Monday, November 23, 2009
Wave of Debt Facing US Government
Read the article, then click on the Multimedia graph on the left. At the bottom are listed possible solutions: (1) raise taxes/cut services, (2) inflation, (3) default on debt, or (4) economic growth. Which of these is most palatable? Why or why not?
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My dream would be if the world economy could just default its debts, though I admit this is entirely too unrealistic. I think the most palatable option would be "growth," and there are certianly growth opportunities in green technology. Certainly, if the U.S. become the leading world innovator in green technology, we would at first incur debt in the research, development, and production of green technology, but in the long run would undoubtedly benefit and certainly pay down our debts. I see the easiest, but certainly not the most palatble, option as being letting inflation rates rise and roughing out the lower satndards of living. And maybe when the war in Iraq is over, let's not promote our troops to come home, have sex, and make a lot of babies. We could give them condoms as they come off the boat or something, because these baby boomers are really going to screw things up for my generation!!!!
ReplyDeleteI think that the most palatable would be economic growth. We would be better off if we found ways of creating new technology and ways for people to transfer money, then to do any of the other options. If we were to cut services and raise taxes, it would cause more people to not pay taxes, this would cause a greater situation. I agree with Garrett that we could start finding ways of Green Technology.
ReplyDeleteWell, the graphic is pretty self-explanatory as to which solution has the greatest potential. In all but growth, different groups end up worse off and angry.
ReplyDeleteEconomic growth is definitely desirable, just because there are no negative consequences. Jobs will be created, money will roll in, all our problems will be solved.
ReplyDeleteBut I think it's quite obvious that that isn't going to happen. So as an actual reasonable suggestion as to how to solve our debt issue, I'd have to vote for inflation. It won't outright anger people like raised taxes would, and it wouldn't cause the worldwide panic like defaulting would.
Economic growth is obviously the most palatable solution. Revenues from taxes would rise faster than debt payments, as the graph states. It is the only solution where nobody could complain or be unstable. New technology could help the economy, much like Garrett said about the Green Technology. Hopefully that will bring a bright future to our otherwise unstable economy.
ReplyDeleteI would have to say economic growth, because looking at the other graphs, you notice that no one is happy because someone else is being benefited and with economic growth everyone wins. More Green Technology like Garrett said would help our economy.
ReplyDelete-Felipe M.
Economic growth seems like the most palatable solution. Although it does seem unrealistic, if the economy grows fast enough it'll lower the country's debt. Green technology sounds like the perfect way to start this growth.
ReplyDeleteGrowth may be the most desirable, but in our current situation, it is also the most unrealistic. To me, the most realistic option would be to raise taxes, because we know that though people will get grumpy about it, it works.
ReplyDeleteWell, I don't necessarily think that we should give up on economic growth (Christina), we just have to generate. A smart way to do that would be to cut spending. A lot. Obama has already done more deficit spending than every president from George Washington to George W. Bush, in only the first year of his term. If we are in such pool of debt, why is he spending so much trying to make everybody happy? Either we take a small standard of living hit now, perhaps trying to cut taxes and stimulate investment, or future generations (as in we the students) take a bloodbath in standard of living for decades. Believe it or not, cutting taxes actually stimulates more economic growth because it encourages spending and investing, and if we keep spending and raising taxes then we will make the same mistake Jimmy Carter made. By the end of his term, the highest tax bracket was 72%, inflation was 18%, and unemployment was 9.5% (Keynesian economics wasn't there to save the day) because the government relied only on tax revenue and not by stimulating growth through ways other than spending.
ReplyDeletehere is a thought.. since we are very deep in debt lets try not too keep adding onto the debt. Its common sense. you can not buy your way out of debt. this administration needs to stop this immature spending and start growing the economy by cutting taxes and giving tax credits to small businesses. we need to stop listening to the unions and start listening to WE THE PEOPLE!!!
ReplyDelete