How can United States address make better national debt?

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Expert Solution

Increase the age of retirement - In the last 50 years , life expectancy has risen from 70 to 78 years. However, the mean retirement age has declined from 65 years to 62 years. Increasing the age of retirement for Social Security would not just lessen the program's onuses, but would also motivate persons to remain in employment longer. And a bigger labour force implies more taxable earnings & stronger total economic growth.
Control discretionary expenditure- In the last decade , discretionary expenses have grown more rapidly than the economy itself, even without taking into account defence expenses. To make sure that statesmen undertake tough decisions in this domain of the budget, there should be strong enforceable expenditure limits in place. Even merely restricting rates of growth to inflationary levels would save $ one trillion comparative to what would otherwise occur
Legislate an energy taxation- US is unlikely to stabilize its debt thru spending cutbacks alone, & the prevailing taxation system is too inept to raise all the required revenue. An energy taxation can offset a bit of the difference. By charging carbon emissions / gas, as opposed to employment & investment, US can lessen deficits & tackle climate change without damaging the economy much.

Rahul Sunny answered 1 year ago

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