borrowing or drawing upon past tax reserves." , Is it a good idea? Why

does the U.S. run a deficit? Since 1980 the deficit has grown

enormously. Some say its a bad thing, and predict impending doom,

others say it is a safe and stable necessity to maintain a healthy

economy. When the U.S. government came into existence and for about a

150 years thereafter the government managed to keep a balanced budget.

The only times a budget deficit existed during these first 150 years

were in times of war or other catastrophic events. The Government, for

instance, generated deficits during the War of 1812, the recession of

1837, the Civil War, the depression of the 1890s, and World War I.

However, as soon as the war ended the deficit would be eliminated and

the economy which was much larger than the amounted debt would quickly

absorb it. The last time the budget ran a surplus was in 1969 during

Nixon's presidency. Budget deficits have grown larger and more

frequent in the last half-century. In the 1980s they soared to record

levels. The Government cut income tax rates, greatly increased defense

spending, and didn't cut domestic spending enough to make up th

actually increasing sales. The problems of deficit spending out of a

end the Great Depression. He and Congress greatly expanded Federal

not a tangible event in the near or distant future. The way social

1936. Then, U.S. entry into World War II sent annual Federal spending

needs will "crowd out" business needs. This turns potential assets

from private sectors. The government did this by selling bonds to the

Some common words found in the essay are:
Economics Keynesian, Month Amount, World War, , Super Power, War II, Depression Congress, Millions Federal, Federal Government, Franklin Roosevelt, national debt, government spends, federal spending, social security, spends money, deficit money, economy government, operating curve deficit, debt five, times war, inflation crowding, government spends money, dollar debt five, five dollar debt,
Approximate Word count = 1611
Approximate Pages = 6 (250 words per page double spaced)