What will happen to the US economy if the US Federal Government continues to run annual budget deficits?

· Economy
Author

Question by mrsg88: What will happen to the US economy if the US Federal Government continues to run annual budget deficits?
What will happen to the US economy if the US Federal Government continues to run annual budget deficits for the next decade. Will the economy survive that? Will the economy grow? Will it grow as fast as it could? Will the deficits cause the economy to grow faster? Will it grow at all?

Best answer:

Answer by PiaPib
Why were you not so worried about the budget when Bush was president? When he was spending money like a teenager at the mall with daddy’s credit cards, did you worry about it then?
The economy is coming back to a healthy point. It will take a while to do but it will rebound. The same team that had this country to a balanced budget during Clinton’s administration also is working on getting this mess straightened out. The banks have repaid most of the money with quite a lot of interest income. GM is paying their loan off 5 years early. Unemployment is going down.
Look at it this way, Obama inherited a mess from Bush equivalent to cancer. Do you cure cancer with an aspirin?

What do you think? Answer below!

3 Comments

Comments RSS
  1. jjt

    this is what they want. it all leads to the north american umion. like the eu is in europe. don’t believe me then check out the georgia guidestones

  2. TAT

    Our massive deficits and welfare spending will make us like modern day Greece. The same thing happened to Japan in the early 90’s. Our dollar will be worthless. The world will drop the American dollar as the standard. We won’t be able to create wealth. We will be no better than most of Russia. But at least the deadbeats will get free health care

  3. Bflowing

    Actually, running deficits will slow down the recession and cause the economy to grow.
    Remember, the people receiving the government payments pay taxes on it, and they spend the rest in their local economies. Its the multiplier effect.
    You have to be careful not to flood the economy with too much money as it could cause runaway inflation which raises the prices of everything, thus cheapening the dollar.
    Also note that the accumulative deficit is just a number. The Federal Government doesn’t really have to pay it off. It can stay on the books for a long, long time.

Leave a Comment