spending

Reader comment on: Spending, Not Tax Cuts, Drives Federal Budget Deficits

Submitted by Dawson (United States), Feb 14, 2024 20:16

The national debt is absurd and it's ridiculous that politicians avoid this topic. There will always be some sort of crowding out effect but the government needs to develop a strategy to strike a balance or at the very least reduce the annual deficit from the trillions to billions like the early 2000s. In the short term lowering taxes and increasing gov spending would only increase inflation. Higher taxes and lower gov spending in the short term could help reduce interest rates and inflation but would probably harm the GDP. These deep deficits are not sustainable and the gov would probably find the most success bringing inflation down and then operating in a balanced manner while lowering the debt ceiling. A potential course of action could be to bring taxes and gov spending to a moderate level trying to strike a balance. Not too high that Americans feel like taxes are extreme but not so low that the gov hardly collects revenue. On spending - not so low that the gov can't operate but not so high that they become overly leveraged. The national debt will not be paid off anytime soon but it doesn't mean that we cant reduce it.

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