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Deficit pp 71-84 | Cite as

Deficits Do Matter

  • Marie Bussing-Burks

Abstract

This chapter defends the viewpoint of those who say deficits are a huge concern and do matter. Up to this point, you have learned that continual annual deficits have led to a massive national debt. As you’ll see, there are many traditional, long-standing arguments against deficit financing, along with some newer arguments, such as those related to the dangers of an increaseing reliance on foreign creditors and the risk of potential downgrades of the U.S. debt. Many economists, politicians, and citizens say the debt matters more now than it used to. Let’s explore why.

Keywords

Interest Rate Federal Reserve Government Bond Debt Crisis High Interest Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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    Congressional Budget Office, “Federal Debt a nd the Risk of a Fiscal Crisis,” July 27, 2010, available at www.cbo.gov/doc.cfm?index=11659 (accessed May 17, 2011).
  2. 2.
    Standard & Poor’s, “‘AAA/A-1+’ Rating on United States of America Affirmed; Outlook Revised to Negative,” April 18, 2011, www.standardandpoors.com/ratings/articles/en/us/?assetID=1245302886884 (accessed May 17, 2011).
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    Standard & Poor’s, “Global Potential Down grades: An Increase Globally Following the Outlook Revisions to Negative for the U.S. and Japan,” May 9, 2011, available at www.standardandpoors.com (accessed May 17, 2011).
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    Politico, “Unsustainable Budget Threatens Nation,” March 24, 2011, www.politico.com/news/stories/0311/51864.html (accessed May 16, 2011).
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    Congressional Budget Office, “Federal Debt a nd the Risk of a Fiscal Crisis,” July 27, 2010, available at www.cbo.gov/doc.cfm?index=11659 (accessed May 17, 2011).
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    The Federal Reserve, Federal Reserve Statistical Release G.19, “Consumer Credit,” March 7, 2011, www.federalreserve.gov/releases/g19/20110307/ (accessed May 14, 2011).
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    The National Foundation for Credit Counseling, The 2011 Consumer Financial Literacy Survey, Final Report, March 2011 (prepared by Harris Interactive Inc. Public Relations Research), available at www.nfcc.org/newsroom/FinancialLiteracy/index.cfm (accessed May 14, 2011).
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    Citizens Against Government Waste, 2010 Congressional Pig Book Summary, www.cagw.org/reports/pig-book/2010/ (accessed May 14, 2011).

Copyright information

© Marie Bussing-Burks 2011

Authors and Affiliations

  • Marie Bussing-Burks

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