Wednesday, April 13, 2011
EXPLAINING THE DEBT:
To understand the most responsible way to tackle our long-term deficit problem, it's important to first understand exactly what the challenge of the debt is and what caused it. Interest rates and inflation are currently low, and addressing unemployment is a far more pressing immediate problem. A March 2010 CBS News poll found that 51 percent of Americans said that jobs/economy is the most important problem facing the country, and only seven percent said the deficit was. Still, we should address the $14.2 trillion debt and the $1.3 trillion budget deficit over time, as doing so is crucial to our long-term economic health. In the short-term, there are a handful of major factors driving our debt. This includes the cost of two wars, a runaway defense budget, the Bush tax cuts for the wealthiest Americans, taxes on the richest Americans being the lowest in a generation, and a recession caused by the lack of regulation of Wall Street. The greatest long-term driver of our debt is health care costs, with our "possibly most inefficient" system in the world having us spend more than any other country in the world on health care with worse results. Thus, long-term deficit reduction plans that do not seriously deal with these causes of the current debt are avoiding the key issue.