Large debts and deficits cause an uncertainty in the market, which leads to more layoffs and a drastic increase in the unemployment rate. The United States’ primary focus is to become debt free and decrease the deficit. The faster the debt and deficit is decreasing, the higher the unemployment rate becomes simply because the government is focusing on paying debt off instead of assisting with the unemployment rate. If the country is trying extremely hard to pay off the national debt that has ...view middle of the document...
” The point of the increased spending was to ensure that the recession would not cause more people to be unemployed, family incomes decrease, and to help stimulate the economy.
The national debt can also have an effect on University of Phoenix students. As previously stated, if the primary goal of the United States is to pay off the national debt, which will increase the deficit, then there will be less money to spend in the educational field (Boyes & Melvin, 2012). Many students that attend University of Phoenix rely heavily on financial aid (such as Pell Grants) to assist with the cost of their educational expenses. When the government spends access money elsewhere, the students are not able to pay for college and are unable to continue their students. However, a surplus could allow the government to put more money towards education, which could assist many students with their financial needs while they are attending University of Phoenix.
Boyes, W., & Melvin, M. (2012). Macroeconomics . Clifton Park, Ohio: Cengage Learning.