Question

The current U.S. debt is over 15 trillion dollars (approx. $140,000 per taxpayer/$50,00 per citizen) and is growing every minute - see http://www.usdebtclock.org/ for all the gory details. To what degree is the public debt a burden to future generations? What should we do about it as a nation?

Answer 1

Higher public debt acts as a burden to a certain extent because it affects negatively to the future generation. Due to the public debt, there will be higher level of taxation, SSTs and deductions to these people of the coming generation. It means that it will become an additional burden to these people. The next impact will be in the form of rethinking and cutting back of the benefits offered to these people, reduction in social benefits and rising cost of health care due to the lack of government support. Besides, the government will find out other means to repay the debt and raise funds. It will directly or indirectly affect the coming generation and they will face the pressure.

A nation and its government can do the following to resolve the issue of high public debt:

1. Careful planning of the step by step reduction in public debt by taking up different measures such as reorganization of government spending and revenue collection avenues.

2. Remodeling of the social security benefits and pension programs that is the biggest avenue of the government spending.

3. Phase-wise reduction in the overhead costs incurred by the government and its agencies so that the difference between the expense and revenue collection is mitigated.