Today our U.S. Government Debt is growing faster than at any time in our nation’s history. But why is our government debt growing so fast?
The answer lies in how our federal budgeting and spending process works. Each year, Congress and the President approve a budget that consists of government tax receipts and government expenditures. If the tax receipts exceed the expenditures (this never happens anymore), then we have a budget surplus. If the expenditures exceed the receipts (which happens every year now), then we have a budget deficit.
To make up for this budget deficit, the government has to borrow money to meet all of its obligations. That’s where government debt comes from. The reason our government debt is growing so fast is because we are running the largest budget deficits in history. For example, the 2009 budget debt was $1.4 trillion, which is a record. In fact, it was almost quadruple the size of our previous record budget deficit.
Projections are for our government debt to keep growing at an astronomical rate in the coming years. Unless action is taken to bring our government debt under control, we will risk an economic collapse in America of unthinkable proportions. Please encourage the President and Congress to take the necessary steps to reduce both government spending and the government debt.
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