Arizona State University Budget Deficit and The National Debt Discussion

What is the difference between a budget deficit and the national debt? “Suppose you want to spend more money this month than your income. This situation is called a “budget deficit”. So you borrow (ie; use your credit card). The amount you borrowed (and now owe) is called your debt. You have to pay interest on your debt. If next month you don’t have enough money to cover your spending (another deficit), you must borrow some more, and you’ll still have to pay the interest on the loan. If you have a deficit every month, you keep borrowing and your debt grows. Soon the interest payment on your loan is bigger than any other item in your budget. Eventually, all you can do is pay the interest payment, and you don’t have any money left over for anything else. This situation is known as bankruptcy.” (http://www.federalbudget.com/). The current national debt is about $29 trillion. That means that each U.S. citizen’s share of the debt is over $85,000. Here is your chance to have the power to alter the national budget as you see fit. You can increase/decrease spending on areas or causes you think are important while also being able to increase/decrease taxes.The Budget Simulation (I realize this is from 2018 but it is the best free one  I have seen to work with for this discussion topic) can be found at http://usa.abalancingact.com/ (Links to an external site.) (Once you submit you do not need to include your email address or gender or age if you do not want).  I understand that you will be unfamiliar with many of the areas of the budget, which is fine. Only change the ones you feel are important. I included all of the areas of the budget for you to get an idea of what a gigantic task it is to satisfy all parties involved in the budget. After making all of your changes, look, and see how the budget changed.  You will now see how your changes altered the national budget. Please cut and paste this information into your discussion posting. In addition, state what parts of the budget you altered and why. For example, if you cut spending on national defense, please include why you did so. After completing the budget simulation, please remember to respond to one of your classmates’ postings. To receive full credit your reply must include more than a simple “I agree” or “I disagree”. You must include why you agree or disagree with the way your classmate changed the national budget.

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