The main topic of this article is government debt and whether or not it is affecting the economy. Some say that they massive debt that our country hurts the competition and business in the private sector because people are more cautious with their money due to the uncertainty of the future. Others argue that if we were to cut the deficit spending that we are currently doing in order to decrease our debt, the economy would tank. This is an issue in which it really depends which side you are looking at it from. The people who want the spending to stop so we can eventually make it out of this massive debt we are in feel that not only their businesses, but the market in general would improve. However, the people on the other side think that this spending is the only thing keeping the economy alive.
Another interesting point this article is that countries with high national debt have much lower job growth. Meanwhile, countries such as Germany who has a low national debt also has high job growth. Maybe President Obama would like to look into this statistic if he is really serious about creating more jobs. However, even if Obama decided this was the ticket to creating more jobs, he would still have to work to lower the national debt, a lot, before he could potentially start to see some improvement in the job market. I believe the thing holding President Obama back is the risk that would come along with cutting the spending because if he cuts the spending and the economy does fall apart, then he has a broken economy and he still has national debt to pay off. But if he continues to do what he is doing now, he is banking on he the hope that it will at least stay the same.
Source: http://www.npr.org/2011/07/18/138474504/does-government-debt-really-weaken-the-economy
This article was written by Jim Zarroli who works for NPR so I would say that this information is credible.
Should Obama cut deficit spending in order to decrease the national debt in order to eventually create more jobs?
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