U.S. debt debate

 Cutting money Pictures, Images and Photos

There are a lot of discussions regarding the high debt levels that the U.S. government has and how they should go about reducing it. On the right, the Republicans and Tea Party Republicans are trying to look for ways to cut spending. They are very much against any increase in government spending even important investments for the country’s future. On the left, the Democrats see the debt more of a longer term problem that needs to be dealt with, but that investing in things like education, infrastructure and new technologies are more important. They are also more open to certain tax increases than the Republicans.

The reality is that in order to really make a serious dent in the debt, both spending cuts and tax increases will need to occur at the same time. This is a simple fact that everyone in Washington knows, but no one is willing to admit. For elected politicians, there is no better way to shorten their career than campaigning on both a tax increase and a spending cut. This strategy is generally seen as political suicide. However, in this case it is the only way to get out of the debt that has ballooned since President George W. Bush took office.

Although spending needs to decrease and certain taxes need to increase, it doesn’t mean that important investments should not be made. Investing in education, infrastructure and technology do need to be made even though there is a lot of debt. These are investments that will end up boosting the economy in the long term and this will help the debt situation, aside from the other, more obvious benefits. Taxes on the very rich need to go up as well. It will not hurt the economy and is a better solution than taxing the middle class or businesses.

On this issue, it seems that most Tea Party Republicans and other Republicans are wrong. I say most because I have heard from some that are more realistic and pragmatic in their thinking on this issue. At the same time, it’s good to have some Republicans in the debate even though they are mostly wrong because it keeps the Democrats from getting out of control. It will be interesting to see over the next few months what steps the U.S. takes on investments and the debt.