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Mathematics & Economics
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English (U.S.)
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National Debt: The Aftermath of Great Recession of 2008

Coursework Instructions:

During the Great Recession of 2008, there was an intentional increase in the federal government budget deficit (that concurrently led to an increase in debt).  Now that we have pulled out of the Recession, many individuals feel it is time to bring the federal government's budget back into some sort of balance.  Advocates of bringing the budget back into balance believe deficits impose a burden on future generations and critics of balancing the budget feel that the deficit is only one piece of fiscal policy.  
Read the Publication "Why We should Never Pay Down the National Debt"
https://scholarship(dot)law(dot)gwu(dot)edu/cgi/viewcontent.cgi?article=1025&context=faculty_publications
from The George Washington University Law School that provides an interesting perspective outlining both the costs and benefits of increasing the national debt. The author makes a case that the federal government should continue to run annual deficits to finance long-term investments such as infrastructure while collecting sufficient tax revenue to pay for the government's annual operations each year. 
In contrast, read "Why Should We Worry About the National Debt".
https://www(dot)nytimes(dot)com/2017/05/09/insider/why-should-we-worry-about-the-national-debt.html
The author discusses how borrowing can be an expensive way to raise money and that the United States must constantly repay its debts.
-What do you think?
In addition, please respond to the following:
-Based on what you have learned, do you feel fiscal policymakers should make balancing the government's budget a high priority?  Why or why not?
- How will reducing the government budget deficit make future generations better off?  How could reducing the government budget deficit harm future generations?

Coursework Sample Content Preview:

National Debt
Student’s Name
Institutional Affiliation

National Debt
The Great Recession that occurred in 2008 led to an increased rate of unemployment, poverty, distress in financial and housing markets, and ruinous budget cuts. A budget deficit takes place when the expenses are more than the revenues collected. Indeed, it leads to increased national debt. From my perspective, the federal government should borrow money to fund long-term projects that will generate more revenues so that it can repay the national debt without using budget surpluses.
Neil Buchanan asserts that rather than focusing more on how to reduce the national debt, the government should commit to long-term plans that facilitate the rise of debt in a controlled manner. In other words, the borrowed money should be used to protect the interests of upcoming generations (Buchanan, 2012). For instance, the state can use the money to develop technology infrastructure to reduce the rate of unemployment for future generations. The two primary concerns about federal borrowing include the possible impacts on financial markets and the diversion of the economic resources to unproductive projects. In early 2016, the United States of America (USA) had a public debt of $13.7 trillion. During that year, it borrowed $95.6 trillion. Although the government repaid partially, by the end of that year, the remaining debt was $14.4 trillion (Appelbaum, 2017). As such, it is clear that the government must borrow money every year to fund its projects and run all its operations smoothly. However, what matters the most is whether the borrowed money is used for projects that will generate money to the economy in the future or not.
Based on the knowledge obtained after reading the two articles by Appelbaum and Buchanan, fiscal policymakers should not prioritize balancing the government’s budget. In other terms, it is not bad to borrow money. The most significant pro-growth budget policy is to ensure that the federal government has a budget deficit and that it has a controlled and sustainable national debt (Buchanan, 2012). Specifically, balancing the budget does not mea...
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