Who Wins and Who loses From Public Debt Research Paper

Who Wins and Who loses From Public Debt - Research Paper Examplee of the case of United States where public debt amounted to $15.5 trillion much of which has been used to finance wars and wasteful conspicuous consumption (Al-Jazeera, 2011). The stimulus package of President Obama which was meant to bosom prime the US economy, which in principle been good, did not worked and only contributed further to the US mounting debt. As a result, Standard and Poor downgraded the credit rating of the United States from AAA credit rating, to AA+ (Bloomberg, 2011). This manifested U.S. governings inability to cut outlay and put its fiscal management in order. In addition, the intramurals of US government officials on how to deal with its public debt also contributed to the downgrading of its credit rating. In this regard, it is the familiar American public who preoccupied as a result of its public debt which was shabbily managed by its politicians.The amount of debt that the US economy incur red is staggering. In 2012, it is expected to reached $12.7 trillion (usgovernmentspending.com, 2012) without any end in sight. Ideally, the growth or surplus of an economy should go along the amount of interest of the public debt for the given economy to repay its debt. US is already way passed this take down where it could service its debt without going deeper into debt, let alone repay it (Al Jazeera, 2011). According to the Congressional Budget Office (CBO), spending in 2001 to 2009 increased by 6.5 portion of GDP while revenue decreased by 4.7 percent of GDP resulting in a substantial deficit that has to be filled with further spending finished debt that resulting to the current astronomical deb. In 2011, GDP was expected to rise by $100 billion with a revenue of $2.16 trillion but spending amounted to $3.45 trillion that resulted to $1.5 trillion that is again to be borrowed compounding the insuperable debt that the US already haveGiven the rate of spending compared to rea lized revenue, it is very clear that the general public