This blog is for discussing issues in our complex global economy.
‘Earthshaking’ ways to fix U.S. debt
The title to this article is a bit misleading. I don’t think that raising taxes, or cutting spending are earth-shattering. Everyone knows what is coming. The cuts are already coming..look at the schools, look at the public service area. What is the next logical thing? Taxes will have to go up, and our spending will have to stop. We can’t spend our way out of this mess, and continue to print money. I am surprised no one is talking more about Inflation…
I find this article pretty disturbing but it is reality. They can’t raise taxes at this point without cutting spending… People are in dire straits right now and raising taxes so that it can be spent as carelessly as it has been will not go over well with people. We need to streamline what we can afford to spend money on. I do not lend money or help people out with money if I, myself, do not have enough money to make ends meet. This is what has been happening. If a friend borrows and borrows from me and then I find that he has bought a brand new flatscreen TV, I get angry as to what he spent the money on and stop giving him money until he gets his spending under control. The American people do not have the money to see it being thrown away via bad decisions funded with raised tax money. We are at a point where we have to start sacrificing things as a whole in order to get this stuff under control, but people can’t be united in a cause if the leadership is out of control.
Oh! I have an idea! Let’s get out of this war! That would halt our deficit from rising and we could spend all the money we have been spending on war on reducing our debt. But that isn’t likely. We had a pretty nice size debt and then Clinton came along and reduced it quite a bit. The Bush came in and all went down hill. Obama has his work cut out for him. I feel like very little will be resolved through congress because the congress men and women aren’t looking out for future generations. It seems as if they are just pushing the issue off to future generations to deal with. If this wasn’t the case, perhaps we’d already see our debt reducing. Tax hikes and spending cuts are going to piss people off but they would help. National debt is at $12 trillion; each American’s share is roughly $42k. I guess we’ll see.
It is said to constantly read about the US debt. I do not understand how our economy allowed for the debt to increase so much over time. It is unfortunate that the economy was not able to find a solution to the debt earlier in its growth. In the article it states, “Broadly speaking, Congress has three options: raise taxes, cut spending or do both. None will be pretty.”The last statement found in the above quote is how I would sum up this whole article. The fact is that our US economy has a growing debt crisis which makes it hard to find a solution without making it look ugly first.
I would bet that some of our governemnt spending has a lot to do with the self-interest of whoever is doing the actual spending. I feel that if we can put a halt to the frivilous spending and focus on putting the money towards things that benefits us all, then the actual dollar of our budget will decrease. If the government were to raise taxes, I would imagine uproar to the highest degree. People have already been complaining enough over our tax rates, so imagine if we had to take more out of our pockets.
Wow, what a predicament. I personally think the spending has to go. I think our federal government has grown too big (as well as the individual States) and there is too much wasted spending out there and not enough productivity. We need to cut subsidies, we need to legalize marijuana and tax the hell out of it, we need to get out of the Middle East and we need to create tax incentives for alternative energy. I feel that the federal government’s job is to make sure that its citizens are healthy, safe and have the highest level of productivity (which includes education). These are basic fundamentals for any society and all the rest of the spending is garabage.
Another issue with government spending is efficiency. If they looked at all the costs involved with each program they currently run and examined it for efficiency, I bet they could save 30% in each area.
It will be interesting to see what they choose to do but I do believe raising taxes would be counter-productive at this stage in our economy. I think it would do more damage than good. They should start with fixing spending.
Lastly, they need to look heavily at creating new industries for our nation such as alternative energy. We are at a flux as a nation with competition extremely stiff in this global economy and we need to be the leaders of the next era – we won’t be if we don’t get our priorities right. If the Fed can work out how to keep our businesses here instead of overseas and how to incentivize them into creative industries, the income alone from that may help a large portion of the debt in the long run.
Honestly, the government just needs to stop spending unless it’s going to somehow help us all. All their spending is doing is getting us more and more into debt causing the unemployment rate to keep going up. Raising our taxes on EVERYTHING isn’t going to fix this any better. Every one of us is hurting for money including myself and I am just thankful I do have a job right now.
The sad truth is that for how much we always hear about the debt we as a whole are facing, but we in fact continue to make it worse and worse. Taxes on everything are making it harder and harder for people to obtain what they need and with the government spending money left and right the problem is only getting deeper. The only thing that can come out of this is just massive cuts all over, and if we just open our eyes, you can see them appearing everywhere.
The title of this article can be somewhat misleading to the point of the paper. Debt is currently a huge problem in our country. The government has grown too big and that there is not enough conservation. The government is spending too much money and there is not a lot to come from it. The answer is not raising taxes on certain things, but what new things our government could tax that they are not doing at the moment.
