When expenses exceed the earnings, debt occurs. United States National Debt has been rising over the span of the last few years. Basically, the Federal Govt has been spending more money than it has been earned and this is leading to fiscal debt, which has risen to a whopping amount of $14.3 trillion. This is a huge figure by any parameters. This debt is as a matter of fact encompasses payments outstanding to people and Government outside the United States of America. As per S&P credit rating agency, the credit standing of American Government is not good and it is having a negative bearing on the stock market. The national debt is an outcome of overspending by the Government. To correct this balance government should take steps to minimize wasteful expenses. Leaders are thinking of overhauling the entire system. Items such as individual taxes, corporate taxes, Medicare, social security all are being reorganized. Handling such a huge debt is not an easy task, but with steps in the right direction American government can devise means to minimize it drastically.

In case you see back in times, the biggest spike in a national debt of the United States is during times of war - Civil War, American Revolutionary War, World War 2, and World War 1. This still makes some sense. But now with so much advancement in technology taking place, there is no need for debt to touch such spiraling heights. The debt has risen to such an amount that it is crisis situation for American Government. And if America is in problem it will have an influence on economies of other countries as well.

As per various government agencies (such as the Government Accountability Office, Office of Management and Budget and Congressional Budget Office, and) economists who analyze debt and budget data, this huge debt is driving the nation to a serious long-term fiscal crisis. Immediate action is needed to avert any kind of grave implications.

As per these agencies Government should take immediate steps so that inflation is brought under control. Entitlement programs such as Medicare and Medicaid should be revised in lieu of growing financial deficit. As per the facts which are put forth by the GAO (Government Accountability Office), the debt to Gross National Product ratio will become double by 2040. This figure is expected to again become double by 2060, thus reaching the mark of 600 percent by 2080. Some economist therefore suggests that the government of the United States and its citizens should choose between 2 things bankruptcy and raising taxes on one side and cutting down the hugely rising payment obligations arising out of entitlement programs on the other side.