et, but it can also be done without negative
consequences. Maintaining a budget deficit, on the other
hand, drastically hurts the stability of the U.S. economy.
Argument 2: A budget deficit harms the United States through
creating a trade deficit and increasing the national debt
Almost everyday on the news one hears something about
the Federal deficit and the U.S. budget problems. Currently,
the Federal deficit is over five trillion dollars, and that
divided out among the U.S. population equals over nineteen
thousand dollars per person. This enormous debt couldn't
have been created overnight. The government's failure to
balance the budget resulted in both the large trade deficit
First, the government needs to focus on the trade
deficit. Lowering the budget deficit will help the American
public with national savings which, in the long run, will
rescue the trade deficit. "The ballooning federal deficit
had cut national savings far below the nations investment
needs. As a result, the U.S. had to import capital from
overseas, which inevitably resulted in a trade deficit"
(Koretz 1). The main point of all this is that private
savings is down, and needs to be brought back up. "Thus,
while the public sector's saving performance has improved
mightily in recent years, America's household savings rate
has plummeted to its lowest level in 39 years-leaving the
U.S. still highly dependent on foreign capital (Koretz 1).
Another key point to this issue is high foreign debt. By
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