Image yourself as President in 2020 and the National Debt is over $26,000,000,000,000 and growing at over a $1,000,000,000,000 a year pace. What would you do? These are some of your choices.
Raise Taxes — Unless we are in a deep recession all taxes could be raised in yearly stages to pre-Bush tax cuts when the economy boomed. Only 14% of the companies benefiting from the recent tax cuts have passed any of the money through to their employees by either raises or one year bonuses. The others increased management salaries and benefits, bought back stocks, and increased dividends.
Cut Social Programs — Revise and/or reduce Social Security, Medicare, Medicaid, and other safety net programs. A national health care program like Medicare from birth would be impossible.
Cut Military Expenses — Depending on world political stability, cuts here may be difficult. Several billion can always be cut without damaging the country’s security. Unfortunately, the V.A. costs will have risen significantly eating up the billions saved elsewhere.
Interest on the National Debt will grow as the Debt increases and the percentage rate increases due to the Federal Reserve’s need. Just like Greece, Italy, and others, we will be borrowing just to pay the interest.
The Republican’s have always been for tax cuts, no deficits, reducing debt, and cutting social programs. The Democrats have traditionally raised taxes to support new social programs.
The status quo will only increase the debt making debt the greatest National Security Issue. What would you do?