Larger Amounts Of Our National Economy example essay topic

"Government that governs least governs best". Thomas Jefferson 43% percent of the National Income (spending) is controlled by state and local sectors instead of the prominent private sector. Why do they immediately control how deep in debt the whole country is in? In the end it is the following generation that will unwillingly be endowed with this record high national debt and growing deficit. It is said that in America our government has marginal influence on our economy; that it does not get involved with our market. Laissez-Fair for example a core policy which America proudly claims to practice, and is included in every US History book in the nation seems to be just that... history.

Such accusations are being heard across the nation as Americans are greeted every morning with a headline or two reminding us of how much more in debt our country really is. Many are quick to point the finger at someone; anyone (Bush, Iraq etc.) But the truth is that Bush inherited a receding economy from the all famous Clinton administration. In addition to his inherited downward slope, the events that occurred on the 11th of September did not help, in fact it had a cataclysmic effect on the economy. At this point America was confused; it was only a little over a year ago that politicians were bragging about a $557 billion surplus! (2001) The US was at an all time low and all it could do was sit back and wait for things to turn around, things that made our great economy work; like confidence, security, things that kept consumers want to keep spending. And like the great nation that America is; slowly but surely things did begin to turn around, but the decision to retaliate the attack on our demoralized constitutional republic proved to be just another setback on the latter of the goal to reach a strong and secure economic standard.

This is not a history paper but this information will later be used to make a point. The total economy is made up of 2 basic components: the portion dependant on federal, state and local government spending is called the GOVERNMENT SECTOR, the part remaining is not dependant on government spending. In fact it depends on growth of national productivity, savings and real incomes. This portion of the economy is called the PRIVATE SECTOR.

In the past the Private sector rightfully so was much larger than the Government sector, but as stated before the government sector controls 43% of our economy! This is not including added economic control by un-funded government mandated regulatory compliance costs that can raise this percentage of power to 57%! laissez-faire-faire? where? (refer to pie chart: web) One must question oneself if the countries name to whom this chart belongs too was not given could one have imagined it belonged to America? Moreover studies show that the 43% our government controls costs $12,990 per man, woman or child. That means per family of 4 it costs $51,990! These facts are serious indicators that something is wrong. To support this spending, all earnings for 5.3 months are required from the average worker.

The degree of government dominance over our economy is unknown to many, and in addition is not what the foundation of this country was built on. The following chart shows how government spending has gradually increased over the years, controlling larger amounts of our national economy. It does not show the path America should be on. Continuance of this can lead to many changes in our form of government. Countries that follow that way of governing are viewed as Socialist. (refer to pie chart: web) America will hopefully not move in this direction, as it's citizens would not allow it, but look how far it's already gone.

Furthermore one would think all this money would be enough... it's not, our nation is in about a $7 Trillion debt as of January, 1st, 2004. So where does most of our money go? To pay the interests on these massive loans our government keeps approving. The future generations will be interested to know why they will be paying debt from decades in the past, and essentially that is what will happen. It is the future generations the will pay for all of the nations "borrowing" now. This nation consumes on credit... the future nation will pay for it.

It is calculated that each child will automatically have a debt of # 23,270 before they enter kindergarten, and this statistic is rising. A horrid threat to the home of many families is the nations increased dependence of federal debt. When total Federal Government Debt is totaled and then divided by the nations estimated population the results show that every person would be in debt about $25,099 and rising. Rising because even knowing this on September 30th 2004 federal debt increased $596 billion! So again everyone is a critic... who do we point the finger at? ...

Bush? Iraq? ... Osama? Who? It's a good question, but the truth is leadership in this country does not appear to be to concerned with the hole we keep making larger and larger.

Let one thing be clear, it is not all 911. Too many people think this spending is going on as a result of what happened that day, and though it may play a big part it is not that reason alone. During the period since the 911 terrorist attack, federal government debt increased 1.5 trillion. This total amount or not anywhere near the actual amount that went toward our national defense. National defense spending did increase... along with non-defense spending too.

That is where the room for improvement lyes. After the last presidential elections America was promised wonders, hopefully half of them will be heard of again. It just does not make any sense. So many American tax payers are ignorant to this information, one must be able to know the facts so that something can be done.

It is a definite flag when stats show that the total government share in our economy has grown faster than our economy itself! Free Market, and us being a constitutional Republic, I am not saying these things are in danger of being overruled, but what I have come to realize from my research is that our form of government is evolving. It is much larger and more powerful than ever before, and as history tells us; that is not what this country was supposed to be about. I don't believe our leaders are taking us down just because they are very concerned with us being a strong a powerful nation.

I do however see our spending habits to be a living cancer in the shadows, and that goes for every American. According to the research firm Card Web. com reported in 2003 that the average credit card debt of US households was on average $9,205 on one card! Up from $2,966 in 1990, that is 310% higher. If that's not scary how about the same research firm reporting that in the past year household debt increased 4 times faster than the economy!

It seams that the majority of the population consume on credit. Credit most can't afford, as a future graduate I know things are going to be hard when I begin to receive bills from student loans, but it is a reality. The truth is credit is a necessity, we need it without it many of us wouldn't have half the things we own, but we must be self-accountable! If we have the ability to consume on credit we must make ourselves responsible for paying it back...

Using plastic does not lessen the cost of the product, and once you do purchase it; it is yours! Just like you have the ability to call that product yours you have the obligation to pay it back, after all the product is yours. The same in my opinion goes to this great nation I call my home, we are borrowing massive amounts of money and are living the fruits of what we do with it. Therefore it is our responsibility to pay it back!

We chose to borrow it, we chose to spend it, now it is us who should pay it back not the future. What would that say of me if my grand kids would have to pay for something I consumed in my lifetime? What would it say of our generation if they were stuck paying for a debt that we gave them? Happy Holidays America's Economic Debate. Principles of MicroecnomicsOnline Cites: web clock / web.