De La Torre 1 Alejandra De La Torre John Kubler English 114A 12 November 2013 Argument Proposal and Annotated Bibliography: Government

Debt Crisis Our governments economy is going through the worst debt crisis. It is in the worst state it has ever been. Our national debt exceeds $10 trillion. Ever since the Bush administration, our country's economy has been in a crisis. Our government has been borrowing money from other countries to pay for the money Uncle Sam already owes. In other words, our government is using credit to pay for credit. They are spending more than what we actually have causing serious deficit problems in our economy. Therefore, more borrowing is exactly what the Obama administration plans to do. For example, hundreds of billions will be spent to bail out the banks and other financial institutions, $275 billion for homeowners and mortgage lenders; and a giant $787 billion stimulus package will be used to jump-start an economy spiraling downward. Just like the Bush administration before it, Obama and his team are going to borrow big. My project is as follows: I would like to look at the final years of the Clinton administration until now during the Obama administration to figure out the causes that led to the National debt crisis growing instead of diminishing. Then I would focus on the possible solutions that are believed to end this debt crisis and better the economy. The most significant causes that began the National Debt Crisis started with making bad decisions during the Bush Administration, yet it is increasing during the Obama administration. However, some of the solutions are having faith in capitalism, raising taxes on the rich and cutting unnecessary social services like Welfare. In doing so, I hope to prove that there is still hope to save our nations economy from going into a depression.

De La Torre 2 Sources Sawyer, Forrest. "Ten Trillion and Counting." PBS. PBS, n.d. Web. 11 Nov. 2013. This documentary focused on the causes that actually began the National Debt Crisis. It explains that even before the financial crisis hit, America was already deeply in debt and borrowing money. The government has been borrowing money from other countries to pay for the money they already own, which just keeps increasing the debt. I can use this perspective to show the causes of the national debt and what actually led to it. It also shows how the debt keeps increasing through the Obama administration. It states that money should not be borrowed to fund programs is a dangerous gamble. Grant, A.J. "Predatory Lending and the Devouring of the American Dream." By Constance M. Ruzich. Print. This article explains how the American Dream is to come to this country and own a house. However, there is such thing as predatory lending which are lenders have fine print that makes them think they would be able to only pay the minimum, but for only certain time. Predatory lending gives homeowners a sense of fraud that they will be able to pay and own that house, but in reality they wouldnt be able to keep up with the payments. This shaped the mortgage crisis. I can use this perspective to show a cause that contributes to the debt crisis. I can get a quote explaining that mortgage crisis is the number one threat to the U.S. economy. Montgomery, Lori. "Running in the red: How the U.S., on the road to surplus, detoured to massive debt." Washington Post. The Washington Post, 5 Aug. 2011. Web. 12 Nov. 2013. <http://www.washingtonpost.com/business/economy/running-in-the-red-how-the-us-onthe-road-to-surplus-detoured-to-massive-debt/2011/04/28/AFFU7rNF_story.html>. This article talks about how the National debt crisis occurred. It mentions that our country had plenty of surplus that could have been saved for social security or to pay the debt we already had.

De La Torre 3 That surplus detoured into debt because of many bad choices made by the Bush administration. He returned money to Americans because he believed it was their money. In reality the people are the government, so it could have been saved for emergencies. I can use this perspective to show that people knew Bush was making mistakes in returning money. He did not make the right decisions and he began to send our economy deeper into this recession. Sherter, Alain . "Why Raising Taxes on the Rich Is Good Economics." CBSNews. CBS Interactive, n.d. Web. 12 Nov. 2013. <http://www.cbsnews.com/8301-505123_16243555361/why-raising-taxes-on-the-rich-is-good-economics/>. This article explains why taxing the rich is good for the economy. It gives facts about how raising the taxes can actually help many people like the less fortunate, but hurt small businesses. This article mentions who exactly it affects to raise higher taxes. For example the people with high incomes like the one percent and small business owners. I can use this perspective to prove that higher taxes for the rich people can help pay our economys deficit. They have plenty of surplus themselves to help their countrys economy get out of this recession. Rogan, Tom. "Welfare states are unfair states - The Week." The Week. N.p., 7 Jan. 2013. Web. 12 Nov. 2013. <http://theweek.com/article/index/238421/welfare-states-are-unfair-states>. This article suggests that there are many problems when it comes to welfare states. It is a system that allows for personal gain, but alleviates personal suffering for those who get welfare. It mentions how it actually doesnt help people, but hurt them more. I can use this perspective to prove that cutting this program can save the nation money. It is mentioned that welfare encourages economic inactivity because it gives people money when they are unemployed, making them not want to look for a job. The money for this program can be used for other programs that are more useful like Social Security.

De La Torre 4