Beverly SamplesMacroeconomics 22 March 2013Professor LeggReducing the National DeficitThe future existence and well being of the United State’s relies on the reduction of the National debt, and the control of any future spending. The national debt has risen to an all time high, and has prevented any improvement for the Nation’s current economic state. The United States is currently supported by an extravagant amount of deficit spending. Deficit spending can be defined as any spending that exceeds the amount of money that is received, thus increasing one’s debt. Today, there are over twenty-three million unemployed Americans, along with the many underemployed and underpaid Americas. The National debt has risen to approximately sixteen trillion dollars, without showing any sign of immediate reduction. For the past four years,Politicians have decided to explore the effects of deficit spending to stimulate and revitalize the economy. Deficit spending not only impacts the country as a whole through inflation and reduced standards of living, but also decreases the average citizens chances to find job advancement, or comfortably support their families. It is easy to point out the issues but the real challenge is determining the best solution. The United State’s deficit should be reduced by cutting wasteful spending, reducing foreign aid, and ending fraudulent spending within entitlement programs. Cutting wasteful spending by Washington, is the most obvious route to reducing the National debt. The wasteful spending is a result of Congress’s carelessness, and their distorted views of the average American’s needs. For the third year in a row Congress has failed to presenta national budget, and as a result Congress has continued their impulsive and lavish lifestyles. The lack of a budget has allowed Congress to charge up to one trillion dollars on credit cards thatis simply piled onto the National debt. To their credit, the U.S. Congress had planned to stimulatethe economy through additional spending. This spending was seen in the form of corporate buyouts, various stimulus plans, incentives, and grants. In theory this was a good idea, but in reality Congress's spending resulted in government salary increases. Washington’s sense of entitlement simply increased their detachment from the reality of middle and lower class citizens.Last analysis showed that Washington’s budget was in almost four trillion dollars of excess, which is clearly a substantial amount to be cut. Washington is so out of touch that three hundred thousand dollars was given to advertise Caviar by the USDA. Similarly, two million dollars was given to speciality cupcake shops instead of the improvement of nutritious school lunches. Theseexamples further prove how out of touch the National Government truly is, and how vast amounts of money are squandered without any obvious regards for its cause and effect. One of the many forms of wasteful spending, is seen through foreign aid. All through foreign aid is a noble cause, and is favored by most, it has shown to produce minor improvements. In 2011, the U.S. committed nearly fifty-seven billion dollars to new foreign aid after already contributing trillions of dollars in aid for years. These trillions of dollars given to undeveloped nations since the 1960’s has little to show for its long term contributions. All through foreign aid can help support world peace and national security, financial contribution is not the only way to establish stable relationships. The United States government needs to re evaluate its priorities, and realize the importance of domestic stability over foreign issues. Through the realization that “you can’t be everything to everyone”, Washington would be able tobetter serve the American people.The government’s frivolous spending is most apparent within one form of wasteful spending. The growing amount of Fraud in entitlement programs has proved to be one of the main contributors to the national debt. The Social Security Administration has spent one hundredand fifty billion dollars for the disabled alone. Disability insurance and Supplemental Security Insurance was analyzed by the GAO. The federal salary data revealed that fifteen hundred federal civilian employees are receiving funds improperly to over twenty million dollars per year.This example is only two percent of the fraud cases. In regards to Social Security three forms of fraud are described as false statements, concealing the truth, and mishandling payments. Similarly, different forms of healthcare fraud have shown to be one of the most significant contributors to fraudulent spending. In conclusion, the study showed that at a rate of approximately ten percent, fraudulent spending can cut the deficit by one-hundred billion dollars.All though this is only one of the many forms of wasteful spending, it serves as a good example of how much should be changed and re-evaluated. The United States National debt is a result of years of carelessness and procrastination, but with the guidance of the Government the American economy can be restored. The fault lies within the governments hands, and shows a slow progression due to the nations failure to priorities and their distance from reality. Even though, by reducing wasteful spending, the revaluation of financial foreign aid, and the analyzation of fraudulent spending within entitlement programs the national debt could be easily managed. Alexander Hamilton concluded his thoughts about national debt in a letter to Robert Morris in the 1800s. Hamilton said, “A national debt, if it is not excessive, will be to us a national blessing.” Hamilton’s thoughts towards national debt provides a clear summary to how there can be too much of a good thing. The U.S. Government can re-establish the United States through the reduction of wastefulspending through foreign aid and the investigation of fraudulent spending. Though this is no quick solution, the U.S. can have a positive, debt free future under the right leadership. Work