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Rationale for the USA Federal Budget Deficit

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Explain why the United States has ran a federal budget deficit for the majority of the last 80 years.

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Solution Summary

The expert examines rationale for the USA federal budget deficits.

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The United States has run on a federal budget deficit for the majority of the past eighty years because there has been no real reason, by incentive or otherwise, for the U.S. government to curb their spending. A host of variables contribute to this problem. Certain governmental agencies see that they are way underbudget on expenses, so they go into unreasonable spending at year-end. Those agencies know that if they are underbudget, their budget in the next year will be cut based on the amount of the variance. There is no real reason to ...

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