Staff Shortages

The economy is slowing, as baby boomers begin to retire, the government struggles to pay them back. But baby boomers are not the only debt holders on the United States government. In fact, the United States is in debt by about 14 trillion dollars! Government debt is an accumulation of budget deficits. The amount by which government spending exceeds income over a particular period of time is called deficit spending.

Many economist experience controversy when discussing government deficit spending. It has become a central point of controversy amongst economist. Milton Friedman, a economist, thinks that the problem with the government is not that it doesn't balance it's budget but that it spend too much money. However, there are three different types of outlooks on deficit spending.

Traditionalists argue that by minimizing as many deficits now, it will later benefit the economy. Many traditionalist have a very logical mindset. They believe in not spending more than what the government takes in. A budget deficit is a drain on the long-term economy, in their eyes.

Ricardian viewers believe that a budget deficit represents trading taxes in the future for taxes today. That is, if the government spends more than it taxes today, then it must tax more than it spends tomorrow. These economist live by a more carefree style, going about their day thinking, "Why worry about tomorrow before we have to." Ricardian supports think the public spending will be adjusted due to their necessary future increases in taxes. the budget deficit should have little long-term effect on economic growth.

The third economist view is somewhere in the middle. They state that the deficit spending is not an accurate measure of fiscal policy These economist recognize the affects the government can have on savings, spendings,and investments. However, they think that budget deficits is an incomplete way of measuring these factors.

What ever economic view you agree with, there is no doubt that the government quite often spends more than it collects in taxes. Obama may be to blame for the annual increase in deficit. This years proposal shows an annual budget deficit of about 50% increase. This is higher than it has ever been. This raises debt by an extra six percent! Obama has risen more debt than any president ever in office.

"The Obama deficit is different in character. Unlike other past presidents' defi