Saturday, October 16, 2010
Deficit tops $1 trillion again
This is the second year in a row the U.S tops $1 trillion in deficit. Even though it has relatively dropped to $1.29 trillion from $1.42 trillion last year, it is still historically high. Tax raise and decrease in government spending has contributed to this drop yet it seems the government is still way too far from finding a solution. President Obama has been passing several policies to get this problem under control and one of those was trying to let the Bush tax cut. What should the government do to stop this?
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4 comments:
one way the government can cut this massive deficit is try and diminish the costs we have accumalated from the war in iraq. it is such a large part of our deficit and we, the people, are paying for it through increased taxes
Indeed, the U.S. government has spent so much money on wars for the past decades and we were the one who started them. I dont see a problem of taxing the rich at all. Since they are making a lot of money out of our economy, it's reasonable that they have to pay more than other people
Economically, it is very easy to say what should happen - we should raise taxes and cut spending. Politically this is unviable. Raising taxes will generally never happen in an election year....which at this point includes effectively every year. Cutting spending means either cutting defense spending or cutting benefits, neither of which is likely to happen in the near future.
i agree with jr. A large cause for the deficit is the war in Iraq. Bringing troops out of the middle east will bring down the deficit that we have been stacking up. I also agree with Becky. There is an easy cure to the problem, but actually putting it into effect is very unlikely. Cutting spending and raising taxes is unlikely when there are elections and campaigning going on.
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