Bringing the federal debt under control will mean making tough choices, such as cutting popular programs or raising taxes. But people will only be willing to make such hard choices if they trust their leaders to act responsibly, so that their sacrifices are not wasted. To help you think through the best way to do this, we describe several different ways of attacking the problem. (Find out more about our "Choicework" discussion guides, or download the PDF version of this choicework guide).
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Perspective 1
Limit Their Choices: Put Systems in Place that Make it Harder for the Government to Spend Recklessly
Therefore we should:
- Live within your means. Pass “pay-as-you-go” legislation, meaning that if a spending bill is passed, it must be offset by either a spending cut someplace else in the budget or a raise in taxes to cover the new expenses.
- The Amendment approach. Pass a balanced budget amendment. Most states have this and it simply makes it illegal to run a deficit and run up debt.
Arguments for:
- This is the simplest answer to the problem because it removes the possibility of creating more debt by borrowing money to cover our expenses, and therefore guarantees more responsible spending by government.
- This will require government officials to think ahead, plan carefully and worry about the long-term budget issues instead of focusing on short-term politics.
- This brings government in line with the realities that businesses and families face every day: your spending has to be in line with your income.
Arguments against:
- This is a dangerously inflexible approach to governance. Sometimes the government needs to borrow money in a national emergency, such as a hurricane or a terrorist attack.
- This approach also obstructs responsible borrowing for important investments in things like education, new technologies or new sources of energy that can be vital for our economic future. It’s like saying that just because some people run up their credit cards too much, no one will be allowed to take out a student loan anymore.
- This doesn’t do anything to keep government open and honest – without ethics reform and greater transparency, politicians will just end up fighting over a smaller pie.
Discuss this choicework Perspective 2
Increase Transparency: Make it Easier to See What’s Going on so Government Watchdogs Can Do Their Job
Therefore we should do things like:
- Make the federal budget easier to understand. We need to simplify the presentation of the federal budget, and also require that it be placed on the Internet each year in an easily searchable form. That way, reporters and watchdog groups can easily find out what the government is proposing to spend the nation’s money on.
- Protect whistle-blowers. Strengthen legislation that protects and rewards “whistle-blowers” (government employees who “blow the whistle” on wasteful or corrupt spending) so they’ll come forward and bring abuses to light.
- Shine light on “pork-barrel” spending. When members of Congress add spending bills for pet projects to an existing piece of legislation this is called an “earmark”—also known as “pork.” Right now, members of Congress simply vote for the bill as a whole, without needing to cast individual votes for any “earmarks” that have been added – even if they have absolutely nothing to do with the original legislation.
Instead, we should require members of Congress to make a formal vote for each added “earmark” to create a public record of their support for that additional spending. We also need an online earmark database that identifies every such project, along with who sponsored the earmark, who benefits, and which representatives voted for it.
Arguments for:
- The best way to clean up government spending is to bring keep things out into the open and keep a close eye on them—as they say, “sunlight is the best disinfectant.”
- Government employees should be encouraged to stand up for what’s right – and protected from retaliation when they do.
- Maybe there’s nothing wrong with members of Congress getting money for their home states, but if so, they should stand up and take responsibility for it.
Arguments against:
- This sounds fine in principle, but in practice the federal government is so vast and complex it’s impossible to keep enough of an eye on it.
- Transparency by itself is not enough. Campaign contributions have been public for decades, but politicians and donors always find a way around the rules.
- The real problem is how the government taxes and spends our money. We need to actually change the way that’s done, not just get a better view of how the government does it.
Discuss this choicework Perspective 3
Remove Temptation: Change Behavior by Changing the Incentives
Therefore we should do things like:
- Reform campaign finances. Elections are so expensive that candidates can’t help but become dependent on big donors. We should reform campaigns so politicians are less beholden to big campaign donors and therefore less tempted to do them favors by adding spending bills to keep them happy.
- Create positive incentives. The public should reward politicians who manage the nation’s finances responsibly through their votes. Moreover, we should provide bonuses to government bureaucrats who improve efficiency and save the nation money by figuring out how to do more with less.
Arguments for:
- If we want leaders who can exercise judgment on behalf of the greater good we need to stamp out corrupting influences and punish irresponsible behavior.
- At the same time, we need to reward responsible behavior. We need carrots, not just sticks, if we really want to change how the system works.
- Voters are the key to changing the system – if the public held politicians accountable for how they spend the taxpayers’ money, we’d have better government.
Arguments against:
- People have been talking about things like campaign finance reform for years and we’ve seen very little, if any, progress. We need faster solutions before we’re so buried in federal debt we’ll never be able to get out.
- This sounds good, but we have to give voters the tools they need to make better decisions, like a more open and transparent government.
- A government can be honest and still avoid tough decisions on things like Medicare, particularly if the voters aren’t ready to make sacrifices.
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