Fixing The National Debt Is A Coservercal Issue Within Our...

Fixing the national debt is a coservercal issue within our government. Since the two parties have opposing views on how to fix it, it creates gridlock on the process of creating a plan to reduce it. (Perdue, 2015) Our federal government debt has extensively tripled since the year 2000 (see appendix A) (Historical Debt Outstanding Annual 2000-2015,2015), today our debt is a tad bit over nineteen billion. (U.S.NationalDebtClock.org , 2016) We have arrived at his point through the imbalance between revenues and spending, fueled by ever-high interest rates. Which will approximately result with us reaching ninety percent of GDP. (Greife, 2010) The government has no revenue. Therefore, the money it receives comes from the people and the†¦show more content†¦(U.S. National Debt Clock.org, 2016) As a country we have carried debt since the American Revolution, in which we borrowed money from France and Netherlands . Yet under Jackson’s presidency, he sold government-owned land and cut spending to once again make us a debt free country. Now days resolving our debt is not at all that simple. Dollars are not minted much these days, instead, they are digital clouds created by the Federal Reserve. (Grant, 2016) This was made legal after the ruling on the case Perry v. US in which the supreme court ruled that our economy will no longer be based on the gold standard. (Perry v. United States 294 U.S. (1935), 2016) This should concern every citizen considering the fact that only the Federal Reserve can print money; the states and local government cannot. That causes state governments to cut services and raise taxes to meet pension obligations to public employees. (Grant,2016) Liberals and conservatives currently have opposing views on how to decrease the Federal debt. Over all, Democrats believe that the way to reduce the debt is to heavily tax the rich. Senate Democrats developed a debt reduction plan that would cut 4 trillion dollars from the projected borrowing over the next decade, without touching the expensive health, retirement and social programs. Within the plan, sharp cuts will happen at the Pentagon and other