Discussion 1: I believe the national debt is completely under emphasized in political discussions as if increasing in debt is not a bad thing and is expected. The debt continues to rise and we just continue to borrow and spend forcing us to continue raising our debt ceiling. The government doesn’t view this as a bad thing because they believe as long as GDP is raising close to the percentage of debt increase then it is okay. The difference between the US government and households when it comes to dificits and debt is the debt and deficit is compared to how the economy is doing GDP. So if the percentage increase in GDP is equal to or greater than the increase in debt and deficit the US is doing well. However, this does not work when it comes to house holds. If we want to reduce budget deficits we are going to have to increase spending in the short run for a while and increase our deficit and debt in the short run. That way it will help pay off by decreasing our debt and deficit in the long run. In addition to increasing taxes, decreasing government spending, and also grow our economy. Discussion 2: In political discussions, deficits and debt is being overemphasized a little bit. Right now if you look at the debt by percent of GDP, it is not as bad as other countries. But it is definitely a something that needs to be worked on, right now starting little projects in the direction of lowering the debt would be best for the future. The debt the U.S. has is different from that of a household, by it being so ridiculously big. A household debt can be paid in little time and doesn't grow at the same pace the debt of the U.S. grows. Also the way that the U.S. government can lower the debt is very different, the U.S. can raise taxes, they can create more money, and the government last longer than a household. This allows the government to not be weighed down as much like a household would be. Some ways to reduce budget deficit is by using money more efficiently, cutting programs, or they can raise taxes. The latter of the three is the most controversial and gets the most debate about, but using the budget more efficiently would be the best way to lower debt. The US. has lots of programs that shouldn't be around and using tax dollars, lower the budget on these programs would lower the deficit and the money saved can be used to pay off debt.
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