The US Government Debt: Consequences, Causes, and Solutions

Authors

  • Min Xu University of Detroit Mercy
  • Suk Hi Kim University of Detroit Mercy
  • Hassan Moussawi Central Michigan University

Keywords:

Business, Economics, Finance, Gross Domestic Product

Abstract

This article discusses the three major issues of budget deficits and debt—burdens, causes, and solutions-- from the creation of the US federal government. Today federal government spending exceeds 20 percent of Gross Domestic Product (GDP), compared to the historical average of about 9 percent, fueling debt of historical levels. The only effective way to reduce debt level is to cut entitle programs and then set a tax rate sufficient, over the course of a business cycle, to fund government spending.

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Published

2016-03-01

How to Cite

Xu, M., Kim, S. H., & Moussawi, H. (2016). The US Government Debt: Consequences, Causes, and Solutions. Journal of Applied Business and Economics, 18(1). Retrieved from https://mail.articlegateway.com/index.php/JABE/article/view/829

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Section

Articles