Budget deficit refers to government spending rather than individuals or businesses spending. In this case, the government’s expenses exceed the amount of revenue received. I think that we are going back to the budget deficit cycle because the budget deficit has kept increasing in the last two years rather than decrease. This is happening due to different reasons. For example, the War on Terror almost doubled the annual military spending, and this definitely affected the budget deficit. Another reason why the deficit increased is the mandatory spending. The mandatory spending has increased, which means benefit payouts for Social Security. Another reason is the economic stimulus package. Additionally, the recession reduced federal revenue and taxes which stimulated the growth of the deficit. Although the government has tried to recover, it is a slow process. As described above, we are going back to the budget deficit cycle due to a variety of things that affect our government expenses.
Q2) Although the war against IRAQ was over quick(?), there will be involved with the additional cost after the war including the reconstruction and humanitarian aids , or another war(Afghan) or fighting against ISIS. How does this military cost contribute to our rising budget deficit? (0.5 point)
This military cost contributes to the rising budget deficit because the government has to spend a lot of money for reconstruction, humanitarian aids, or other wars. Rather than saving money, the