Unsurprisingly, the United States is picking up more and more debt. The debt of the United States is estimated to be around $22 trillion from the current $13 trillion in the next 10 years. When talking about the debt of the United States, two things stick out, which are debt held by the public and money the government owes to trust funds, Medicare and Social Security. The first debt is roughly $8 trillion, the second nearing $5 trillion. Both are expected to be on the rise. Although these are already serious problems the United State, there are underlying problems that are not really brought to attention to fully realize the problem; therefore, a debt bomb waiting to go off. Fannie Mae and Freddie Mac, a large private mortgage company, had gone belly up and the federal government has stepped in to run it. Next debt problem the government will face are promises to Social Security, Medicare, tax breaks, and traditional IRAs converting towards a Roth IRA.
I may be getting completely wrong thoughts from this article, but from what I read, it is all gloom and rain for the rest of days in the US of A. Large debts are starting to stack up left and right. Medicare and Social Security are starting to increase the ever-large debt. United States digs a deeper and deeper whole, which is starting to look impossible to climb out of as government revenue is starting to slow while the debt just keeps on growing.
The quickest way to fix the problem is to drop expensive promises to the people such as Medicare and Social Security. It would eliminate a large portion of the debts, but at the same time create a firestorm of anger. There isn’t a miracle answer to solve all of the United States’ economic woes. I would suggest increase our productivity and get out of these debts by outgrowing the debt. Cutting back all the spending the United States are doing is just going to anger a lot of people. The next best choice is to then increase productivity and slowly, but surely work down the debts until the United States can climb out of the large ditch.
http://money.cnn.com/2010/03/01/news/economy/budget_debt/index.htm
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