How to Get Out of National Debt, Essay Example

The debt situation in the U.S. was also worrisome but the two wars over the last decade as well as the recent financial crisis has further worsened the situation. But unfortunately our elected leaders have failed to take actions that indicate they really understand the magnitude of the problem. Instead of going for populist ideas, our leaders need to take realistic steps towards solving the debt issue.

The first thing should be to abolish the social security system and Medicaid except for the poorest citizens. The collapse of social security system is inevitable sooner or later because the obligations keep going up and the life spans continue to increase. It’s better to abolish the system now rather than waiting for it to collapse on its own. The second thing is to raise taxes on the rich and no one is being more vocal about it than the second richest American, Warren Buffet. Buffet argues that rich pay lower tax rates than middle and low income groups because most of their income is in the form of capital gains and investment income which is taxed at a lower rate. Buffet believes that it is unfair because the current taxation system is favorable towards the rich who need the least assistance from the government. Opponents argue that lower tax rates create jobs but hip hop mogul Russell Simmons made a very convincing argument that he always hires people on pre-tax profit and not post-tax profit.

The third thing is to get out of Afghanistan and Iraq because war is only increasing the national debt burden. The state governments have been forced to cut funding for state colleges and universities and it is ironical that the government can fund wars that are no longer needed but cannot provide resources for educating future leaders at home. The abolishment of social security and Medicaid programs, raising taxes on the richest people, and ending the wars will go a long way towards easing the national debt burden.