With a rising national debt there is a great deal of talk as to what our government needs to accomplish to reduce this monumental debt. Cutting spending is a scary thing because government spending helps prop up our national economy. Not the best thing to do now that the economy is showing some minor signs of recovery. Raising taxes? Again, no matter how you do that, either raising taxes on the rich or the middle class, will likely also hurt a recovering economy. But after all is said we need to do both to make a dent. It's no different than what households do when they find themselves in economic straights. Increase revenue by taking a second job, and cut out every expense that is not needed.
The real question is not what needs to be done but rather, how it will be done. I suspect both increased taxes and a cut in government spending is likely. This spells a very sluggish economic recovery in the future. But there's another weapon that is less suicidal for politicians. Protectionism. This is an ideology to protect USA jobs, tax foreign firms, cut down on illegal immigrants, promote "Made in America", start a business in America. Can the government be effective in this? Is it already starting? Pay close attention to the news in the comming months to see if my theory is right.
No comments:
Post a Comment