National Debt Essay - 1004 Words

There are different ideas on how to deal with America’s national debt. An option that seems best for the country would be for the US government to do things such as reform the tax code, reducing other spending, slow the growth of entitlement spending, and help the economic growth. In order to be able to complete these things the government will have to create an all-inclusive plan to successfully reduce the debt. By looking into what has caused for such a profound debt we can find ways to pay off it off, and hopefully reduce it for future generations. Federal spending can be summed to three major categories: Discretionary spending, mandatory spending, and the interest on debt. Discretionary spending includes things like the military,†¦show more content†¦Globalization has really changed the algebra.† (Kent Smetters, Wharton University of Pennsylvania) Smetters brings up the point that globalization has impacted how taxation works, and has lead to taxes being higher. A correlation between high taxation and less efficient economy can be seen when presented the evidence. To solve the issue of the US national debt we have to look at all things that have lead up to such high numbers of debt, and one of those is our outdated tax codes. In order to take the first few steps to reducing debt we need to work on fixing our economy, including updating our tax codes so we don’t have such high tax rates, which in turn can help increase our economic growth (if done correctly). Multiple steps can be taken to improve our country’s economic growth, but the most effective one would be to make cuts to all of federal spending. If we reduce the amount that is sent to the federal costs then they will have to adjust how they divide their spending, which can lead to a reduction in any deficits. â€Å"The solution to these problems is to dow nsize every federal department by cutting the most harmful programs...Federal spending cuts would spur economic growth by shifting resources from lower-valued government activities to higher-valued private ones.† (Chris Edwards) Edwards mentions here how if we called for cuts that the government would shift in a way that they’llShow MoreRelatedEssay on National Debt1368 Words   |  6 PagesNational Debt: It is Not Just a Number, It is Our Future Miranda Rosenbaum Macroeconomics Professor C. Simkonis April 29, 2008 Rosenbaum 1 As a nation, America has accumulated a tremendous amount of debt which will affect not only the lives of the current citizens, but generations thereafter. 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