Even though there are other areas of concern such as military, education, and social security that the government needs to allocate spend to, reducing the national debt is what our government officials should be their primary expenditure considering how large our debt has gotten to. If the Government does not find a way to reduce its expenditur... ... middle of paper ... ...security. If the government primarily allocated spend to these areas or primarily on the people, then our economy would suffer. In other words, if the U.S. government ignored its debt and only concentrated on its people, the debt would continue to rise and would take longer to pay off. The government needs to start allocating more money to debt and get it paid off so that officials could then make its main focus the citizens.
The government has three options to stabilize the economy, them being, using government spending, taxation, and using transfer payments. With too much money in the economic circle, the government will decrease its purchases to prevent spending from consumers and firms. Another way to prevent the flow of money in the circular flow would be to increase the tax rate, this options takes more money from the consumers and firms. The final choice to prevent the inflationary gap would be to decrease transfer payments, this way the government is once again like the government spending;
In order to control the money supply the government cut borrowing and spending, which in theory would reduce the money supply, inflation and unemployment but interest rates had to rise to stop consumer borrowing, which in turn increased the exchange rate. High interest rates curbed consumer borrowing, which reduces demand for products, along with a high exchange rate ruining demand for exports ... ... middle of paper ... ...ector borrowing is not the enemy of unemployment. If the government borrows too much then there will have to be increases in taxes, mainly corporation tax and this will also contribute to some unemployment, but the public sector does help employment in some ways. Education and training (funded by the government) provides a skilled, desirable workforce, which will encourage British firms to employ British workers instead of looking for other skilled workers in an increasingly globalized world. The National Health Service also reduces the amount of residual unemployed and therefore contributes to keeping employment levels high.
They need to lower the rate for companies that choose to stay here and hire here in America. Conclusion The outsourcing of U.S. jobs can be solved. The President and Legislators of this country will need to work together as a team to stop companies from sending jobs to foreign countries. They need to promote jobs and repair the terrible damage the recession has done to make America more competitive with other countries. The unemployment rate has decreased, but we have a long way to go if the Government does not prohibit U.S. companies from outsourcing jobs to foreign countries.
To reinsure safety to its citizens is the primary goal for the government right now - safety from foreign attacks, but also economic safety. In order to do so, I am offering an idea so profound, so absurd, that many of you will not be able handle it. What the government should do right now is cut taxes. Tremendously. But wait a minute.
Our major programs are the Medicaid and Social Security programs. By making cut to the programs it can cause a imbalance of fairness. The people who need the government support are having it taken away when the high income class is still remaining the same with low taxation. It is only fair and logical to share the burden and make both cuts and raise taxation. “Interestingly, raising taxes to pay for current spending has proved more effective at restraining spending than allowing the government to finance its outlays with deficits”(Gale 2).
These states are examples of what can happen when welfare is reformed. In the political arena, there are a select few topics that come up in every debate, and press meeting, one of those topics is welfare. The middle class could use a tax break, and they should get it, after all they are the ones working to keep our economy strong. When they can’t get help, because someone else is getting paid to do nothing, it takes away a little more hope or faith that they had in the American government. We need to cut welfare spending, and use the money we save to get the former welfare recipients on their feet, and contributing to the economy, instead of taking away from it.
In order to stimulate economic growth in the United States, taxes on capital gains should be eliminated. Members of Congress once considered a reduction in the capital gains tax rate from 28% to 19.8%. Combined with indexation, which is , reducing the capital gains tax by any amount would be a vital pro-growth step taken by Congress. However, given the fickle and high risk nature of investments and entrepreneurships, and the importance of maintaining a competitive economy in a global environment, capital gains should be exempt from taxation altogether. A zero percent capital gains tax would attract entrepreneurial risk taking, which is very important to economic growth.
Some strategies that the government may use are spending less, collecting more taxes, and balancing trade (“Atkins”). The federal deficit has become a big issue and Americans must try everything to reduce the debt. We must come up with a plan that will strive for a balanced budget. One way the government can reduce the deficit is by spending less. Americans are known for spending.
The FairTax rate is inclusive so it reflects the rate of 23%. The FairTax is a consumption tax, that will replace the income tax and eliminate the need for the Internal Revenue Service or (IRS) for short. The FairTax would eliminate self-employment taxes, death taxes, capital-gains taxes, corporate taxes and a lot of others and replace complicated regulations with a simple easy to collect sales tax. The tax would cause GDP to grow because without an income tax people will have more money to spend and the increased spending would fuel economic growth. The FairTax bill also has a provision that will issue a monthly “prebate” to nullify the tax on basic necessities like food.