Strategies For Relieving The National Debt

provide more money to the government with the increased tax revenue from all of the new

According to Colander, "The reason two countries trade is that trade can make both countries better off" (2004, p. 416). In economics, the theory of comparative advantage clarifies why it can be advantageous for two countries to trade, even though one of them may be able to produce every kind of item more cheaply than the other. What matters is not the absolute cost of production, but instead, the ratio between how easily the two countries can produce different kinds of goods. The basic idea of the principle of comparative advantage is that as long as the relative opportunity costs of producing goods differ among countries, then there are potential gains from trade.

Overspending is a pertinent problem facing the lawmakers in Congress. In 2012 discretionary spending reached $1.3 trillion and mandatory spending $2 trillion, while only bringing in $2.5 trillion in revenue. Since the turn of the century back in 2000, non-mandatory spending by the government has topped out a whopping $16.1 trillion just in the past 13 years (Boccia, Frasser & Goff 2013). This persistent overspending on programs and services that are not necessary to the functionality of the country is what is causing the deficit to rise year after year. To remedy this issue the government must either increase the revenue it brings in through taxes and trade or reduce the amount of money it spend or perhaps even both. In 2012 thirty-one cents of every dollar that Washington spent was borrowed (Boccia, Frasser & Goff 2013). Most of which went to large programs such as Social Security and Medicare and if these large, growing programs, or just the budget in general, do not undergo financial reform it could spell disaster for the economy and fiscal state of the nation.

To reduce our national debt, which is 3.8 Trillion dollars in 2012 according to (Doc B), We should stop handing out money and start loaning out money, cut some money from all of the Big five programs and stop spending the money America doesn't have.

Another idea would be to avoid increasing the tax rates as this will help “minimize economic distortions that shrink the level of production” (Baker III, 2009, p. 1). To promote economic growth, our team recommends that we take the approach of increasing the corporate tax base and decreasing the corporate tax rates. Other suggestion is to reduce the deductibility of state and local taxes. Other reforms that could be looked

Many United States' citizens are unaware of the country's current financial state. Many assume that one of the world's wealthiest countries could never be in debt. This is untrue however, and, in fact, the country with the greatest income per capita is in major debt. This study will examine possible solutions to reducing the United States' national budget deficit.

I agree that a solution to fix the issue of the national debt is to increase taxes by fifty-seven percent or cut all government spending by thirty-seven percent. Although I agree with it, I think there maybe a way to improve it without making things awkward. Increasing the tax percentage could fix our problem, I just wonder how the younger generations will handle this considering the financial situation they are dealing with now with high student debt and other economic factors. Cutting government spending is not necessarily a bad thing. However, if you cut spending on vital programs like Medicare, the quality of products from the programs may not help us the way they were meant to

well. This is due to the profitable and valuable items that are exchanged through trade. In document 4,

This creates a budget deficit because there is more being spent than what’s being brought it.

any cuts in its returns from the treasury and any taxes on its wealth. Louis

Since the nation’s very beginning, it has carried a debt from the American Revolution. Only once in the entire U.S. history has been the debt zero, during President Andrew Jackson’s administration in the 1830’s. President Jackson set a budget like the other future and past presidents, but actually stayed within its parameters. However, the debt kept growing after his presidency and reached $18 trillion dollars today. The world has changed a lot since the 1830’s, the methods used during that period can no longer be the solution in 2015 because there are just too many factors that must be considered. The size and the population of the country have changed dramatically, foreign relationships are far more complicated and broader, and people’s expectations of the government are different.

The United States national debt can be divided into two major parts: public debt and intra-governmental

Minimize spending, keep taxes and regulations to a minimum, have policies that tend to favor business.

How would you change the Tax code? Balance the Budget? Pay down the US debt?

Government intervention to correct market failure can lead to increased revenue and reduction in unemployment. The revenue generated from carbon tax in two years was $15 billion. Governments can reallocate this revenue to other economic transactions such as the provision of necessary public goods like roads. The Medicare scheme, since 1985,