The National Deficit

The National Deficit - and goes negative for two quarters...

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By: Bryan Hamade
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The United States national deficit has only been zero once in the nation’s history under Andrew Jackson. The debt has been increasing over $1.5 billion everyday since 2006.
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The US Dollar will plunge in exchange rate and foreign investment will decrease. A recession could be triggered leading to layoffs, inflation, and expansionary monetary policy.
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The dollar is losing value compared with other currencies worldwide. For the first time in decades the Canadian dollar is worth more than the American Dollar.
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The Iraq War has already cost the American government three trillion dollars when one accounts for wounded pay, combat benefits, hazard pay, and all other costs associated with the war. If America doesn’t pull out soon the number is expected to double.
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The United States Real GDP percent growth has been decreasing steadily during the last two quarters. If the decrease continues
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Unformatted text preview: and goes negative for two quarters in a row America is officially in a recession. If America ends up in a recession then unemployment will rise as economic activity slows and companies are forced to downsize in an effort to compensate for the reduced economic activity. If the recession happens then this will further put strain on the dollars exchange rate leading to it being worth less and less. Investment will also be curbed and American bonds will begin to be sold. With economic decreasing and the US debt ridden no stone should be left unturned looking for an answer. Open legalization of Cannabis is controversial but it is a viable answer. The tax revenue generated from legalized marijuana would be great and could help stimulate the economy. There would also be less people in jails so less money is being spent housing prisoners....
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This note was uploaded on 03/22/2009 for the course ECON 1000 taught by Professor Williams during the Spring '09 term at UGA.

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The National Deficit - and goes negative for two quarters...

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