Current Event #2:
US deficit falls faster than expected
By James Politi
Carolina De Leon
ECO 2013 PRINCIPLES OF ECONOMICS MACRO HONORS
October 6th, 2014
The United States Deficit is not just a large number. It’s a furious, roaring problem that shallows the U.S economy a little more each day. Deficit is debt and debt prohibits a country from reaching its full potential. US deficit falls faster than expected is an article informing the reader of the short-term deficit decrease due to major budget cuts. Furthermore, this article displays government involvement in making sure the deficit continues to fall for our future.
James Politi writes a rather positive article about the decline of U.S deficit. Most of his sources come from the Congressional Budget Office, the office in charge of where the government spends money and how they manage U.S finances. The CBO records improvements from months prior to the current date of the article as highly significant. Areas of improvement include household finances, major mortgage companies and revenue from businesses. While this progress has declined, according to the article, by $642bn, or 4 percent of GDP, the dilemma of a 17 trillion dollar deficit is increasing by the second. (U.S. National Debt Clock, Oct. 2014)
The article states a key factor that is important to recognize: “Consumers will only increase their spending slowly”. Although advance has occurred, the problem will continue to grow. The United States continues to face staggering uproars in health care and pension cost. Raising the borrowing limit is a step that is recognized in order to move forward. This will require the Senate and House to agree on one sole budget. Arguments of lost hope in fixing the massive debt tease our government leaders daily. But undoubtedly, the deficit will invoke response due to its large devouring effects in numerous areas of our government. Concluding the summary, exercise and intention has raised a spark in both Democrats and Republicans. The stand consists of action in establishing positive cutbacks to decrease our deficit for a better tomorrow. Extensive brainstorming and willingness to reach a common ground must be found in order to research this goal.
I believe this article provides accurate results of the decreasing US Deficit and predicts valid on the future deficit percentages.