Running Head: GOVERNMENT OUTSTANDING DEBTS
Government Outstanding Debts
GOVERNMENT OUTSTANDING DEBTS
Explain how the Federal Government Finances and Services its Outstanding Debt and how
the Federal Deficit is a Burden on Future Generations
When government spending exceeds its revenue from taxes, it experiences a deficit which can
be financed through various initiatives such as increased taxation and reduced spending. It is
crucial for the government to reduce the burden of public debt and all outstanding debts that are
owed. It is also important because the federal deficit is a burden to future generations because
they will be taxed in order to pay the public debts that resulted from current's generation
increased use and consumption of public goods. The heightened consumption by the present
generation decreases the growth of capital goods and limits investments. As a result, future
generations will have little wealth and stock to their advantage (O'connor, 2017). It is therefore
essential for the government to engage in rigorous strat...
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