Budget Crisis is Especially Serious for Young People
By Alan Tarrab, 12th grade
November 6, 2005

* 2005 RMT Writing Contest Winner *

One of the most important issues facing the nation today is the budget crisis. The national debt, as of March 8, was $7,746,290,500,431.39. The main problem is deficit spending, where the government spends more money than it receives. As Sam Ewing put it, “The government deficit is the difference between the amount of money the government spends and the amount it has the nerve to collect.”

Congress is in charge of appropriations, but most Congressmen, eager to be re-elected, will keep taxes low and entitlements high rather than balance the budget. Traditionally, Republicans have been more concerned with keeping the budget balanced, but this is not the case today. Republicans control the White House and both houses of Congress, but the budget is in worse shape than in previous years.

Last fiscal year, the deficit exceeded five hundred billion dollars. Instead of balancing the budget, politicians prefer to spend money on what they feel is good for that nation. They will spend the money on programs that are more closely aligned with their ideals, such as military spending, spreading democracy, a new Medicare system that incorporates the free market, faith-based initiatives, education and testing and other entitlements.

The ability to decide how money is spent is power, and those in power do not want to stop spending because doing so will reduce their own power. In addition, to promote economic growth, they cut taxes, but cutting taxes without cutting spending increases the deficit. Eventually, the increased revenue will balance the budget, but then the Politicians probably cut taxes again to cause more economic growth. It’s a cycle of more economic growth but at the same time more deficit. The result: a rich nation with a poor government. Every time there is a surplus, if Congress gives tax cuts by saying that it’s the people’s money, not the government’s, then the debt has no chance of being reduced, but it may increase perpetually.

The interest on the national debt itself is a huge weight that the government must carry around. In recent years, foreign investors have lessened the burden. They are willing to lend us money, and they trust we will pay them back. However, this practice may change. If we continue to spend money without regard to revenue, investors might lose confidence in our ability to pay. Foreign investors may also threaten to sell our bonds all at once in order to influence our policy decisions. Getting credit will become harder for us. Higher interest rates mean higher deficit in years to come.

The budget problem is especially serious for young people. We are the ones who will have to deal with the debt because it will not disappear when those who incurred it die. Journalists can raise public awareness of the problem. Maybe then, politicians will be forced to watch more carefully how they spend our money. Sound fiscal policy is better than a new tax cut, a new invasion or a new entitlement.

Home | About Us| Students on the Issues | Teen Life | College Life| Creative Corner | Entertainment | Sports
Writer's Zone | From the Publisher/Founder | Role Models In Actions | Archive | Contact Us | Privacy