Take a look at a few of the reasons that the United States government has to deal with its debt issues now.
Debt Challenges For Government
If any organization could use better debt management practices, it is the federal government. The government has run up trillions in debt over the last fifty years and is now facing a crisis in several different areas. The country has to tighten its budget just like regular citizens. That means increasing the amount of money coming in and reducing many of the contributors to the debt.
There have been lots of discussions over making changes to the Social Security program. One of the methods discussed to save Social Security is to reduce the amount of benefits that each person receives. This would involve cutting back on the amount of money paid out every month. Another method being discussed is to increase the age of eligibility. Future recipients would have to wait additional years before being able to receive Social Security benefits.
Medicare is one of the biggest areas of spending for the government. It is only a matter of time before the government runs out of cash to handle the medical issues of an aging population. Some individuals refer to Medicare as some sort of government debt scheme. Government debt is seen almost like a Ponzi scheme with the money about to run out soon. While it may not be that bad, the program does have to be addressed if it is going to be solvent going forward.
One of the contributing factors to the debt problems of the government is the low amount of income that comes in. It is hard to address an exploding debt problem with insufficient resources. There simply is not enough extra money to make any kind of real impact on the country’s long term debt. The government needs to increase its revenue and use the extra money to aggressively pay down the deficit. The method that the government uses to raise revenue can be saved for a different day.
Article publié pour la première fois le 14/12/2011