Question

why is the budget deficit of the US government one of the pressing macroeconomic issues in...

why is the budget deficit of the US government one of the pressing macroeconomic issues in the US economy today? please support by relevant data or graph from a reputable source

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Answer #1

Budget deficit is rising in USA, government debt has increased significantly. Budget deficit simply measures the debt of government. 2020 budget deficit is expected to be around $ 1.1 trillion. Government debt has increased to 108 % of GDP.

Further, President trump has announced tax rebate programs, so there is fall in the tax revenue of government. Problem of debt is going to become acute over the long run. it would affect credit rating of US government adversely.

Government needs to reduce deficit else it would affect growth rate negatively. Investors would find less worthwhile to make investment in US economy.

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