As a nation and as individuals, Americans are carrying massive and increasing debt. While there are innumerable aspects to a topic such as this one, the pages in the links below cover some basics regarding government deficits and debt. In the coming weeks look for additional information on personal debt.

"At its most simple, a budget represents a government's or individual's determination regarding how to allot and distribute resources. In the context of the federal government, the budget is our main tool for allocating resources and setting national priorities and values. When we can't do everything, making the budget is how we decide what to do first. If the budget making process is taken seriously, it will make a lot of people unhappy the last thing a politician wants to do." (1).

In considering the allocation of resources by the federal government, consider the following information from the 2005 Budget (all amounts in millions of dollars):

Total Budget: $2,472,205
Social Security: $523,305 - 21% of total budget
Defense: $495,335 - 20%
Interest on Treasury Debt (gross): $352,345 - 14%
Medicare:$298,638 12.1%
Medicaid grants:$181,720 - 7.3%
Veterans' benefits:$70,151 - 2.8%
Elementary/Secondary/Voc. Education: $38,271 - 1.5%
Higher Education: $31,442 - 1.3%
NASA, space flight, supporting activities: $14,778 - 0.6%
Energy Conservation:$883 - 0.03%

www.whitehouse.gov/omb/budget/fy2007/fct.html

Please review the topics contained in the links below and share your thoughts and ideas in the Deficits and Debt Forum.

Background
Spending Programs
Good/Bad Debt
Impact on Young Adults
Policy Solutions