What affects will the huge deficit have on the US economy?
114710
Amazingly, President Bush has managed, with his batty attack on Iraq, to drain the treasury of the credit balance Clinton left it with and turn it into a huge deficit.  Maybe a drop in the dollar's value will give a temporary boost to exports, but that won't go anywhere to offset the tragedy.  Bill got blown, but George has blown America : her finances AND her moral credibility.  I don't know which is worse.  I just don't want to think about it.
395601
1. Got into a senseless war with Iraq.\n2. Sent all the good jobs overseas.\n3. Imported workers from India to replace Americans in High Tech jobs.  Computer engineers and programmers cannot find work in the US.\n4. Planning on importing more illegals to replace Americans doing lousy jobs.\n5. Threatening to go to war with Iran over nothing.\n6. Transformed the US from a superpower into a second world nation.\n7. The dollar is at an all time low and is now currently worth about 3 gold standard cents (The value of a dollar in 1970 was 100 gold standard cents.)\n8. Caused the US to lose the respect of the world.\n9. Got us into excessive debt.  China owns about 60% of that debt.\n10. Reduced the US economy to rubble.\n11. Faked unemployment reports - they only show whos collecting unemployment and not whos really unemployed or UNDERemployed.  After 6 months your counted as employed even when your really not.\n12. Eradicated the middle class.\n13. more...\n\nPeople who say that he is a good president are usually on the public paycheck somehow.  People like teachers, policemen, mailmen, etc.  - or their kids.
649738
Mr. Rogers (jrogers) obviously doesn't understand economics. The US economy has very serious structural problems that the Fed nor the American people can fix easily. If they do without some kind of crash, it will be a long and financially painful process for all Americans. Some of the problems are - National debt, government debt, dependence on oil that has limited supply, negative savings rate in 2005 (first time since the Depression) = weak dollar, inflation...the list goes on. \n\nChina will have economic struggles when the US starts falling apart as the US is China's largest buyer. But in the long-term, China has a much stronger base and will still be able to maintain growth throughout US decline as their local consumer market matures. \n\nThis is something that could have been predicted 10-15 years ago. We are now in the middle of it. Wait 20-25 years and you will see the US struggling to hang onto the last vestiges of it's once great and formerly the world's largest economy. Large strong economy + military/political might = Superpower.
974673
the current rate need not be extended for your hypothesis to take effect\nthe damage is done, it is irreperable\ni predict that the country will financially crumble by 2012\nthere will probably be another party in power and they will take the fall for the ineptness of the republican party
866681
Well-- no we shouldn't.   A depression/recession is predicated on the fact that GDP falls for a given amount of time.  GDP is still growing.\n\nGold going up was mainly on speculation and the fact that for a while there all commoditees were going up (due to demand and speculation).\n\nInterest rates are controlled by the fed via setting key rates and contorlling the money supply.\n\nWhat IS going to hurt us bad is the ever growing national debt.  Not the same as the deficit-- but that continues a well.
849933
It would create a huge underclass in the US.  This would in turn be a huge burden for the American tax payer.  The country would probably collapse.  Many educated Americans would move out of the country to protect their money.  I know I would.\n\nCheck out WWW.Numbersusa.com
206036
No.  As is always the case in war time most of the current deficit is going to defense spending.  Even before the 1930's when the government used to try to keep the budget balanced and the U.S. out of debt, there was always a budget deficit in times of war.  the amount of money spent on foreign assistance is a very small portion of the U.S. Budget.
1072549
i hope not.  Because ALL the people in the US are contributing to the economy.  Just think of the monetary implications it would have on the stock market and economy.   It scares me
345037
i assume you mean the U.S. deficit...just keep printing more money and it will be ok.....lol
614164
US trade deficit is too small compared to its GDP (nearly $12 trillion).  While trade deficit is a minor problem, global supply-demand will keep varying over the years and this could change the trade-deficit. Further, the deficit is paid by foreign investment, which means Americans aren't saving enough. When the interest rates are very low they won't save much money but spend it on commodities which includes importing from overseas. When the rates go up there is incentive to save it in term-deposits and other safe investments.  It is a tricky complex phenonmenon that will get resolved on its own with time but as of now it is not an alarming situation.
61438
No more resulted. How can bringing less money in result in more revenue? The war effort is what raised the deficit the most. We had a budget surplus before Bush took office. The White House has now revised the 2005 deficit upwards to $427 billion. The proposal to extend the tax cuts could exceed 2.3 trillion. The accumulated trade deficit from 1971 through 2003 in dollars not adjusted for inflation is $4 trillion, 45% of which has come in the last three years.
1023899
Yes-eventually debt will be addressed. You can put it off for so long but its still there. Not one President-not one has done much to improve it. And many refuse to see it. History shows it happens-time and time again. And when it does many will blame that man instead of all. They will run out of places to cut. And than they will work on trying to hold it. But it will come.
1036423
It doesn't, the Federal reserve raises rates to slow the economy to try to keep inflation in check.\n It wont work this time because bush has put us 8 TRILLION in debt! \nWhen the people buying that debt decide they don't want to buy the debt (bonds) anymore then we are SCREWED!
