When replying to other students' postings, avoid simple replies like "I agree..." or simply "yes or no", without explaining your reasoning.Tell why you hold a certain opinion or why you agree or disagree with the points in the posting. Try to make your dialogue easy to follow. If you are replying to a comment, include the comment to clarify your point. If you are asked a question, please respond. Be sensitive and respectful and always appropriate with your comments.

Class Mate 1

The federal deficit is the amount of money the government spends in a year that is more than the amount of revenue it takes in. The national debt is the total amount of money the government owe.In recent years, the annual deficits that the federal government has been running have been greater than one trillion dollars. This has resulted in a significant increase in the national debt, which is currently at about $29trillion. The economic consequences of a rising federal deficit and national debt can include inflation, higher interest rates, and slower economic growth Yes, because the government is borrowing money to make up the deficit between its expenditure and its revenue. Long-term sustainability is not possible in this situation, which will ultimately result in more taxes and/or lower government expenditure. Because they endanger the economy, the amount of the deficit and debt is also reason for worry. A financial crisis can arise if the government is unable to pay its debts. Furthermore, higher interest rates, inflation, and unemployment may result from this. Concerns about the amount of the deficit and debt arise because they may have a detrimental impact on the government's credit rating. Downgrading the nation's credit rating might result in increased borrowing rates and make future borrowing for the government more challenging. The U.S. federal government owes money to various entities, including: -Social Security Trust Fund andas well as private investors, foreign governments, state and local governments and others.most of our debt is held by domestic investors, so we're not as dependent on foreign investors as it may seem. Secondly, foreign investors are more likely to continue to invest in US debt because it is considered to be a safe investment, and so they are not as likely to pull their investments out as some may think. So overall, while the national debt is large and growing, it is not as big of a cause for concern as some may think. There are several actions the government can take to lower the deficit figures. Spending less is one option. This may be accomplished by reducing wasteful spending, reducing the price of government initiatives, or doing both. An effective strategy to cut government expenditure without hurting crucial services is to eliminate wasteful spending. There are various ways to reduce wasteful spending, but some typical strategies include cutting back on pointless programmes, spending less on marketing and advertising, and streamlining administrative procedures. Another strategy to cut government expenditure is to lower the price of its programmes. This can be accomplished by negotiating better prices with vendors, lowering government employees' pay, or doing both. Another strategy for decreasing the deficit is to raise taxes. To achieve this, taxes on the wealthy can be raised, tax loopholes can be closed, or both can be done. An excellent method to raise money without burdening the middle class is by raising taxes on the wealthy. Raising marginal tax rates, doing away with wealthy taxpayer tax deductions, or doing both are ways to achieve this.

classmate 2

Federal deficit is when government spending outpaces revenue, or income from taxes. National debt is the amount of money borrowed from a country's government. The difference is that debt indicates the amount of money the government owes and that government revenue and spending is what the main factor is. According itsuptous.org, main consequences of national debt include decreased savings and income, higher interest costs and a lack of flexibility. We as a society should be concerned about these increasing sizes of deficit and debt because it could potentially disrupt the current economic state. We as a society owe this money to forein investors and the government and it should be of a large level of significance. The government would highly benefit by reducing deficit and debt numbers by decreasing foreign investors and giving society a larger amount of support and time to pay off these taxes and costs.