By Sam Gurdus
The United States is responsible for more than $22 trillion in national debt. When the national debt rises, it affects everyone.
According to The Balance, by April 7, 2020, the U.S. national debt had exceeded $24 trillion. This number is becoming problematic because, eventually, the United States’ creditors will question the country’s ability to pay back debt. This will affect the global economy, and, eventually, the population.
The first action that many would suggest to solve this issue would be to simply increase taxes in order to raise more revenue. While effective, this is politically difficult. That doesn’t mean that it cannot be done, though.
One controversial option would be to more heavily tax the wealthy. According to The Balance, as of 2018, the top 5% earned 23% of all U.S. income. In addition, the top 20% earned 52% of all U.S. income, while the bottom 20% only made 3.1% of the country’s income. This staggering disparity shows why this option would be so effective. It would only affect those who arguably have an excess of income, while leaving those with less alone.
The next step would be to decrease spending. The government spends trillions of dollars a year. For the 2021 fiscal year, the U.S. government plans to spend $4.289 trillion, leaving a deficit of $966 billion.
One area that many have suggested reducing spending in is the military. The U.S. government spends an estimated $934 billion on defense each year, a number which many see as excessive. Reducing military spending would save the country billions.
If followed, these two steps would put the country on a path towards stabilizing its national debt and eventually reducing it. As I see it, these would be the two most effective and least detrimental solutions to our country’s national debt crisis.
Debt in America is an issue that can and should be solved. When the national debt rises, everyone is impacted. It is time for change.
Featured image (at the top of this post): The national debt clock’s numbers rise.
PHOTO CREDIT: Loodogs / Flickr