Question

The Federal Budget

1. Why do you believe the federal budget should be reduced or balanced?
2. Why do you believe the national debt should be reduced?
3. What is the risk in reducing them, and what is the risk in failing to reduce them?
4. What would you do if you had a magic budget wand, and you could make three changes to the way we raise federal revenues on an annual basis?
5. Using that same wand what three changes would you make in how we spend that money on an annual basis?

Answer 1

1.

Federal budget should be reduced or balanced, because it will control the rise in the national debt of the country. Further, control in deficit financing, will reduce the interest payments and reduce the increase in tax and deductibles to the existing and coming generations. Besides, spending on non-productive work will be eliminated if federal budget is reduced or balanced.

2.

National debt should be reduced, because it will help control the increase in tax that is applied by the government to pay the interest of the national debt.  Further, rise in debt that exceeds the GDP, can push the country towards, the economic slavery, lower spending and lower savings. So, national debt should be reduced.

3.

Risk in reducing them is that it can reduce expenses on necessary development programs and social security programs can be stopped. It will cause chaos in the society and economy. Risk in failing to reduce them is that, it will increase the debt and more taxes upon the people. Lower savings and investments will take place in the economy. Besides, spending will be reduced.  As a result, the economy will suffer.

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