How We Can Solve the Debt Crisis? Really?

Introduction

Tom Coburn, the author of, “How We Can Solve the Debt Crisis? Really?” argues that “structural entitlement reform” is necessary to solve the current debt crisis. He says that current debt crisis can be corrected by increasing the revenue, but, not the tax rates. The democrats and the Republicans have to accept the reality. The main hindrance in this process is the conflict between the Democrats and the Republicans, who are working for their self interest. The goal of Republicans is to sop the revenue increases, while, Democrats are hoping to become champions of enlightenment (Coburn, p.1). The argument of the author is correct because the conflicts of the two parties would increase the tax rates in the future and decrease the entitlement benefits which will adversely affect the life styles of the American Population.

Discussion

According to the author, following factors have a direct impact on introducing the structural entitlement reform”.

Increase the Revenues

The solution given by the author is practical because there is a dire need to increase the revenues so that the debt crisis can be managed. The international community is not going to lend money to United States if the situation continues. Therefore, it is correct that that doing nothing is not the solution. Rather it is the act of betrayal (Hess, p.201). The author is correct when he says that if the government increases the revenues by increasing the tax rates, it can have an adverse impact on the lives of the American people. To make things worse, the depression of the American dollar has further increased the debt crisis. As a result, the interest rates and the inflation will increase will increase, and the standard of living of middle class will decline further.

Reverting the Meltdown

In order to correct the situation, the National Spending should be reduced. Republicans are correct that reducing the expenditures is an alternative to increasing the revenues, while, avoiding the tax increase. For instance, the war on Terror has consumed a significant portion of the defense budget. According to an estimate, by 2012; the entire federal budget will spend on social security, Medicare and Medicaid expenses (Coburn, p.1). Not surprisingly, the social security is already in crisis, and the deficit is amounted $ 49 billion in 2010. Therefore, the claim of the Democrats is incorrect that the social security is safe (Coburn, p.1).

However, Republicans have not given the practical solution. This solution may work in the short-run, but, in the long-run, it is necessary to introduce “tax reforms” so that a permanent solution to the problem is available. The National Expenses can be reduced to a certain amount, but, after reducing the expenses, the government has to look for other ways to increase the government income.

Political Games

The elections of 2012 are stopping Democrats and Republicans to take action. The goals are conflicting and both parties are too busy branding themselves. However, American people do not need branding. Rather they need bravery and effective measures so ...