This is very unfortunate. I’m sure everyone has been affected by the economic crisis in one way or another and to add more financial stress to the people who are struggling is just insane. Cutting spending is probably the preferred option, but I have seen what these cuts to do people who depend on government programs. In my job I work with people who depend on Medi-Cal, Medi-Care, and Social Security. The cuts so far have had detrimental affects on these people and some find it very hard to survive without the assistance of programs like the one I work for.
This was a great article but the tittle was off. More like common sense. I agree with just about everybody that left a comment. Cutting spending is what needs to be done first. I would start from the top and work my way down. Cut the president pay, then congress, then sidekicks and so forth. Pull out of the war! That we should never have been in. Find a way, to kept jobs here. Create jobs, what about green technology? What the hell ever happen to that? Throw a fund riser, get all the over priced pro athletes to donate or raise just their taxes, along with celebrities. Before you know it no more debt.
But the problem is, our government is in it for their self. I’m tried of our government just sticking it to the next generation. That shit needs to stop!!! Once people have money or power then they never want to give it up. They will do anything else but the right thing. Thing need to change!!! So what is next?
If the government wanted to stop spending and increasing the national debt, it should end the two wars in the Middle east. Like Christopher said, the government could use that money saved from the war and try to pay odd the huge country’s debt which is increasing every year. If congress wants to show improvement in reducing the amount of money the U.S. spends, their only way out would be to increase taxes. But increasing taxes will hurt everyone in the country and no one would agree to pay higher taxes.
Taxing needs to be a very last resort, which I know we are pretty much at right now. But before that happens all this spending needs to be cut drastically and we need to prioritize on where it should go.
I agree that the title of the article is misleading. If the government raises taxes now, who’s going to pay for them? Too many people are struggling in this economy and raising taxes will put additional burden on them. Cuts should start at the top. I think their is a lot of waste in government spending and the special interest groups. We could save a lot of money by pulling out of the wars. We need to focus on what’s happening in this country over what’s happening overseas. Spending less here is already being done by the general public because they need to eat and pay their mortgages. Raising taxes will only cause greater hardship.
This article allows me to see what the government and economists believe is the best way to approach the deficit. Since I don’t have the experience or knowhow to make such suggestions I can only express my opinion on the matter. I believe all the different possibilities to use in order to get the deficit in order should be used. No specific program should be targeted. Whether or not we like it, this needs to be solved. Cutting a little from everything, and taxing should be the fastest way to pay off debts without singling out a specific department. Action must take place now.
The decisions for budget reform should be made by someone who is detached from certain government offices. Its a tough job to sit back and make those decisions. Look at our schools, look at all the cutbacks they have had to endure. What about the state employees hours on work furloughs days. Is it only effecting the citizens? What about our elected officials have they felt any change or made any drastic decisions in their offices? Are they excluded from such cutbacks? It seems the people who need the services the most such as seniors in Medicare, children in schools, unhealthy people in the healthcare system suffer the most.
I agree with Lacey. Taxing should be a last resort. We nee to cut our spending first. We soend so much and its to a point where we don’t need to be spending. Raising taxes will just make people angry and decrease their personal bank accounts. Taxing will most likely need to happen at some point but we should try everything else we can before takng more money from hard-working and well-deserving people.
This is nothing new. I feel all we ever read about is raising taxes and trying to cut back on government spending. Is that really the only two options our government can come up with. I guess with our economy in such a state of debt what else could they propose, I mean hey the government officials are still able to go home at night and know they are cozzy with their pockets full. But that doesn’t change the fact that this crisis is going to hurt us, all of us that are responding to this article. The old folks in office, what do they care they will be done and gone soon. It is our generation that is going to be left cleaning up after the tax party. A harsh reality, sad knowing that we can’t do anything about it like we did back in the 1700’s with the Boston Tea Party. Now we as citizens just have to watch, wait, and pay.
It’s unbelievable how much debt our country is in! It’s also incredibly sad that there isn’t too much that can be done in order to reduce the debt, so lawmakers and congress have to simply find a way to stop the debt from increasing. I am not looking forward to any of the tax increases or more spending cuts which may end up effecting education even more.
It’s hard to believe that the ‘richest nation’ is in such encredible debt and its effecting everyone living in it.
