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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
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to reform social security would be; Raise the normal retirement age from 65 to 68. Gradually
reduce scheduled benefits. Use an alternate measure of inflation for COLA. Reduce spousal
benefits from 50% to 33%. Increase years used to calculate benefits. Include all new state and
local workers to pay into social security. Just using these six simple reforms would save over
580 billion dollars. . (The committee for a responsible federal budget. pg. 3-4).
Another major area of spending is Healthcare. We are completely unable to support this
program and cuts and reforms must be made. First the Healthcare legislation must be repealed,
but the Medicare/Medicaid cuts should be kept. 2).Increase cost sharing for Medicare. 3). Raise
Medicare premiums to 35% of costs. 4). Increase the Medicare retirement age to 67. 5). Replace
traditional Medicare with premium support. 6).Block grant Medicaid and grow with inflation
plus population growth. These cuts would save $1,610,000,000.( pg. 3-4).
These cuts are just a few of the many necessary cuts that must be made, if we are to get
the Federal debt under control. This will not be an easy process and we must all make difficult
sacrifices if we want to leave a better America for our children. With the National debt at
$17,219,876,068,607.85 and rising daily, the time to take action is own, for our own sake, for
our children's sake, and for the sake of the world we must take action now.
The Moment Of Truth. National Commission on Fiscal Responsibility and Reform.
December 2010. print. 11-12
Stabilize the U.S Debt. The Committee For a Responsible Federal Budget ..
crfb.org/stabilizethedebt/ . Web 3-4
Hall, Ed U.S National Debt Clock. briling.com Web 1.