Federal Deficit vs. National Debt

The federal deficit and the national debt  are both bad and getting worse, but what are they and how are they different? Key Terms Federal Budget Deficit: The difference between the federal government’s annual revenues and expendituresNational Debt: Total of all unpaid funds borrowed by the U.S. government The debate over whether the federal government should borrow money to extend unemployment benefits beyond the typical 26 weeks at a time when the number of jobless is high and public debt is growing rapidly shed light on terms that are easily confused among the public - the federal deficit and national debt. For example, U.S. Rep. Paul Ryan, a Republican from Wisconsin, said the policies put forth buy the White House including the jobless benefits extension in 2010 represent a job-killing economic agenda - focused on more borrowing, spending, and taxing - [that] will keep the unemployment rate high for years to come. The American people are fed up with Washingtons push to spend money we dont have, add to our crushing burden of debt, and evade accountability for the dismal results, Ryan said in a statement. The terms national debt and federal deficit are widely used by our politicians. But the two are not interchangeable. Heres a quick explanation of each. What is the Federal Deficit? The deficit is the difference between the money federal government takes in, called receipts, and what it spends, called outlays, each year. The federal government generates revenue through income, excise and social insurance taxes as well as fees, according to the U.S. Department of Treasurys Bureau of the Public Debt. The spending includes Social Security and Medicare benefits along with all other outlays such as medical research and interest payments on the debt. When the amount of spending exceeds the level of income, there is a deficit and the Treasury must borrow the money needed for the government to pay its bills. Think of it this way: Lets say you earned $50,000 in a year, but had $55,000 in bills. You would have a $5,000 deficit. You would need to borrow $5,000 to make up the difference. The U.S. federal budget deficit for fiscal year 2018 is $440 billion, according to the White House’s Office of Management and Budget (OMB). In January 2017, the nonpartisan Congressional Budget Office (CBO) projected that federal deficits would increase for the first time in nearly a decade. In fact, the CBO’s analysis showed the increase in the deficit will drive the total federal debt to â€Å"almost unprecedented levels.† While it projected the deficit to actually drop in 2017 and 2018, the CBO sees the deficit then increasing to at least $601 billion in 2019 thanks to rising Social Security and Medicare costs. How the Government Borrows The federal government borrows money by selling Treasury securities such as T-bills, notes, inflation-protected securities and savings bonds to the public. The government trust funds are required by law to invest surpluses in Treasury securities. What is the National Debt? The national debt is the total value of unpaid funds borrowed by the U.S. government.  The value of all Treasury securities issued to the public and to the government trust funds is considered that years deficit and becomes part of the larger, ongoing national debt. One way to think about the debt is as the governments accumulated deficits, the Bureau of the Public Debt suggests. The maximum sustainable deficit is said by economists to be 3 percent of gross domestic product. The Treasury Department keeps a running tab on the amount of debt held by the U.S. government. According to the U.S. Treasury, the total national debt stood at $20.245 trillion as September 30, 2018. Nearly all of that debt is subject to the statutory debt ceiling. However, under current law, the debt ceiling is suspended, allowing the government may to borrow as much as it wants through March 1, 2019. At that time, Congress will either have to raise the debt ceiling or suspend it again as it has in recent years While it is often claimed that â€Å"China owns our debt,† the Treasury Department reports that as of June 2017, China only held about 5.8% of the total U.S. debt, or about $1.15 trillion. The Impact of Both on the Economy As the debt continues to increase, creditors can become concerned about how the U.S. government plans to repay it, notes About.com Guide Kimberly Amadeo. Over time, she writes, creditors will expect higher interest payments to provide a greater return for their increased perceived risk. Higher interest costs can dampen economic growth, Amadeo notes. As a result, she notes, the U.S. government may be tempted to let the value of the dollar fall so that the debt repayment will be in cheaper dollars, and less expensive. Foreign governments and investors could, as a result, be less willing to buy Treasury bonds, forcing interest rates higher. Updated by Robert Longley

The Effects Of Social Networking On Academic And Social...

Katherine Suarez Literature Composition II Prof. Oujo December , 11 2015 Research Question: What are the effects of using social networking in academic and social aspects of college students? Over the years, social networks such as Facebook, Twitter, Instagram among others have caused a great impact to the world. The new ways of social relations that causing a transformation in the habits and customs of society. This huge popularity to can be connected and share a lot of information within seconds with the outside world has made a tremendous impact, especially on college students. There are many studies created talking about the effects of social networks, but there are few that speak of academic and social effects that they cause†¦show more content†¦We can see this on how college students use Facebook. This social network is used not only to socialize with people, but also to help to the freshmen students on college overcome their shyness factor. Transfer of high school to college is a big process which you can not afford it by your own. Students need new friends, professors that help them in this process. Some of these students may feel shy when it is related to making new friendships. However, by using Facebook ‘event tool’, students can organize meetings in order to get in touch with each other even more or keep light relationships with their classmates. Otherwise, shows that some of those less extroverted students may feel â€Å"a bit creepy† to show up at one of these meetings. These new students would feel uncomfortable going to a meeting and not knowing anyone. According to researchers have concluded that although Facebook is the most popular social network in United States where we can communicate, many college students prefer to use Twitter because it is more practical and easier to continue a dialogue, as it is just 140 characters per post. Twitter defines itself as a network of real-time information that can connect to issues of concern. Simply, you have to look for interest accounts and follow conversations . This makes students have had extended and richer discussions on Twitter more than in class. I think that

