National debt, national problem
- posted: 13 Nov. 2007
- scrollnews@byui.edu
Uncle Sam Owes Big
Americans who worry about their Visa balance and credit scores might want to add something else to the worry list — their own government’s spending record.
While a jump in federal deficit during wartime is almost inevitable, should financing a war bleed a nation dry of its economic reserves?
As of 2006, national debt stood at $8,611.5 billion, according to the US Census Bureau. This was a significant leap from the figure before the Iraq war.
In the year 2000, the census reported federal deficit as being $5,628.7 billion.
In addition, recent studies show that the Bush administration has largely underestimated the funds needed for the healthcare of over 750,000 returning veterans, according to Newsweek.
Furthermore, on Oct. 22, 2007, Bush requested an additional $46 billion for security equipment for troops in Iraq.
Now what?
So as the nation digs itself into a deeper hole of debt, should Americans be worried that this shaky economic status will lead to the nation’s eventual ruin?
Ronald Nate, BYU-Idaho economics professor, said there is no need to panic.
“If we look at federal spending trends over the last 30 years, we will find that we are not out of balance. Everyone worries about the deficit, but what we really do is borrow from other government agencies. We are basically just shuffling money around,” Nate said.
While spending on defense is certainly a large portion of the nation’s budget, other factors also play.
“If we are worried about budget deficit, we should not look first to war spending. Most of the deficit comes from social programs such as welfare and healthcare,” Nate said.
However, political science professor Trent Rose disagrees.
“In principle, during times of war a large country has to be flexible in its spending, but we as a nation have to understand that at some point we have to pay all of that money back,” Rose said.
Rose says something has to be done if the nation wants to avoid financial devastation.
“What are our long term plans? How long is this war going to continue? To think that we can fund this thing inevitably is ridiculous. It is just too much,” Rose said.
Are we doing anything?
Dan Whiting, communications director for Idaho Senator Larry Craig says that Craig has several ideas for reducing federal debt.
“Senator Craig is a co-sponsor of the Stop Over-Spending Act, and has been a long-time champion of the Balanced Budget Amendment to the constitution since nearly 1980. It is the first bill he introduces every session of congress,” Whiting said.
Congressman Mike Simpson of Idaho’s second congressional district also has a few theories for reeling in the deficit. Simpson’s public relations director Nikki Watts says that the best option is tax cuts.
“The number one thing that will lower the deficit, as congressman Simpson will tell you, is to stimulate the economy. The best thing we can do is lower taxes. When the economy is running great, the deficit runs at a much lower rate,” Watts said. 
