by the federal government to creditors is referred to as the US National Debt. The National debt is categorized into two; public debts and government. Government debts are always on the rise due to the increase in government spending and expenditure, unpaid credits by debtors, decreased taxes among others (Zezza, 2014). The US National Debt has a historical increment due to the rise in debt as a share of the GDP during the recession periods and times of war. A combination of inflation and growth of GDP results in decreased national debt. The national debt of the US, for instance, increased after the World War II to 113 % in the year 1945 (Zezza, 2014). However, this figure later went down in the subsequent thirty-five years. In the past few decades, there have been concerns of how sustainable the fiscal policies of the US National government are based on the rise in costs of medication and the growing number of old people in the US population (Zezza, 2014). According to Sakbani (2013), the public debt of the US was at $ 14.3 trillion of the overall GDP while the inter-governmental debts were $5.4 trillion. This totals to about 10.6% of the 2015 GDP. Sakbani (2013) further notes that more than 45 % of the US national debt in 2016 was by foreign investors with Japan and China in the lead.Precisely, an analysis of the US national debt reveals that the debt has had a constructive decline since the year 1789 apart from between 1835 and 1836 (Chorafas, 2014). The debt was at the highest level during the first term presidency of Harry Truman which was during and after the Second World War. After the second world war, there was a notable fall in the national debt in the US. The US national debt was at its lowest point in 1974 under the leadership of Richard Nixon (Sakbani, 2013). However, after 1974, the national debt started appreciating and this has been the trend since then. But it stagnated during Bill Clinton and Jimmy Carters presidency. In the 1980s there was a tremendous increase in national debt due to Ronald Reagans decision to lower taxes and increase military expenditures. However, in the 1990s the debt went down when a reverse of the 1980s was implemented; increased taxes, and lower military spending. Chorafas (2014) highlights that due to the financial crisis between 2007 and 2008 the public debt went extremely high.There seems to be a surge in national debt during the GW Bush and Obama administrations. Why?There was a considerable rise in national debt between the presidency of George Bush and that of Barrack Obama. This was from $ 5.768 trillion when Bush left office to $ 14.071 trillion 735 days after Obama took office (Skidmore, 2011). This means that the recording of Bushs national debt was wrong. This is because in his term as the president there was a rise of $ 607 billion yearly hence the overall figure could not be $ 5.768 trillion as indicated in the Treasury records. Skidmore (2011) further explains that during Obamas era the national debt considerably went high by an average of $ 1.723 trillion yearly. This saw the figure go way up above the debt during Bushs presidency. However, it is not possible to hold Obama responsible for this increase in debt. This is because the figures flow from the 2009s budget which Obama never signed. This means that if the right account to Obamas accounts are to be analyzed this should trail down from the fiscal year 2010 and 2011 (Sakbani, 2013). In addition to a sum of $ 225 trillion that was included in the 2009 budget under his signature.A close comparison of Obamas and Bushs spending and deficit reveal that Bush was way far than Obama based on managing of the national debt. This argument can be supported by; Bush operated a total budget of 3.283 trillion in deficit spending for his eight fiscal years in office. On the other hand, Obama operated at a spending deficit of $ 2.826 trillion within his first two years in office. This means that while Bush operated at a deficit of $410 billion per annum, Obama operates at more than $1.4 trillion per annum, giving a difference of more than 1 trillion between the two reigns. This analysis explains the current surge between Obamas presidency and Bushs presidency regarding deficit spending.What are the consequences of a large national debt? Is it going to hamper the economic growth as some have claimed?Based on an economic perspective, large national debt affects the economic growth negatively. It is almost impossible for a government or country rather to sustaining a large and growing national debt. Some of the effects come from the side of investors who begin doubting the possibility of the federal government to continue servicing the economy and government spending (Boubekar et al., 2016).