The Moment of Truth

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Moment of Truth
Introduction
The Moment of Truth Project aims at making sure that the fiscal plans and processes of the federal system are in check and could work well to the benefits of the American people. It is with this in mind that the Fiscal Commission Report was released with the aim of warning the American government and its people of the red flags they need to look out for as they seek economic prosperity. There are quite a number of issues that were highlighted in their report. These included the current economic crisis facing the nation, its causes, possible countermeasures and strategies that could help to bring the country back on its feet as far as economic advancement is concerned. The essay below seeks to dissect this report so as to make sense of what exactly the Moment of Truth has for the Americans.
Reasons for the Debt Crisis
According to the Moment of Truth (1), one of the causes of the high debt rate is the budget of the country. Rater than focusing on the investments that could help in raising the GDP of the nation and making more people self-reliant, the budget is more concerned on the issues of consumption and expenditure. Every other day, the government comes up with plans which seek to increase its recurrent expenditure. This includes aspects such as the healthcare plans, housing plans and so on. These are given more priority as compared to investment opportunities. As such, the government becomes more of a spender than a gainer. This makes it impossible for the government to meet its demands; hence it has to borrow from its competitors. However, it is unable to clear these debts, which makes it sink even deeper into the debt problem.
Another factor cited by the Moment of Truth Fiscal Commission Report (2) is the current tax code. The report has it that this tax code is complex and inefficient. As such, it supports the rise of "housing bubbles and health care cost growth" (Moment of Truth 3). This is just a form of recurrent expenditure that the government engages in. The taxes are brought down on the mortgages, housing, and other healthcare plans. The government, therefore, has to shoulder the remaining balance. As these taxes are brought down, they are compensated for by increased taxes in investments. Therefore, the government is not so much concerned about investments which can create more work for the youths and the general population. There are no proper measures to make sure that there is a conducive environment that can lure investors to come into the land. Furthermore, there is no major move that can be said to help in making the nation advance towards global competitiveness. Therefore, while the government increases on the recurrent expenditures and forgets the investments and employment opportunities, its economic system losses the balance. There are more expenses than the income, which implies that more has to be borrowed in order to deal with the deficit...