The American economy suffers from a general budget deficit, mainly due to the high public expenditures, especially the military, as the United States of America occupies the first place in the world in the proportion of military spending, and the budget deficit is mainly financed through the sale of government securities, which led to an increase in the volume of public debt In the United States of America, which is a dangerous indicator, especially after interest payments on public debt exceeded the barrier of $ 500 billion for the year 2018, which pushes them to borrow again to finance these benefits, this cumulative and continuous increase in the size of public debt works to influence the economic variables Monetary and financial. The research aims to analyze the development of internal public debt in the United States of America and its most important causes, in addition to clarifying the mechanisms and methods used to alleviate the severity of the internal public debt without compromising the ability of the economy or the ability to repay previous debts to maintain investor confidence in the strength of the American economy. The research reached several results, the most prominent of which is that the large increase in the volume of the internal public debt and the consequent increase in the money supply did not negatively affect the monetary side of the economy as inflation rates did not reach high levels and international reserves increased, accompanied by a decrease in interest rates. While the research presented several recommendations, including the need to achieve financial discipline and market access to borrow at the lowest possible costs by issuing debt regularly, in addition to avoiding resorting to any special measures to increase the volume of public debt and adhere to the debt ceiling approved by the US Congress.
The Sustainability of Fiscal Policy in the United States