Rise of Industry in the Late 19th Century Free Essays

During the 1860’s America was in a period of economic hardship due to the ongoing demand for materials and money to fund the war. In the South, sufficient money and materials were hard to acquire because the southern economy still depended on the labor of slaves to produce their goods and income rather than factories. The Northern economy used numerous factories to produce goods and make profit for the war, but they still did not have technology that was advanced enough to easily produce all the necessary materials and money. We will write a custom essay sample on Rise of Industry in the Late 19th Century or any similar topic only for you Order Now After the civil war, America embarked on a journey of economic expansion and unification for the nation. In the late 19th century, government policies, technological advancements and population changes contributed to the rise of industry in America. Many government policies were created in the 19th century to encourage expansion and growth for America. Three very influential policies were the Homestead Act, the Pacific Railway Act and laissez-faire. The homestead act was passed by Congress in 1862 to encourage settlement of western land. It promised any citizen of the United States that was at least 21 years old a homestead of 160 acres under the terms that they paid a 10 dollar registration fee, farmed on the land for 5 years and lived on the land for at least 6 months out of a year. When passed, the act proved a success at allowing huge masses of people to further enlarge and develop America because â€Å"settlers from all walks of life including newly arrived immigrants, farmers without land of their own from the East, single women and former slaves came to meet the requirements† (Weiser). The pacific railway act of 1862 provided the Union Pacific and Central Pacific railroad companies with federal land grants and funds to construct a transcontinental railway that would unite the country as one. With the completion of the railroad, industry had the opportunity to rise across America because the transportation time of goods, capital, and people was significantly decreased and more efficient. Laissez-faire was a policy practiced by government that preached a free market economy. Under laissez-faire, the business’s of America were able to grow and acquire larger sums of money because the government had little to no interference in the actions of companies. In the 19th century as settlement and companies expanded across America, technological discoveries were being made as part of an industrial revolution that would further the efficiency and growth of industry. With the transcontinental railroad, the steam engine could transport materials, machinery, goods and more to companies across America with much more ease than horses and wagons could in previous times. The invention of the telephone by Alexander Graham Bell in 1876 increased communication between people to help the coordination and cohesiveness of companies. One brilliant inventor, Thomas Alva Edison, provided the nation with numerous inventions, two of which were the light bulb and the electric generator. As industrialization occurred, machinery was used to produce materials instead of human labor in order to increase production and profit. With the aid of Edison’s electrical generator, the machines of textiles could work faster and more efficient to maximize benefits. Also, with the aid of the light bulb, textiles were able to have longer work hours and produce larger quantities because the restriction of daylight hours was no longer a problem. â€Å"By the end of the nineteenth century, the nation was about to become a mass-production economy† because â€Å"the utilization of steam and electricity, the introduction of improved processes and labor-saving machinery†¦ multiplied enormously the effectiveness of labor† (Chandler 277; George 50). As America was booming from government policies and new technology, population changes also took effect to contribute to the rise of industry. Population was steadily rising due to immigration, migration, and improved conditions of living. Millions of European and Asian immigrants came to America in search of a more promising and successful life. These immigrants created a growing work force that big industries took advantage of by using the minimally paid workers to help produce more for their companies. Along with westward migration in America, â€Å"In the post-civil war period, cities swelled in population as a twin migration of immigrants and rural Americans flocked to the glittering urban environment† (Riis 320). This urbanization solidified the transition of the nation from an agricultural economy to an industrial one. Also in the 19th century, population was at a high compared the past because of improvements in health care, a higher reproduction rate and a better standard of living. These population changes provided America with a large, growing consumer economy that allowed industry and business to thrive. Compared to previous times, America ended the 19th century at an all time high due to new government policies, technological advancements and population changes. With the help of federal encouragement to settle westward and unite the country, industry was able to expand to more places across the nation. In these numerous factories, textiles and other working places, new machinery and technology was used to produce greater quantities in a shorter amounts of time which allowed industry to gain more profit and grow. These successful and innovative factories attracted immigrants and rural Americans, and pushed them to move to cities where industry and business could be a main focus. The growth of American industry in the 19th century took the nation to a whole new developmental level, and from there the nation continued to thrive and evolve. Citations Chandler, Alfred D. The Beginnings of â€Å"Big Business† in American Industry. 1959. American Issues. New York: Glencoe, 1994. 277-80. Print. Evans, Harold. â€Å"The Spark of Genius. † 2004. American History. Vol. 2. Dubuque: McGraw Hill, 2007. 6-21. Print. George, Henry. â€Å"Progress and Poverty. † 1879. America’s History. Fourth ed. Vol. 2. Boston: Bedford/St. Martin’s, 2001. 50-51. Print. Riis, Jacob. â€Å"Life in the Tenements of New York City. † 1890. Voices of the American Past. Second ed. Vol. 2. Orlando: Harcourt College, 2001. 320-22. Print. Story, Jill. â€Å"Lecture. † 27 Sept. 2010. S tory, Jill. â€Å"Lecture. † 5 Oct. 2010. Weiser, Kathy. â€Å"The Homestead Act – Creating Prosperity in America. â€Å"Legends of America – A Travel Site for the Nostalgic and Historic Minded. Apr. 2010. Web. 12 Oct. 2010. . How to cite Rise of Industry in the Late 19th Century, Papers