Running the Government without Debt Essay Example | Topics and Well Written Essays - 2250 words

Running the Government without Debt - undertake ExampleHowever, what is equally disturbing is that the US authorities moved away from surplus budgets during the latter diaphragm and never even gave it a rethink. There has been a attach tendency to succumb to populist agendas and vested interests which marked the post-surplus era in the US economy. In most cases, popular sentiment is but a frontlet for narrow political gains. This era has seen a marked increase in spending, not only for newfangled ventures but also for cutting megabucks unnecessary and wasteful expenditure. While running a government without debt is likened to running a company, we conveniently forget that a company does so out of a insufficiency of choice. No company screw afford or receive the luxury of unlimited credit and eventually should plough its profits back into the system. Only in the rarest of rare cases can a company bet a bailout package. However, such amount of moneys are time bound and come at a price. Hence, a equilibrize or surplus deficit is the only way out for a sound financial system. 1. Curtailing braggy Spending The three areas that can directly impact federal spending are defense, social security, health care and interest on debt. Striking at these revenue guzzlers will eliminate the imply for deficit budgets. As the saying goes, a penny saved is a penny earned. Defense seems to be unmatchable area of spending where the only way is the way up. After the end of the cold war era, the need for maintaining massive armaments has become irrelevant. The US, with its relative isolation from Europe, Asia and Africa does not require increased spending in accouterments either in the long or short term. Intervention in foreign countries should be brought down to the barest minimum. Instead of unilateral incursions into certain earths, the US should focus on diplomatic initiatives as a measure to reform them. This would keep public anger at check by reducing losse s and reverses suffered by the military abroad. The use of the armed forces should be restricted to peace keeping and for ensuring that humanitarian aid reaches the think target. The nations nuclear arsenal should be used only as a obstructer and not to encourage an arms race among carrys. Social Security is another area where reforms are called for. The crownwork on payroll tax should be removed so that income over the threshold limit can be brought under the tax net. Gradually raising this rate can cover the shortfall in this area over the course of time. With a graying population, one should take a serious note of the solitude age. This should be gradually and progressively raised to 75 to compensate for the additional expense incurred by maintaining the bribe retirement age. Likewise, we need to identify the extent of retirees who are affluent enough to either be taxed or have their benefits curtailed. Health Care is the third area which can do with cost cuts. As cyclooxy genase (April 5, 2011) reports in CNBC, there is a need to shift the burden on Medicare and Medicaid spending from the patients, and thereby the state to the providers of health care i.e. hospitals. As in the case of social security, the age for eligibility to Medicare can also be increased from the present 65 to reduce costs. Debt Interest is the area that could seriously affect the debt levels over time. With much public debt owned by foreigners, interest payments leave the country rather than circulate within the nation if US citizens received the interest on debt. 2. Increasing the Revenue Directly increasing the revenue by