n your responses, comment on at least two posts from your peers by comparing and contrasting your experiences and opinions. Share current news articles or references from the textbook that support your decisions in the simulation and your claims related to the national debt.

Please HELP

The stimulation was definitely a challenge for me. You hear a lot of talk bout cutting the national debt and many arguments on how to do that. When faced with actually cutting, it is a lot harder than it seems. I did not have a strategy at the beginning of the stimulation. I mainly was cutting things that I thought would help. When I got to the end and still had more of the budget to cut, I began looking over the situation and reading what it actually meant to cut the budget. I was successful in reducing the debt but it may not be in the way that would make most Americans happy including myself.

In my opinion, national high debt is a problem for economic growth. When there is national high debt, it can lead to negative consequences for future economic growth such as crowding out investment, increasing interest payments on debt, and reducing the government's ability to respond to future crises.

The crowding-out effect is a phenomenon where an increase in government spending leads to a decrease in private investment spending, which can negatively impact economic growth (Mankiw, 2020). When the government increases spending, it often borrows funds by issuing bonds. As a result, the demand for loanable funds increases, causing the interest rates to rise. Higher interest rates make it more expensive for businesses and individuals to borrow money, leading to a decrease in private investment spending.