Grant Laster– Liberal
Imagine that an airplane, flying 35 thousand feet above sea level, suddenly runs out of fuel. As the plane plunges to its impending doom, a conservative might suggest dumping cargo from the plane to lighten the load. Most people would recognize that the failing engines, no matter the weight of the plane, would still cause a fiery crash. The sensible liberal would advocate refueling the plane so that it could reach its destination safely.
The United States has incurred (and is flying toward disaster) the largest national debt in written history, reaching a grand total of 16 trillion dollars. That amounts to each American citizen being $51 thousand in the red. Our country’s financial security is teetering on the edge of disaster, and it is obvious that any fiscal mistakes on the part of the government would have an extremely damaging effect.
Contrary to fiscal conservative beliefs, a reduction of taxes on the wealthy does nothing to decrease the deficit, nor does it spur economic activity. Because economic confidence has stagnated since the Republicans have gained control of the House of Representatives, the conservative belief that cutting taxes will have a trickle down effect is flawed.
Time and time again, America has tested the hypothesis that conservative, supply-side, trickle-down economics will benefit our country financially. We have tried this theory, and it has failed. The obvious conclusion that can be made from this experiment is that the conservative approach to deficit spending and fiscal policy has not, is not and will never work.
In the Clinton Era, a similar, sensible approach to deficit spending was taken, and Bill Clinton later left the office with a surplus of $236 billion. When the government switched to a more orthodox method under former-President George Bush Sr., taxes were decreased and the deficit fell to $4 trillion.
It may be the hard thing for some to do, giving up a fraction of their income for the common good, but the future of America requires selflessness.
The battery that runs America is dead, it simply needs to be charged by tax dollars. Cutting tax dollars and spending will only keep the battery dead.
Simply put, conservative pundits need to de-politicize the debt: the plan that will gain a senator more voters will not solve our nation’s financial failures. It may never be the popular thing to do, but sometimes the bandwagon leads us astray. Sometimes, we all need to take one for the team.
Jack Ayres– Moderate
I certainly acknowledge the necessity of deficit spending for the continual operation, functioning and responsibility of the government. The United States shouldn’t look to deficit spend just for the fun of it.
On one hand, programs like the New Deal, as well as modern day spending in education and military are, if done effectively, examples of “good deficit spending” because these are all necessary items.
On the other hand, throwing money at the wall in hopes of creating some jobs to help the economy without a real need for the work the jobs would provide is not a good idea. The most, and possibly the only effective way to utilize deficit spending, is to spend money through the private sector.
Due to the constant criticism of government efficiency, private companies should be encouraged to create a competitive market to guarantee efficiency. It is important to note a few facts about debt:
1. The majority of our debt is mainly owed to taxpayers who bought savings bonds, not China. Any foreign debt we may have is checked by money that other countries owe the United States.
2. A large debt doesn’t discourage investors. The United States is still the safest investment. Who are they going to invest in … Greece?
3. The United States is not like your average family in debt who owes a bank some money. The United States isn’t required to pay back our debt mainly because it is owed to us.
4. Nearly all of the “problems” that people commonly tack on to a high deficit such as a debt ceiling/borrowing limit or sequestration cuts are lies. Nothing requires us to have borrowing limits or automatic cuts. These are things Congress created to get a leg up on the opposing party. Plus, these are clearly not important as we always find ways around them.
While we shouldn’t go crazy with it, there really is no imminent danger in having a little deficit spending if it is necessary and done efficiently and effectively.
However, Republicans offer another idea to climb out of the hole. The solution is to stop digging and start building stair steps into an environment that allows the economy to thrive.
Politicians on both sides (yes, even Republicans) have contributed their fair share to creating this massive hole the American people now find themselves stuck in. This is an unfortunate reality of the American climate we find ourselves in.
Because of the government’s expansive size and society’s constantly growing dependency on federal investment, it’s really no wonder why we are looking up and realizing just how deep we have gotten.
Republicans recently, since gaining majority rule in the House of Representatives, have advocated cuts in the federal budget, especially in areas of “waste” and “social welfare programs.”
I am willing to acknowledge that federal spending is necessary in some sectors of the economy, simply because of the dependency we have created. I hate the dependency, and think that over time, it could be reduced. But what could be done today?
The most important action Congress could take is to prioritize spending in a budget. This is a simple, common sense approach that would increase the efficiency of federal investment. After there is a clear budget, cut wasteful spending. There is no way that all sectors of federal investment are as efficient as they could be. This would include military expenditures.
The left has proposed new taxes to generate federal revenue. However, why as a country we would take even more away from our citizens trying to recover, blows my mind. They claim they would only be increasing taxes on the wealthy. Although this seems like a nice idea, punishing success is never the answer.
Simplifying the tax code to a consumption-tax, is the second step Congress could take to address the ever-growing debt. By taxing based on consumption, it allows more money to be saved in the private sector and businesses, while at the same time generating more revenue for the government.
Currently, the tax code is complicated. But if simplified, the government would become more efficient in raising its revenue because everyone consumes something. A 19% tax would generate needed funds for the government to be sustained upon, while allowing the economy to strengthen.
The best solution to fix America’s debt problem is to prioritize spending, and address the overly complicated tax code. By taking both of these steps, a stairway to a brighter American economy can begin to undergo construction.
