Who is responsible for the enormous deficit in our country?

Question

Karen---well please excuse me for trying to enlighten myself. Sh*t, what can I do to please you, oh greatness. And your answer didn't help either!, so my "silly question" is still open for business.

Come on people--I'm not an idio. I KNOW that our government is directly responsible for the huge deficit (although we, the people, make the government---so we're of course not doing anything to help the situation). But what I'm asking is WHO is responsible?

"Political scientist Kevin Phillips reported that, for example, in 1981 the United States was the world's leading holder of investment credit totaling $141 billion, but by 1988 this country had slipped to become the world's leading debtor nation, owing approximately $700 billion" (James Jennings)

source: James Jennings (editor). Blacks, Latinos, and Asians in Urban America: Status and Prospects for Politics and Activism. Westport, CT, USA: Greenwood Publishing Group, Incorporated, 1994.

Answer 1

Well lets see..
Clinton era we got into the black...
Bush... A few TRILLION in the red!
Take your pick.

Answer 2

You can blame normal people as well. People in western countries have been decreasing their saving rates in the last few decades. This means that domestically there is less funds for business to use to invest, which means that they have to gather funds from outside the country. Which is not a problem as there are plenty of countries who have high saving rates and can lend their funds out. THis increases the current account deficit.

So it is not only government spending but the lack of savings that has increased the deficit.

Economists are split on whether its a bad thing or not. While you have to repay the loan (plus interest) a country like America should be able to do that so there is no harm in increasing your CAD.

Answer 3

An awful lot of it has to do with our own standard of living. Of course wars cost money, but who gets most of the money? Americans. We produce the armaments, tanks, bombs, planes, etc. So if we spend a trillion dollars, most of it goes right back into the economy.

This debt, economists seem to say, is a normal result of civilization. I'm not smarter than them, and the deficit has been flitting around, up and down and all around for my lifetime, and I'm old. We're still in one piece. The USA is still at the top of the heap in most areas. Socialist states of Europe, (Austria, Finland, England) are in pretty bad straits I guess, but the US seems ok for another generation or so.

China is upcoming, so who knows what will happen, if anything, when their economy is bigger. Probably they will become more aggressive, spend all their money on armaments, and we will follow suit. Just a guess.

Answer 4

First ask yourself what a deficit is?
Hopefully you don't think a deficit is the US buying things from other countries without us giving them anything.

Then ask yourself how long has the US had a deficit and when are we most economically prosperous with one, or when we shrink it?

Answer 5

The government.

Answer 6

You're kidding, right? Obviously we all live beyond our means....there are too many fat, lazy people here....whether they are gov't officials or your average a**hole lazing on his couch eating enough food to feed a large family in a third world country....our gov't has ensured, by providing $$$$$ to all his "people" that we will be in debt forever. What a silly question.