President Obama and the Exploding National Debt

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U.S. National Debt Crisis: What’s to be Done?

Personal issues notwithstanding, Clinton balanced the budget for four consecutive years. Image courtesy of the White House

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.

Resources:

U.S. Government Spending. U.S. Defense Spending(2013). Accessed on January 26, 2013.

U.S. Government Spending. U.S. Government Spending History from 1900(2013). Accessed on January 26, 2013.

U.S. Department of Commerce – Bureau of Economic Analysis. National Economic Accounts. (2013). Accessed on January 26, 2013.

Tax Policy Center. Historical Federal Receipt and Outlay Summary(2013). Accessed on January 26, 2013.

Manuel, D. A History of Surpluses and Deficits in the United States(2013). Accessed on January 26, 2013.

Brainy Quote. National Debt Quotes (2012). Accessed on January 26, 2013.

Good Reads. Quotes About Decisions (2013). Accessed on January 26, 2013.

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