Question

The public debt is currently _______#__________. What do you propose the government do to fix this escalating problem? Include at least 2 specific examples.

Answer 1

As of February 2018, the total public debt of US is $20.86 trillion.

Following are my two suggestions to fix this escalating problem:

1) Reduce spending: The US government needs to reduce spending by removing all redundant government agencies and federal programs which are duplicative. A spending cut would reduce the budget deficit of the US government. For example, I think the government should stop spending on departments such as State Dept. and USAID Development Assistance and Corporation for Public Broadcasting to reduce public debt.

2) Stimulate economic growth: The government needs to stimulate investment to achieve a higher growth rate. Higher economic growth would result in a higher government revenue. For example, the US government can marginally reduce the corporate income tax rates to stimulate investments by corporates. This would help achieve a higher economic growth and higher government revenue.

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