An Assessment of the Impact of Government debt and Deficits on the Essay - 3

An Assessment of the Impact of Government debt and Deficits on the Economic Growth of United States - Essay Example Reasons for current debt and deficit Basically, the public debt of the country refers to the borrowings that the government does outside of the national budget (Huntington, 1996; Tombak, 2012) whiles the deficit refers to the amount of funds spent outside revenue generation. As seen above, an increasing pattern in the growth of national debt and deficit affects the economic growth of the country greatly because it stagnate the growth of the gross domestic product (Mearsheimer, 2001). Many have wondered why the debts and deficit have evolved in the pattern in which they have in the figure. First, experts blame misplaced national priorities as the major cause of the national debt size of the country. This is said in terms of spending more on non-revenue generative ventures (Waltz, 2010). Secondly, the United States have been blamed for taking up upon itself more responsibilities that it can take than the country can actually afford in the face of the international world. To this end, the country always has surpluses to de al with in its national budget. Finally, government social intervention policies are greatly blamed. Currently, statistics has it that Medicaid and Unemployment benefits alone could raise more than 12% of the size of the GDP if there were other viable means of ensuring that such interventions could be adjusted into proponents of revenue generation and empowerment for the populace (Mahar, 2009).