U.S. National Debt Crisis: What’s to be Done?
Simply put — nobody knows for sure. Some have argued that growing the economy is the answer, in that tax revenue increases from a booming economy can help resolve the problem. There is a case to be made for that, as tax revenues nearly doubled between 1992 and 2000 and the budget was balanced four times, all accomplished during a period of time in which the U.S. economy was booming.
Since then, the economy has suffered two recessions and two wars, and the government has seen near flat growth in terms of tax revenues as a result. Others have demanded that the U.S. reign in spending, which is the path Europe has taken.
That may also be effective in helping to eliminate budget deficits and eventually shrink the national debt. However, as has been seen in Europe, it is likely to sink the economy in the short term. Always concerned about their own political skins, politicians rarely think beyond the next election.
As Jarod Kintz said in This Book Title is Invisible, “When faced with two equally tough choices, most people choose the third choice: to not choose. ” With respect to solving our chronic budgetary problems, such has been the way for the better part of a century.
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