Trump’s Deficits Are Racing Past Obama’s
Section 1
This article describes the spending trends of the United States government and the reasons behind the economic budget of the nation. The budget deficit in the government has escalated in the past decade and is piling up on Federal debts. This trend will heavily impede the US economy if Congress fails to rectify government spending and amend fiscal policies. The former president, Obama, saw the national deficits drop significantly from $1.4 trillion to $580 billion in the last year of his administration. In President Trump’s administration, the national debt has escalated from $660 billion to $984 billion and is expected to hit over a trillion dollars by 2030. Statistically, the growth of federal debts is expected to surpass the economy’s growth rate, which will restrict public expenditure of the GDP (Thomas 133). Also, the US GDP growth is expected to slow down this year, according to the Federal Open Market Committee. The increasing federal debts will reduce national savings and rise to the fiscal crisis in the future.
Section 2
Government debts are on the rise under the two years of Trump’s administration. In the last two years, US trade wars with China and European nations have ruined business rapport and credibility, as international companies have left the business. The former administration developed more employment opportunities and positive GDP growth, however, the economy is at risk, given the tension among the international nations, which had a better relationship with the states. When the federal deficits reduce, the economy performs better as there are funds available for savings and investment.
Section 3
The funds spent by the government is directed to social security, Medicare, and utilities needed by citizens. Federal budgets outline the amount and procedures of spending government money, among different departments, such as education and the military (Pierre 7). Overspending on various departments, such as the military, creates a deficit in government revenue, which then translates to higher taxes to citizens. Fiscal policies can be used to stimulate the economy and lowering taxes. A decrease in government spending will decrease the overall demand for goods and services in the economy.
In conclusion, government taxation and expenditure determines the fiscal policy to be used in the economy. An increase in federal debts in the US will adversely affect the performance of the economy. President Trump’s administration has ruined business confidence among the European countries, which will directly decrease the GDP in a few years. Although there is steady growth in average wages and employment rates, there is a need to control federal debts in the current government.