864662
It will affect it very positively, over the long haul, provided the dems get their agenda pushed through at some point. Here is why; basic economics.\n\nFirst off, here is a fact; Despite the "pro-business" mantra of most republican administrations and congresses, and most corporations supporting republican candidates for this reason, the stock market actually does better on an annualized basis under a democratic president or congress.\n\nSecond; the war has been the most obscenely needless expense in the last 30 years. The republicans that were in control seemingly forgot one of the most important republican issue, and THE most important non-morality-issue Republicans stand for. Its the basis of the existence of the party; "Smaller government and lower spending." With the US going the way of Orwell's 1984, suddenly the Democrats were the more fiscally responsible choice to make for people who vote with financial reasoning in mind.\n\nLast; odds are good that the dollar will increase in value against foreign currencies  going forward, as people who have been betting in the dollars continued fall against the world basket of currencies because of bad fiscal policy and continued printing of useless fiat currency to finance the war, will likely cover their bets, bringing some value back as people grow more positive the reckless spending will stop. See, to finance the war, the government has been printing money as if that has no effect on the value of our currency, and they do this in the form of debt, (not actual "printing" of hard currency, but for the sake of argument, we'll call it "printing") effectively decreasing the value of a dollar for every dollar they "print". As the perception grows that the war will end sooner rather then later, and the Dems will reign in reckless spending and, even if necessary raise taxes to ensure we stop borrowing from ourselves, the value of the dollar will increase, as there will be less and less of them for every dollar that gets paid off, even if its just on paper.\n\nAnd because of market speculation, this will begin to happen well before any change in policy actually occurs. \n\nFinally, because of the increasing value of the dollar, it will be able to purchase more on the world market, bringing down commodity prices for oil, gold, and anythign else we buy from other countries to keep our country running. Cheaper commodities means more money in consumer and coproate pockets, which means more spending, and more purchasing, and less consumer debt, which in turn causes more wealth creation. A dollar can be spend a hundred times and taxed a hundred times, and still be a dollar. But that dollar brought in more revenue the more it was spendt. More revenue = stronger nation = better economy overall. Plus, if history holds true, people's retirement and investment portfolios will see better increases, creating more wealth and a better standard of living for retirees, as well.\n\n\n********Edited: On a side note, I must say I'm surprised that somebody gave my answer a thumbs down *and probably more to come now) --- y answer is derived from *actual* facts and historical data, along with a knowledgable explanation which, whether you like it or not, is not an outcome I predicted because I hate republicans, or love democrats, or both, (as those are all not true, I hate the concept of the political party altogether,) but rather assembled using an understanding of macroeconomic policy, with at least enough education behind my answer to explain why in the grand scheme of things, this change is more likely to be good then bad. You people are so partisan it absolutely makes me vomit.
795151
Here's just a small part of why the dollar is weak and none of that's good. It is correct that it will make the trade deficit LOOK better than it is. The stock market has very little to do with the economy-it has to do with buying and selling. For the most part, the stock market today loves the inflation numbers which say inflation is low overall, but largely because it includes prices of vehicles, clothes and luxury items most of us can't buy. Food and housing costs are way up-and that's what most people need first. Corporate earnings are falsely inflated by cost cutting not by true growth. Our ever-increasing deficit-yes, our Treasuries-our US debt is 51% foreign owned. China is our largest foreign debtor. Most pundits as well as the administration don't want to tell us the bad news because US optimism-the will to shop-and the US consumer's desire to ignore problems-leads to "growth" and "profits". Sure, War is Peace and Debt is Wealth.\n\nLONDON (AFP) - The dollar sank to a 20-month low against the euro and a 14-year low against the pound as investors seized on weak manufacturing data in the US to drive the currency lower, dealers said. \n\nThe Chicago PMI index of business activity fell to 49.9 in November from 53.5 in October, well below analysts' expectations for a pick-up to 54.5, data showed.\n\nAnalysts said the data could portend a fall in the closely watched ISM manufacturing index which is to be published on Friday.\n\nCalyon currency analyst Mitul Kotecha played down talk of a recession in the US, which has been driving heavy selling of the dollar in recent days.\n\nThe euro has gained 3.7 percent agaist the dollar since November 21, taking it from 1.28 dollars to its present level of 1.32.\n\n"It's maybe too early to talk about a recession," said Kotecha.\n"Clearly the risk of a recession has increased in recent months.\n\nBank of New York currency analyst Michael Woolfolk said the Chicago PMI, combined with other income and spending data, "were the one-two punch that knocked the dollar back on the ropes, leaving little doubt over the near-term direction in the beleaguered greenback".\n\nLONDON (AFX) - The dollar stayed weak, hovering around the 1.32 mark against the euro and staying at 14-year lows against the pound following disappointing US weekly jobless claims numbers. \nUS jobless claims surged by 34,000 to 357,000 in the week just gone, well below analysts' forecasts for a fall in claims to 314,000, although the figures are likely to have been distorted by the Thanksgiving holiday. \nThe news broadly offset a stronger-than-expected core PCE deflator, the measure of inflation favoured by the Federal Reserve. \n"A larger than expected rise in jobless claims, even though the Labor Department says the Thanksgiving holiday skewed the data, is being emphasized by the market more than the unexpectedly firm core PCE deflator," said Jamie Coleman at Thomson IFR Markets. \nThe PCE measure showed that core inflation rose by 2.4 pct on an annual basis, above expectations for a more moderate 2.3 pct.
720102
Bush designed this economy to run on a deficit based primarily on reality. Once the real estate number are taken out of the equation, then the economy has been loosing ground since 2000.
871464
I can't find the deficit, but here's a graph that shows the U.S. national debt as it was created over time.\n\nAt the time Reagan left office, it was right around $4 trillion, or about twice what it was when he took office in 1980.\n\nhttp://www.brillig.com/debt_clock/faq.html