By Brendan, Justin, and Mike
2011 US Budget
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The Deficit is the difference between the
amount of money that we tax and the money
that we spend.
The Deficit usually increases during wars,
depressions, and during bad economy.
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The Deficit is important because it represents the amount of
money that the US owes to lenders.
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Lenders like banks or other countries might get worried about whether
the US can repay the money. They might refuse to lend more money
or increase the interest rates or make the US repay the money faster.
Another problem is that there is only so much money that can be
borrowed. This money can be borrowed by the federal government
but also people and businesses. If the government continues to
borrow more money, there is less money available for businesses and
people to borrow. It will be harder to borrow money to start a
business and harder to improve the economy.
• From 2010 to 2011, the deficit increased by $5 billion.
• The Office of Management and Budget projects that
the Federal Deficit will go down to $1.101 trillion.
• If we don’t pay off all of our debt, other countries might
lose their trust with the US and we could end up losing
an ally. This could hurt us in the long-run, if we ever
have a war and need their help.
•The Republicans- They believe that the taxes in
the US are too high, and would like to cut them.
This would not help the Deficit, it would increase
the amount of money that we owe if we continue
to spend the amount that we are spending.
•The Democrats- They also would cut taxes in the
US so that people wouldn’t have to pay as much,
although this wouldn’t help the Deficit, either.
•
"U.S. National Debt Clock FAQ." Ed Hall's Home Page. Web. 26 Jan. 2012.
<http://www.brillig.chm/debt_clock/faq.html>.
•
Joint Statement of Timothy Geithner, Secretary of the Treasury, and Jacob Lew,
Director of the Office of Management And Budget, on Budget Results for Fiscal
Year 2011. Digital image. U.S. Department of the Treasury. Web. 26 Jan. 2012.
<http://www.treasury.gov/press-center/press-releases/Pages/tg1328.aspx>.
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US Federal Deficits in the 20th Century. Digital image. US Government Spending.
Web. 26 Jan. 2012. <http://www.usgovernmentspending.com/us_deficit>.
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Huntley, Jonathan. "Congressional Budget Office - Federal Debt and the Risk of a
Fiscal Crisis." Congressional Budget Office - Home Page. Congressional Budget
Office, Macroeconomic Analysis Division, 27 July 2010. Web. 26 Jan. 2012.
<http://www.cbo.gov/doc.cfm?index=11659>.
•
"Budget Overview." The White House. Office of Management and Budget. Web. 26
Jan. 2012. <http://www.whitehouse.gov/omb/overview>.