Without raising federal income taxes or cutting federal benefits, what politically viable solution(s) do you propose to eliminate our nation's 14.3 trillion national debts?
Increase in tax is often considered the only best options to overcome the national debt. However, this technique has always received mass criticism from public and from other political parties. Which is why, economist and politicians keep this approach as a final option. Due to recent financial crisis, the ongoing war on terror and aiding different countries are some of the causes that shoot up the debt of America to $ 14.3 trillion. The debt amount poses a great threat to the American economy and in order to repay the debt the government is seeking various options most preferably raising federal taxes. However, this option has cost Democrats a lot of seats in the recent elections. However, this is still considered the only possible way out to repay the debts.
This study will attempt to provide a viable solution without raising federal income taxes or cutting federal benefits to eliminate our nation's 14.3 trillion national debts. This study will in this connection analyze the existing literature and the views of different economist and other concerned person in order to validate the possible viable options. The only possible option that seems viable is to focus on economic growth. (Yasheng, pp. 31-47)
How to Achieve Economic Growth
Economic theories of growth refer to potential output or output level of full employment. Popular opinion usually gives three different answers regarding how to grow an economy:
The first tells us that the economy grows because workers are increasingly using tools perform their tasks. This means more use of machines which demand more capital. For advocates of this idea, the key to economic growth is investment.
The second answer is that workers with a greater stock ...