Wow really they could only come up with three possible options to lower the debt…I think raising taxes would just be too intense for us right now…people are barely getting full time jobs how are they going to pay all their bills and some increased taxes on top of that. The best thing would be to cut spending drastically and figure out what programs to cut. Especially this war we need to end it..we are paying way too much and little to no benefit is coming from it. Keep thinking congress there has to be other things that can be done to lower debt than tax us more.
Desperate times call for desperate measures, and I believe we have reached a critical point in the economy, where we have to completely decrease the current deficit in the national budget. I think that the best way to do it is in fact to mainly cut spending, but also raise taxes by a small percentage. I think the US gov really needs to evaluate on what parts of the discretionary budget aren’t essential and which parts are. Although this situation will not be pretty, the rate of which the national debt is growing due to the high deficit is even less pretty.
It seems easy for many of us to say that the government needs to stop spending, I agree to some extent. We as a country doesn’t really need to be spending as much as we do but the fact is we need to spen in order to move forward. At least that is my outlook, as someone said, this article is a bit miss leading, there wasn’t anything in it that was “earth shattering” in the end I feel the most earth shattering thing is that people didn’t know that our debt is a huge problem. I agree with Matt in terms of “The answer is not raising taxes on certain things, but what new things our government could tax that they are not doing at the moment.”
I like that they are not trying to do everything at once and make one big attempt at pulling us out of this. Taking shorter strides at solving this crisis, in my opinion, will benefit us more than the former statement. People are not going to like either one of the solutions that they have come up with. That’s why I think they should do both. You may as well, right? It also has the best chance to succeed and help us in this economy.
It’s sad to constantly read over and over about the US in debt. I don’t understand how we allowed for our economy to undergo such a large amount of debt over time and how we allowed it to increase at such a high level over time. It’s sad that we didn’t notice this problem earlier so that we could have found a solution before the problem got worst. In the article it states, “Broadly speaking, Congress has three options: raise taxes, cut spending or do both. None will be pretty.” This last statement found in the quote is pretty much how I would sum up this whole article. The fact that our US economy has a growing debt crisis makes it that much harder to find a solution to get out of it.
There needs to be other options to getting out of our deficit. There is so much spending, and we either have to cut back on that or else raise taxes, which will be hard for all of us. I think that spending needs to be cut back, which will help us get out of debt eventually.
Increasing Tax, and cut back on spending, like the article has mentioned, both of them seems like will help U.S. debt level go down. I think that if we reduce the unemployment rate, it would help the debt go down, too because people need to spend more.
I think the title is not misleading at all, contrary to what a few previous posters have said. No matter what the government does, whether it be increase taxes or decrease spending, either choice will have a relatively huge impact on the people of our nation. In order to bring down our trillion dollar debt, something ‘earthshaking’ needs to be done. There is no other way to look at it; it’s as simple as that.
Personally I believe that we need to do both — increase taxes and decrease spending. I also think that we need to take another look at taxes. People and companies from the higher end of the wealth spectrum are simply moving their money and other assets out of the country to avoid taxes. Something needs to be done about that. Perhaps tax every dollar that is wired to another country?
As the article says, some sort of reform needs to happen if we are going to make a dent in the deficit in the coming years, whether it be tax, budget, or social security.
I completely agree with Daniel. Even though we may not want to admit it, but we must reduce spending and raise taxes for our country to bounce back to our normal state. Its going to be hard, but whenever there’s a conflict something bad must happen in order to see good. This is what is going to happen to this country. We all need to face the facts and continue to push through it all. Also, the more wealthy people, like the upper 1%, should be taxed differently. How can people not say thats not fair? They make so much money that they could be taxed differently than they rest of us that have to work our butts off to make living. Talk about not fair.
Unfortunately, taxes have to be increased to some extent for any reform to happen. Also, something needs to be done with government spending. Just like Americans have had to cut back in their spending, the government needs to stop spending money and wait for the economy to stabilizes.
Is taxes and spending cuts really all we pay politicians to do cause it sure seems that way. The country needs to be held to the same standards as any human wood. A healthy approach would be to rebuild the budget to a point where we have sustainability. And then privatizing some markets so as to take financial stress of government. Then cut down on government spending and salaries, cause if the american people are going to be hit then so will our politicians
talking about what to do about a nation’s debt will not get anything done. This country seems to like to talk a lot instead of doing. It is also comical (sarcasticaly) to me that people worry about money like this. If you do not have the money do not spend it, it is simple. If the leaders of this counrty could put away competive team pride ( repulicans vs. democrates) and just do what is right in the situation, I do not believe the country would be in this mess to begin with.
