Case 1. American Debt: How to deal with it. American Economic and Political World

Case 1
Enrique Fernández de Frutos
AMERICAN DEBT: HOW TO DEAL WITH IT
This brief case will discuss my point of view about American debt levels and the possible ways
to deal with it for equality and prosperity in their national economy.
Economic enthusiasts are currently arguing about what the government should do about our
national debt. There are different points of views: one part thinks that Americans should
withdraw funds from other existing expenditures and another big group thinks that they
should raise taxes specifically to deal with their levels of debt.
In the case of a raise in the taxes, where should the government re-purpose funds from
(Military, Medicare, Social Security, Drugs, Planned Parenthood, Education, Immigration,
Climate Change, Welfare, Science, etc.) and how would we use those funds?
One way to reduce the national debt could be to rise the retirement age for the purposes of
Social Security and Medicare, to either 67 or 70, as well as for state pensions in the UK, to
prevent funds from soon being depleted. At the same time, however, the life expectancy is
generally applicable only to high-wage earners/white-collar workers.
The only problem with raising the retirement age is that the older people become, the more
money we find allotting to them. People between 62 to 69 years old are less expensive than
people who are over 80. This can be used as an advantage as the American government could
expect people to go without their amount of funds without much resistance. Despite this case,
it would be a small and relatively insignificant amount of funds but we have to start at any
point if American government wants to reach a responsible spending budget system.
Despite the previous solution, I am personally worried that too much taxation would prevent
the economy from expanding, and would put more stress on middle-class people. I do think
that the government should first try to reduce wasteful spending as much as possible.
For example, even though I have many issues with Trump administration, they recently have
discovered approximately $300 billion in federal spending in programs that have expired, and
have promised to cut back on them. The truth is that wasteful spending occurs in the
American government all the time. One clear example is the case of pennies production in
America. USA loses an estimated $900 million from their budget producing pennies valued at
a small fraction of the amount! On the other side of pennies production, the honest purpose of
making pennies is that it provides jobs to American population.