Within the regime of Obama, American economy seems to have had severe blow owing to $19 trillion deficit. It must give a terrific jolt to force American netizens to cut expenses. This huge volume deficit will crash the national economy of America. New economic reform and innovative debt management strategies must be tailored to tackle such a gigantic depression in American economy. There is total $19,012,827,698,418 deficit for 2015.
Obama’s Whimsical Decision Speeds up Financial Deficit in US Economy
Economists and experienced statisticians are trying to find different causes of such a long lasting deficit in the economy of America. Many blame Obama’s whimsical decision to launch the Obamacare program which has increased the expenses of US administration. To spoon feed the healthcare industry and run the expensive Obamacare, lot of fund is spent by American government. Therefore, new economic development strategies are needed to tackle this recession. Obviously, people have to take the burden of this severe depression. US senators must be cautious about the aftermath effect of the $19 trillion deficit on common citizens in America. In this connection, US Congress has already planned to bring a new bill suspending the debt limit for managing this huge debt. Debt ceiling suspension will help American higher authority to borrow more dollars to reduce the deficit uber. The government will have no occlusion or legal obligation to collect proceeds from various agencies to patch up the loopholes by handling the $19 trillion debt. American citizens and private sectors will have to bear the burden of financial deficit to boost up the economy of America.
CBO Projections to Control Deficit in US Economy
Obama is facing criticism from his senators and countrymen due to his indifference in the matter of debt management in a perfect way. Investment on social security, healthcare and Obamacare must be controlled by tailoring new affordable financial budget to overtake the recession. However, anti-Obama groups protest strongly against this sudden drive to suspend the debt limit. They opine that the new legislation or rule on debt limit issue will be a setback to hamper GDP growth putting the national economy in uncomfortable position. The government of America must think twice before going to take a leap into the darkness. CBO or Congressional Budget Office has made a forecast sending the good message to people confirming the fast nosedive in the pecuniary deficit without jeopardizing the GDP growth of the country. CBO scorekeepers expect the speedy improvement of the economy by managing the unexpected debt. $19 trillion debt for 2015 will go down to approximately $426 billion. CBO projects have tracked the national debt and new innovative debt management/settlement strategies adopted by US Congress members to have relief from financial downtime. The current projections made by CBO showcase that interest rates projected by CBO experts will be lower within the span of 10 years. There will be handsome reduction of the debt in 2015 to 2016 by approximately $769 billion. Government will have to cut the expenses on social security, healthcare and defense to collect extra fund for handling the deficit. Capitalists must bear more taxes to reduce the present deficit. At the same time, CBO warns that this debt management may face new obstruction in the event of poor performance of private sectors to run the business.
Simple Math to Prove $19 Trillion National Debt
The economic condition of US starts running down with massive depression. US debt is now around $19.012 trillion which is the biggest challenge to Obama to overtake. The American debt touched $1 trillion within over 12 months. By 2014, $18 trillion overspending amount was recorded. It was on fast autopilot as slowly the deficit was becoming severe to crash down the US economy. Experts confirmed the steady and fast nosedive in the economy of America. The scorekeeper was busy of updating the dashboard by showcasing the running debt scenario in the country. The national debt clock of America was ticking with alarming signals for US citizens to know about the upcoming risks. The national public debt is calculated based on the principal amount of marketable and non-marketable securities. As on 01/29/2016, the total intragovernmental holdings amount is $5,355,672,500,702.44 and the public debt amounts to $13,657,155,197,715.49. So, the total debt amount will be $19,012,827,698,417.9 for Americans to bear. Debt per citizen is calculated $59,407 and debt per taxpayer calculated $160,518.
How Does Obamacare Program Causes National Debt Amounting to $19 Trillion?
Obamacare plan gave much relief to million uninsured Native Americans However, the side effect of over expenditure on healthcare needs to be analyzed to showcase the actual scenario in the US economy. Last year more than $3 trillion was overspent for facilitating people with better healthcare packages at low rates. 5.7 % increase in the outlays for improvement of public health is really disastrous to accelerate the asking rate of national debt faster to make it over $19 trillion deficit. Medicaid was rewarded unexpected huge financial stimulus in spite of earning limited profits in the last year. That means money overspent on Medicaid is considerably less than what this government aided healthcare has earned profits. This caused terrific financial crunch to force Obama to opt for the debt ceiling missile to retaliate himself from the economical disaster. Total overspent amount on prescription medications accelerated by 12.2 percent in the previous year. Obamacare requires unexpected overspending to run smoothly. In addition, with the inception of Obamacare program, the out-of-pocket expenses were drastically down. More uninsured persons were brought under the shade of Obamacare. They were given strong medical aids and financial support to live healthy. However, this unprecedented over-expenditure created the lacunae in taking the national debt to such devastating $19 trillion.
New Entitlement Plans
To combat the tough situation, US Congress must take fast initiatives to marginalize the deficit by opting for new entitlement plans to control the increase in the deficit.
There must be a balance in designing the financial budget by reducing the heavy expense in few sectors. Some erudite persons have couple of different opinions regarding the possible debt settlement issues. According to them, US Congress should wipe out the debt ceiling or debt limit legislature permanently. Now-a-days, debt ceiling or debt limit is of no use to people due to the cumbersome depression which lasts for long time. So, government has to borrow or collect fund in large amount to revive the condition of the national economy of America.
The permanent removal or deactivation of the debt ceiling law will be helpful to Congress to take care of the national economy properly. At a seminar, one of senators of US Congress declared that debt limit tool is obviously a weapon to the government to retaliate during financial crunch. When the federal spending accelerates fast, there will be autopilot to keep the increase in deficit during upcoming years. Therefore, US government must need a flexible debt management device to overcome the risk. However, new entitlement schemes must be designed after a meticulous research and analysis to introduce new debt management program.
The US government has overspent $19 trillion and it has created unfathomable lacunae to damage the economy. Hard earned dollars of US citizens have been overspent by the present government. The debt explosion has had paralyzed the smooth development of GDP.
The simple calculation is that in the case of $1.1 trillion deficiency on the total $3.8 trillion financial budget is the 40 percent overspending. The faster the financial stimulus and new reform will be introduced to reset the debt, the more opportunities for people in America to experience new sunrise removing the cloud of recession in America.