The national debt of the USA has already exceeded $19 trillion. It has steadily grown since the end of the World War II, and it is expected that it will reach $20,600,000 billion by 2019 (Patton par. 4). Economists agree that the country is yet to cross the point of no return, and the American treasury bonds can be sold with low-interest rates (Davidson par. 3). At the same time, it has also been acknowledged that it is time to undertake particular steps to address the national debt crisis.
It is possible to consider three solutions that can help the country solve the problem. First of all, it is crucial to decrease the national expenditure. These steps will include the reduction of investment into such spheres as the defense. The country spends too much on weapons and investing in various military campaigns. Another solution is to raise taxes. Clearly, this will lead to a certain reduction in people’s spending and the growth of the unemployment rate.
However, if the two steps are proportionate, the country’s GDP can even grow (Amadeo par. 16). Thus, it is necessary to consider reduction of expenditure and the increase in taxes to ensure the country’s economic growth and reduction of the national debt.
The third solution is concerned with the financial sector. Moraly stresses that it is crucial to strictly “regulate the unbalances between the financial sector and other economic sectors” (99). It is clear that the financial system is associated with a lot of controversy and corruption. Some institutions receive loans that result in losses for the country’s Treasury. The 2008 financial crisis showed the vulnerabilities and wrongs of the system. Therefore, it is essential to make sure that all procedures are transparent and appropriate. These three solutions will lead to the US economic growth and a significant reduction of the national debt.
It is necessary to note that some steps have been undertaken and debated. However, the solution mentioned above is the best as it can solve the issue within a comparatively short period of time and at a comparatively low cost. The major benefit of this approach is its comprehensiveness. In many cases, economists and politicians focus on one of these measures, which is erroneous as they will have short-lived outcomes. Whereas, the three steps mentioned comprise a complex approach that can solve the national debt problem.
Nonetheless, these solutions will require the political will to be implemented. The major reason why the steps mentioned above have not been undertaken is American politicians’ desire to win votes and prolong their political lives. None of the politicians is ready to sacrifice the political image. Another reason is the difference in the perspectives of Republicans and Democrats (Amadeo par. 8). Democrats focus on raising taxes while democrats are more concentrated on decreasing taxes to stimulate the economic growth (Amadeo par. 8).
At the same time, it is possible to overcome these obstacles. It is essential to start a wide discussion in the American society. The media will play a central role in this process. Americans should understand that there is no other way out as the problem will soon become a disaster if the three-fold solution is not accepted.
In conclusion, it is possible to note that the national debt crisis is becoming more serious, and it is time to address it. A complex approach is needed. This approach includes raising taxes, the reduction of expenditure, and the strict regulation of the financial sector. It is vital to make Americans accept it to make the solution effective. The consent can be received through a comprehensive debate and transparent policies.
Works Cited
Amadeo, Kimberly. “US Debt Crisis: Summary, Timeline and Solutions.” About News. 2016. Web.
Davidson, Jacob. “How Much Does America’s Huge National Debt Actually Matter?” Time. 2016. Web.
Moraly, A. International Robbery of US Wealth, Bloomington: Xlibris Corporation, 2011. Print.
Patton, Mike. “National Debt Tops $18 Trillion: Guess How Much You Owe.” Forbes. 2015. Web.