Can’t we figure out a way to rebuild the economy and budget deficit in a sustainable way other than cutting necessary budgets suchs as schools, health care etc, and raising taxes? But since we are unable to figure that out we need to halt on our government spending until the economy restablizes, people will begin to spend their money, Americans cannot live like this forever, we are consumers!
I know that to fix the major financial problems facing the government there will have to be tax increases and budget cuts. So reading the main ideas of the body of the article did not seem all that earth-shaking (except of course for the huge figures that represented the increases and cuts). But I really liked the conclusion. The US is definitely headed in the wrong direction financially. How could it ever be good for a country to have a debt totaling 75% of its GDP? Changing taxation and the budget will not help at all in the long run. We need to reform money-draining programs like Social Security and Medicare before it’s too late. These types of programs are the ones that are causing the most trouble and will continue to cause trouble in the future.
This is just another idea of how to do a quick fix to the economy’s problems. Give it time, things are beggining to turn themselves around. The economy will have a natural fix if people just give it a chance to. Plans like these have a tendacy to derail the progress that our markets have been making.
I find the title of this article to be misleading. Raising taxes, or cutting spending are earth-shattering.Taxing should be a last resort. We nee to cut the amount of spending first.We spend too much money. Raising taxes will just make people angry and will lower the amount of money that is being put into their banking accounts.
The title and beginning of this article confused me a bit. Debt is one of the main problems facing the United States today. The government has expanded too much to implement any idea of conservation. They are spending far too much money without seeing any impressive results. The clear solution to this problem is for the government to stop raising taxes on current items and instead tax new items
The government has to spend money on things which will actually benefit the economy. We must cut the amount of spending rather than relying on taxation from the beginning. Increase in tax will do no good to the people or the cash flows to the banking system.
everyone knows that this was bound to happen. we cannot just raise out deficit to over 8 trillion dollars and not think that there would be any consequences as a result. we are coming to the point in which we now have to make big decisions that will basically keep the government from going bankrupt. and cutting spending or raising taxes are the only ways in which it can be done.
Well it wouldn’t make sense to raise taxes because as a whole we are struggling to keep our homes, so making us pay more would only cause more problems. Cutting spending would be ideal because our country seems to spend way too much money in areas that are inefficient to our needs. A break down of our priorities would be easily displayed if we were to graph all our spending so we could see what we pay the most for. I think we need to reevaluate what is important to spend the money on; money put into areas that will help improve the debt.
The one line that stuck out to me was: that it is not going to be pretty. Theres no pretty way out of a deficit and it seems like the deficit is becoming a bigger and bigger hole. I understand and respect the idea that there is no possible way to end the debt, we have to slow it down and keep it subdued as much as possible. No one likes high taxes and no one like to have less government spending, thats why were in this situation in the first place. Debt is bad, but it seems that we decided that high taxes and cutting spending was a worse decision.
The reality of our current economic situation is not going to be a good one. Not matter which direction is taken to fix our current economic burden, people are going feel the negative effects either through higher taxes or cut spending. High taxes will take away from personal income and cutting spending can take education and medicare from so many people in this country. Although both of these are going to have to happen to us, we should try to figure out how exactly we can find a solution to our problem.
Taxes are always an issue in the public sector. Raising taxes i believe is not the right solution. The government is basically asking its people to pay more when money circulation is low. How would anyone feel if they had to pay more when they have less than normal? angry. Raising taxes does to solve the crisis
i feel that raising taxes is sometimes necessary to get what you want. If you want government run postal service you pay for it in taxes its simple i don’t mind having to increase taxes slightly i just don’t see how cutting spending is going to help if the government cuts spending doesn’t that mean jobs are going to be sacrificed. i don’t know how to get our country out of this financial rut, but i have faith in my government that they can help us out and stimulate this economy. its estimated that if the white houses budget proposal is passed the total deficit will drop to 4.3% of GDP in 2015 i just really hope congress passes it because without it the deficit will be 6% of GDP.
The U.S. debt is a huge problem for this economy. The reason is simply because we spend so much money. We need to spend money on important things, a lot of our money is being spent on a war. However, I do not agree that raising taxes is going to help. Raising taxes is only going to frustrate peoplewith the government even more.
By raising taxes the Government is not helping the deficit until the spending ceases. The US will not be able to spend its way out of this debt. We pretty much are owned by China, and if we keep raising our taxes people will lose jobs beccause employers will not be able to pay.
The only thing that raising taxes is going to do is piss off the nation. People are struggling financially already, imagine if they will be taxed more. Cutting the spending seems to be the ticket to success. Instead of adding to the current deficit, it would make sense to stop spending, but I’m sure that it is not that simple.
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