preview

The Problem with America´s Federal Debt

Satisfactory Essays
The Problem today is that the United States of America is on a very unstable financial path. The Federal debt is unsustainable. The government is spending more money than revenues that are being brought in, and they are borrowing money from feign countries to make up for the difference. More than 50% of the US debt is owed to foreign countries, the most is owed to China. If the creditors lose faith that the US can repay its debts, this may send us into a debt crisis. The budget has not been balanced since 2001. Since 2001 the GDP (Gross domestic product) rose from 33% to 62%. As the baby boomer generation reaches retirement age the situation will get much worse. The coast of health care will raise with less people paying into it. The Federal debt is driving up interest rate for all borrowing, making it even harder for people with business and the economy. (The Moment of Truth. pg. 11-12). "The Outstanding Public Debt as of 26 Nov 2013 at 04:56:35 PM GMT is: $17,219,876,068,607.85 .The estimated population of the United States is 317,122,530 so each citizen's share of this debt is $54,300.38. The National Debt has continued to increase an average of $2.73 billion per day since September 30, 2012!" (U.S. National debt clock. Web 1). There is no doubt that the Unites State Of America has a hug debt, and there must be something done about it. $54,300.38 and rising is far more than I want to pay, and I am do not want to have that number continue to rise. The United States government must do something to the out of control spending and the ever increasing debt under control, not only for our own sake, but also for the sake of our children, and our children's children. The Solution: I do not believe that raising taxes and yet keeping the same level of spending is the answer to our debt problem. I believe that we must cut all unnecessary , and unaffordable government spending. I would let the Bush tax cut expire, except for the AMT patches and Estate tax which would remain at 2009 levels. This would be the only rise in taxes that I would allow. One of the major areas of spending is Social security with over 22% of the
Get Access