Abstract
This chapter defends the viewpoint of those who say that deficits are a huge concern and do matter. Up to this point, you have learned that continual annual deficits have led to a massive national debt. As you’ll see, there are many traditional, long-standing arguments against deficit financing, along with some newer arguments, such as those related to the dangers of an increasing reliance on foreign creditors and the risk of potential downgrades of the U.S. debt. Many economists, politicians, and citizens say the debt matters more now than it used to. Let’s explore why.
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Congressional Budget Office. Federal Debt and the Risk of a Fiscal Crisis, July 27, 2010. Available at www.cbo.gov/doc.cfm?index=11659 (accessed May 17, 2011).
Moody’s. “‘AAA/A-1+’ Rating on United States of America Affirmed; Outlook Revised to Negative,” September 11, 2012. Available at www.moodys.com/research/Moodysissues-update-on-the-outlook-for-the-US-governments—PR_254944 (accessed September 15, 2012).
Standard & Poor’s. “United States of America Long-Term Rating Lowered to ‘AA+’ Political Risks, Rising Debt Burden, Outlook Negative,” August 5, 2011. Available at www.standardandpoors.com/ratings/articles/en/us/?assetID=1245316529563 (accessed September 17, 2012).
According to the Organisation for Economic Co-operation and Development, “Gross financial liabilities refer to the debt and other liabilities (short and long-term) of all the institutions in the general government sector.”
Politico. “Unsustainable Budget Threatens Nation,” March 24, 2011. Available at www.politico.com/news/stories/0311/51864.html (accessed May 16, 2011).
Congressional Budget Office. Federal Debt and the Risk of a Fiscal Crisis, July 27, 2010. Available at www.cbo.gov/doc.cfm?index=11659 (accessed May 17, 2011).
The Federal Reserve. “Federal Reserve Statistical Release G.19: ‘Consumer Credit,’” September 10, 2012. Available at www.federalreserve.gov/releases/g19/current/ default.htm (accessed September 15, 2012).
The National Foundation for Credit Counseling and the Network Branded Prepaid Card Association. The 2012 Consumer Financial Literacy Survey, Final Report, April 2012 (prepared by Harris Interactive Inc. Public Relations Research). Available at www.nfcc.org/NewsRoom/newsreleases/SIGNIFICANT_GAPS.cfm (accessed September 15, 2012).
Citizens Against Government Waste. 2010 Congressional Pig Book Summary. Available at www.cagw.org/reports/pig-book/2010/ (accessed May 14, 2011).
Rights and permissions
Copyright information
© 2012 Marie Bussing-Burks
About this chapter
Cite this chapter
Bussing-Burks, M. (2012). Deficits Do Matter. In: Deficit. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4302-4840-8_7
Download citation
DOI: https://doi.org/10.1007/978-1-4302-4840-8_7
Publisher Name: Apress, Berkeley, CA
Print ISBN: 978-1-4302-4839-2
Online ISBN: 978-1-4302-4840-8
eBook Packages: Business and EconomicsBusiness and Management (R0)Apress Access Books