through borrowing was "politically smart" rather than "economically smart." Do you agree or disagree? Explain. 8. How did the U.S. government pay for the wars in Afghanistan and Iraq? 9. What impact did spending for the wars in Iraq and Afghanistan have on the budget deficit? 10. According to the film, when compared to other countries, to what extent is the U.S. debt compared as a percentage of GDP something to be concerned about? Why? 11. With increased foreign purchases of U.S. government debt by central banks of foreign countries such as China, what are the political and financial risks if these countries stop buying this debt? 12. Most economists agree that both tax cuts and additional spending are needed to stimulate the economy in a time of recession. In what ways does each of these policies stimulate the economy? 13. According to the program, entitlement programs such as Medicare and Medicaid represent the biggest threat to the U.S. budget deficit. What reforms do you suggest to help avoid an unsustainable increase to the debt? 14. What was the most surprising thing you learned from this video?
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- Fall '08
- Deficit, budget deficit, United States public debt