After taking an in depth look at the facts presented in both the I.O. U.S.A film and additional research it is evident that the national debt is a problem that effect citizens across the United States regardless of their financial status. In the short-term we need leaders who are not afraid to make tough choices that may not be popular, such as increasing taxes. The long-term effect of the massive national debt could mean our children may be taxed beyond their financial means. I would rather take some responsibility now than have future generations be burdened because we were not able to make the appropriate choices.
In 2007 the federal Debt was 8.7 trillion and the GDP was 13.5, 64% of GDP
The current national debt is $16 trillion
4 Deficits that make up Federal Debt-budget, savings, balance of payments, and leaderships
In order to balance the budget- it can be done by 1) Cutting Spending 2) Raising taxes
Spending is made up of - social security, Medicare, Medicaid, military, interest on debt, and other expenses
Federal Revenue is made up of- personal income tax, payroll tax, corporate income tax, and other taxes
Social Security surplus is paying other bills within the budget
Balancing a budget can be a difficult task to do overnight but I fear if something is not done soon the programs we have grown accustomed to may completely disappear. While I do not think the government should completely eliminate any of these programs, I believe more can be done to ensure the funds being appropriated towards them are used in an effective manner. A more in depth screening process can be put into place to ensure the people who are reaping the benefits of these programs are in real need of them. American citizens are paying taxes with the idea that one day if they need it these programs will be available to them.
The government is a major contributor to the healthcare industry and the national debt reflects that. As Wayne Smith confirms "In...