rs a year, but if the government wrote annual checks of $14,700 to all 7.7 million poor families in the United States, it would cost only 113 billion dollars a year.”Another area of waste in the government is its lavish lifestyle. The average American would show disgust if they knew about the private airplanes, limousines, health clubs, and especially retirement benefits that Washington officials have access to. The list of unreasonable expenditures that the United States government is endless. Take for instance the fact that “the government has spent over $3 billion in some years in decorations” is truly outrageous. The government also uses millions of dollars every year to pay for parties! These are just a sample of the things that government uses our tax dollars to pay for. There are many other expenditures that our government quite simply can do without. However, they choose to just add it on to our national debt.D. Consequences of being in deficitThere are some consequences of having a deficit. The most obvious would be that it increases the national debt. Higher debt causes higher interest expenses, making it much harder to balance the budget the next year. Higher debt whether we like it or not ultimately forces higher taxes, cutbacks in federal spending or both. Higher debt causes bigger drains on the American economy to pay interest to people and institutions in other countries. Defects tend to also drive up interest rates. Higher interest rates moves private money from those that do not have that much to those who have the most. From young to old and from poor and middle class to rich. Higher interest rates also discourage the business investment needed for economic growth. Higher interest rates encourage foreigners to let us borrow money, making the dollar more valuable, which worsens our balance of trade and costs Americans their jobs. As you can see being in debt does have harmful effects ...
