What should be done to lower the national debt? essay sample

 

A lot of suggestions aimed at lowering the national debt of the US have already been made, but the expected decrease is nowhere on the horizon. As a matter of fact, the US is not the first country which faces the incredible amount of national debt and neither it will be the last. The wide range of strategies was developed to cope with inconsistencies in the budget, but there is no universal key which will help every single country in trouble to make good the deficit of funds. The federal government shall define which of the tactics will work the best with this particular country, and here come their options.

Issuing bonds to stimulate the economy with the active public spending has proven to be an effective tactic in stimulating an additional tax income, however, bonds are not very helpful in reduction of the long-term governmental debt. Another way to reduce the national debt is to keep interest rates low. This mechanism makes it easier for individuals to borrow money which will be further spent on goods and products. Spending cuts and raising taxes are the methods which usually work in a pair; they already were undertaken by the US and some European countries. And when all these efforts failed, it is still possible to ask for a bailout or announce the default.

Debt reduction policies are frequently criticized by higher officials who claim that the data on the dynamics of debt reduction are distorted and all tactics mentioned above will have unfortunate impacts upon the national economy. Nevertheless, current billions of debt cannot be ignored anymore, consequently, the federal government shall finally make their decision which will rescue this country from the debt.

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