What's the point of the budget deficit?

With the federal debt reached the historical records of many politicians economists, investors and the Americans about the financial health of the country are involved. It is obvious that the Government of the United States it difficult has many obligations which makes to control expenditure. Control an increase or a reduction in the benefits are two ways to reduce costs, but none is popular and can be difficult to implement. We can however say that the deficit is debt significantly as a measure of the total financial health as federal. DefinitionA deficit is the amount of money that spends more, a person or organization which he wins or supported. If a company wins $500 million a year, but spent $1 billion, it has a deficit of $500 million. If a father gives his son a $10 a compensation of the week, but the son has spent $15, there is a deficit of $5. However, a record more often if you mean the folks over at "Deficit talk" the federal budget deficit or the amount of money of the Government spends most of his vs 2010 DebtAs revenue.Deficit had the United States, from $ trillion debt. This is the total amount of money that the Government to its creditors must. Therefore, even if it is an additional managed a year – a period of 12 months he not spend more than it - this should be a huge difference for the total amount of debt. Deficits, of course, adding to the problem, but eliminating the Federal deficit will not necessarily fix the biggest problem - the national debt, according to the Federal Reserve Bank of St. Louis.Deficit CausesThe programs - Medicare, Medicaid and social security are major causes of the deficit. Considering the rising cost of health Reversorgung in GrößerÜberalterung of population, these programs continue to rapidly grow in size exceeds sales. However, politically it can reduce the expenses for these programs, that is why little has been done in the past, have people despite the impending problems.Possible SolutionsMany Obprécédent very difficult, proposed solutions for the budget deficit and public debt. Some have proposed a tax on value added, also known as a tax on consumption, similar to those in Europe and the United Kingdom but this repeated was rejected. The former President of reserve Federal Paul Volcker has proposed raising the retirement age would be a simple fix for social security, because the effects are not immediately feel. Emphasis on the preventive costs reduce universal health care medicine is also on the table for some time, but it is difficult to translate into reality.Necessary, ActionThere is a virtually unanimous consensus, deficit and the already alarming national debt should be solved. According to the Government Accountability Office selected us for expenditure not "affect everyone in the nation." In his testimony before Congress, the Congressional Budget Office Director Peter Orszag supports this view, indicating that "under any plausible scenario, the federal budget on an unsustainable path is that the federal debt too much faster than the economy on long to increase point of view." Therefore, while the decisions will be difficult to grow the deficit and the debt still without restrictions.