The government of the United States of America spends huge amounts of money. A large amount of this money goes towards Social Security. The other percentage of money goes towards is national defense, Medicare and health plans, transportation infrastructure. The amount of money the Government spends in a course of a year is overwhelming, and even though there attempts to pay it off, the national debt is still growing. If this continues we are sure to have a disaster.
American government spending has increased steadily throughout our history. The Great Depression ended the pattern of a slow increase in government spending; instead, it grew quickly. As the United States prepared to enter World War II, the government spent even more money, now on materials needed for the war. While this rush in production was necessary to success in the war, and incidentally finally ended the Great Depression, it pushed the government debt to all-time highs. This debt has steadily increased since then, and is now in the trillions of dollars, an outrages amount. Plans to end the current recession reflect those used during the Great Depression, with similar amounts of spending and lack of accomplishment. The federal government has borrowed so much money that its credit rating has been reduced. Outstandingly, our Government has gotten into a bad habit of spending far more than it earns, a habit that can only have devastating results.
In the private division, many individuals and businesses have gone into debt. These individuals and businesses are forced to declare bankruptcy. They no longer have to pay back the money they owe the banks. If the banks lose too much money they will be forced to shut their doors. This results in a loss of money for those who had their money stored in the bank. This could start a recession or even a depression. This is what happens when you spend more than you make. This is why you need to balance their budgets. The same stands true for the governments who overspend their income.
The consequences for what will eventually happen is the Americans will be forced to pay the price for our mistakes. They will increase taxes gradually to pay off the debt.
The Government spending has already reached unprecedented levels. This cannot continue, the next generation will have to pay for our wasteful and excessive spending. Our Government needs to establish a balanced budget, and start pay off our substantial debt.