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House Market Crash of 2008
The personal saving rate of American households has been declining since 1980, which is why the national savings rate is so low. An example of the saving deficit was the house market crash of 2008. A lot of factors went into this including not needing documentation of income to get a house loan, adjustable rate mortgages, and low down payments. This huge problem was caused by the saving deficit, which is why these deficits need to be fixed; to avoid big problems like these. -
Budget: Federal Budget Deficit Due to Mandated Programs
Mandatory spending has increased on Social Security, Medicare, and other mandated programs. In 2011, the budget exceeded $2 trillion. These payments consume most of the revenue each year. -
Budget: Federal Budget Deficit in 2013 Below 1 Trillion
In 2013, for the first time since 2008, the federal budget deficit is below 1 trillion at $680 billion. This was because the economy was stronger, increasing income and therefore increasing taxes paid to the government. There was less government spending with diminished participation in Afghanistan, and there was more government revenue in total. Because the economy was better, there was also lower unemployment insurance benefits. -
U.S and China Trade Deficit
In 2015 the trade deficit between U.S and China $367 billion. The trade deficit exists because the U.S only exports $116.2 billion, while it imports $483.9 billion. The deficit keeps growing because the imports are rising faster than the exports. The United States imports consumer electronics, clothing, and machinery from China. -
Bipartisan Budget Act
This act was passed in order to fund the government without breaking the laws established in the Budget Control Act of 2011 and to increase the size and scope of the government. It suspended the debt limit until March 16, 2017, increased discretionary spending caps established in BCA by $50 billion in 2016 and $30 billion in 2017, and increased spending on Overseas Contingency Operations. -
President Obama and Leadership Deficit
President Obama proposed a budget for 2017 but the Republican Congress rejected it. President Obama’s proposal included more active government and higher taxes, with a 28% rate cap on individual tax deductions and $375 billion worth of savings in federal healthcare spending. -
President Obama and Leadership Deficit cont...
If enacted, Obama’s proposal would keep the federal debt at its current level of 75% of GDP through 2026. Both republicans and democrats continue to make fiscally irresponsible promises, and the federal debt will not improve unless they find a middle ground that is accepted by all.
https://www.washingtonpost.com/opinions/how-our-leaders-could-start-reducing-the-federal-deficit-now/2016/02/09/9b639702-cf6a-11e5-88cd-753e80cd29ad_story.html?utm_term=.29f5450e320e
