Yep, it's time to talk about the national debt again. In March of this year, our debt officially hit $21 trillion. That's not a good thing.
Back in April, the president also hit a trillion dollar deficit. Meanwhile, he's focused on the trade deficit while not caring about the real deficit. This is bad for anyone who understands the bad effects debt can have on an economy.
Greece, for instance, had a large amount of debt just before they had a recession in the late 2000's. Investors didn't feel like they could get the debt paid back, so the investors left. As a result, they are currently one of the worst places in Europe from an economic standpoint.
The United States, while not as subject to this problem as Greece, could still fall victim to the same problem. Meaning we still need to think about the problem with having this much debt and figure out how to deal with the problem.
Here are the 3 options the United States has, assuming we don't want to become part of China (which isn't a choice), to deal with our debt. None of them are particularly good or workable in our political system. But we should still get them are out there.
#1-Raise Taxes
This one isn't unreasonable because it can't work, it's just unreasonable because the government won't let it happen. Americans love the vague concept of freedom, and with that low taxes. Even if the taxes go to an important cause, such as remaining a Sovern nation, they don't care.
Well, that may be a little inaccurate. After all, most Americans do favor a progressive tax on the rich as well believe the rich pay too little taxes. It's more Republicans in Congress have convinced people, or at least vote in a way where they act like they convinced people, that taxes are always bad and should never be raised.
This is a lesson that was learned the hard way by president George H.W. Bush in the 1990's. During the 1988 RNC, he said: "read my lips, no new taxes". However, he later found the national debt to be a giant issue and had to raise taxes. Mind you, due to the previous decade of Reaganomics this was basically putting a band-aid on one of 100 bullet wounds, but it was a good start.
That same decade, Bill Clinton also tried to do the same thing. His debt reduction act, which also included tax hikes for the nations richest, only passed because vice-president Gore broke the tie in the House.
#2-Cut Spending
This is not going to happen. Republicans will pretend they will do this, yet they never do. After they got the House with Boehner, the Senate with McConnell, and the White House with Trump, they still haven't cut spending.
Democrats are a little better then Republicans at this, considering how they don't want to just spend on the military, but they aren't much better.
Not only that, but we can't cut spending in every way needed. Medicare is still important, as well as roads and schools. And of course, police and a military.
#3-Just Print Money
This one is just obviously a bad idea. This will lead to inflation which will cause an economic crisis similar to what happened to Germany in the early 30's, and we all know how that ended out.
This will also be the solution the government will more than likely go with. That will be fun.
Back in April, the president also hit a trillion dollar deficit. Meanwhile, he's focused on the trade deficit while not caring about the real deficit. This is bad for anyone who understands the bad effects debt can have on an economy.
Greece, for instance, had a large amount of debt just before they had a recession in the late 2000's. Investors didn't feel like they could get the debt paid back, so the investors left. As a result, they are currently one of the worst places in Europe from an economic standpoint.
The United States, while not as subject to this problem as Greece, could still fall victim to the same problem. Meaning we still need to think about the problem with having this much debt and figure out how to deal with the problem.
Here are the 3 options the United States has, assuming we don't want to become part of China (which isn't a choice), to deal with our debt. None of them are particularly good or workable in our political system. But we should still get them are out there.
#1-Raise Taxes
This one isn't unreasonable because it can't work, it's just unreasonable because the government won't let it happen. Americans love the vague concept of freedom, and with that low taxes. Even if the taxes go to an important cause, such as remaining a Sovern nation, they don't care.
Well, that may be a little inaccurate. After all, most Americans do favor a progressive tax on the rich as well believe the rich pay too little taxes. It's more Republicans in Congress have convinced people, or at least vote in a way where they act like they convinced people, that taxes are always bad and should never be raised.
This is a lesson that was learned the hard way by president George H.W. Bush in the 1990's. During the 1988 RNC, he said: "read my lips, no new taxes". However, he later found the national debt to be a giant issue and had to raise taxes. Mind you, due to the previous decade of Reaganomics this was basically putting a band-aid on one of 100 bullet wounds, but it was a good start.
That same decade, Bill Clinton also tried to do the same thing. His debt reduction act, which also included tax hikes for the nations richest, only passed because vice-president Gore broke the tie in the House.
#2-Cut Spending
This is not going to happen. Republicans will pretend they will do this, yet they never do. After they got the House with Boehner, the Senate with McConnell, and the White House with Trump, they still haven't cut spending.
Democrats are a little better then Republicans at this, considering how they don't want to just spend on the military, but they aren't much better.
Not only that, but we can't cut spending in every way needed. Medicare is still important, as well as roads and schools. And of course, police and a military.
#3-Just Print Money
This one is just obviously a bad idea. This will lead to inflation which will cause an economic crisis similar to what happened to Germany in the early 30's, and we all know how that ended out.
This will also be the solution the government will more than likely go with. That will be fun.
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