U.S. Budget Deficit - Good or Bad?
"Spending financed not by current tax receipts, but by
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 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......
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