The National debt in the United States of America refers to the money that is borrowed by the federal government through the issue of securities by the Treasury and other agencies of the federal government. The US national debt is made up of the debt held by the public and the debts held by government accounts. The high level of national debt in the United States has elicited immense debate between Obama and Romney in their presidential campaigns. Both of them have tried to convince voters about the strategies they embrace in order to ensure that the national debt drops from $ 16 trillion to a more reasonable level.
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This paper explicates the national debt issue on Obama vs. Romney.
The national debt in the United States of America has been rising at an alarming rate. It was approximately $ 10 trillion when George Bush left the presidency. Currently, the national debt is $ 16 and economists project that it may be disastrous for the United States in case it is not controlled effectively. President Barrack Obama has put in place more modest proposals on how to address effectively the national debt issue. Calmes (2012) asserts that Obama has already signed into law; the $ 1 trillion in spending cuts that would help address the gaps in the budget through shallower spending. This would be appropriate for improved economic performance and help in the reduction of the national debt over the next decade. This implies that the federal government will not have to incur debts each time through the issue of national securities as the level of spending is controlled. This plan would ensure that the national debt is cut by $ 4 trillion over the next few years hence promoting further economic development and more stability in the United States of America.
In addition, President Barrack Obama has proposed higher taxes for top earners in the United States of America in order to help fill the national debt gap. This type of taxation would increase the revenues available for the government to conduct its activities without having to issue different securities in order to raise revenues for completion of various projects. Higher taxes on the highest earning individuals would ensure that there is fairness in the economy through redistribution of wealth in the United States of America. The government would be able to raise more revenue, and it would reduce debt borrowing hence reducing the overall national debt.
Mitt Romney has proposed to introduce significant cuts in the government spending for over a decade in order to ensure that there is a reduction in the national debt. More so, he has promised to dedicate more resources to the national defense in order to ensure that the country is more secured, and the economy is stabilized over a long period. Increase in the military spending rates is aimed at ensuring that there is strong defense of the country against any external aggression. Romney has laid down proposals that would ensure that the spending of the federal government is cut down by 20% of GDP by 2016 (Klein, 2012). According to Romney, this urgent cut would promote stability in the growth of economy by ensuring that the national debt is effectively reduced. This proposal suggests that the current 24% of spending by the federal government is high and needs to be cut down urgently hence reducing the level of national borrowing. Romney also looks forward to overhauling the health sector and the tax codes in the promotion of better economy.
Notably, most of the policies being put in place by President Barrack Obama in the move to reduce the national debt are more achievable compared to Romney’s proposals. The proposals by Romney appear to be politically unachievable, especially within a very short period such as a decade. Klein (2012) reiterates that President Obama’s proposals are achievable but too modest in some sense. Comparison between the proposals of these two presidential aspirants reveals that the $ 1 trillion spending cuts signed into law by President Obama would help reduce the deficit in the US by $ 4 trillion or more over the next decade. On the other hand, Romney’s $ 5 trillion reduction in tax cuts focused on the wealthiest Americans may widen deficit or increase the level of taxes among the middle class individuals. Therefore, the proposals by President Barrack Obama are more realistic and may help in addressing the national debt issue that the United States is facing. It is worth noting that Barrack Obama has played an instrumental role in addressing most of the economic woes left behind by George W. Bush and he may address the national debt through these policies. Therefore, Obama’s policies on the national debt are more realistic and achievable in the strategies to repair the economy of the US.
In conclusion, the national debt in the United States of America refers to the money that is borrowed by the federal government through the issue of securities by the Treasury and other agencies of the federal government. The US national debt is composed of the debt held by the public and debts held by government accounts. The high level of national debt in the United States has elicited immense debate between Obama and Romney in their presidential campaigns. Barrack Obama has put in place proposals that are achievable over the next decade despite the fact that they are too modest. Mitt Romney, on the other hand, has put in place proposals that appear overambitious and could be politically unachievable due to their nature.