Although I am not an American, I am interested in its economic issue. I suppose all the people in the world are concentrating on America’s economic problem. Nowadays, America is facing a severe problem in national debt and depression. These things affect people’s work and life. According to the statistic online showed that the outstanding public debt today is $11,200,322,560,654.82. The estimated population of the United States is 306,042,643. So each citizen’s share of this debt is $36,597.26. Like what economists said, the national debt has continued to increase an average of $3.84 billion per day since September 28, 2007.
Since I saw these debt statistics about national debts, I feel surprised about America’s debt problem. As I know, in economics. The balance budget means the government’s income is equal to its expenditure. For instance, when the deficit is $0, the balanced budget occurs. At this moment, taxes paid to the government equal to government spending. If the local government or states and private individuals do not add money to the economy, the total amount of money remains static.
However, considering the current economic problem in United States, the deficit occurs, which means taxes paid to the government is less than government spending. As a result, it required government to borrow money to cover it. The U.S. government has this crucial problem with its debt due to the reason of deficit. As I searched the information online, this deficit was accumulated for a long time since 1970. The government has kept spending much more than it took in.
Most people are now concentrating on this issue, economists and government tried to fix the problem. However, this issue has not been solved since it occurred. Although I am just a student, more concretely, I am an international student, not local resident. But I want to display my point of view. I thought the U.S. government should raise the tax rate for those who has huge income. Nowadays, rich people are still rich, poor people still poor, workers get less salary. Actually, the rich people they have endless money that being stored without using. I suppose they should use the money on paying back the society. Although the tax rate might be a good way, what can be the appropriated rate for the new tax rate for high income people?
This means the government has to rearrange the social security system so that they can make responsible for this job. For example, the social security should concentrate on people who need it the most. Social Security does not need to provide extra income to those who are rich enough or has already got well-off and are able to fund their own retirement.
Furthermore, for America people, I suppose they should prepare the financial problem for their future life instead of depend on the government. In China, all families have accounts for storing their extra money that saved by themselves. When they face the emergency issue about finance or medical problem, they will have money to fix the problem. So in my opinion, America people had better make a saving account for their future and retirement. If the department of social security can manage their accounts, it will be easier for people to operate this problem, so that people do not need to worry about it.
Since the U.S. debt a lot of money from other countries, it is not easy to fix this problem. Just like Although Obama would come close to meeting his goal of cutting in half the deficit he inherited by the end of his first term, the CBO predicts that deficits under his policies would exceed 4 percent of the overall economy over the next 10 years, a level White House budget director Peter R. Orszag yesterday acknowledged would "not be sustainable." The result, according to the CBO, would be an ever-expanding national debt that would exceed 82 percent of the overall economy by 2019 -- double last year's level -- and threaten the nation's financial stability.
So like what we see, the problem what U.S. government is facing is extremely complicated. The balance budget requirement might be make somebody worry that government will reduce the social security benefits, especially for their retirement benefits. However, the social security is a government program, it should be operated by government control, and the fund for this program is from the tax turn in by the citizens. Otherwise, making a new method to fix the debt issue will make both citizen and government have problem in the future and will not protect balance budget perfectly.