Drawbacks of Maintaining the Status Quo and Reducing the Debt as a Percentage of GDP

Assignment 4
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Assignment 4
The annual report from the non-partisan U.S. congressional budget office (CBO), published a report indicating that the American debt, which is comparative to the economy’s size, is expected to rise past the World War II levels towards the year 2030 if the current laws are not changed (Gray, 2018). The CBO has predicted that by the end of 2048, the national arrears will amount to almost 100 percent of the gross international products and the GDP will accumulate to 152 percent. There is a growing national debt because the administration’s mandatory expenditure is increasing such as the aging of the baby boomer generation, social security, and Medicare programs. However, the above spending is expected to reduce in relation to the GDP.
The United States has grown closer to financial disasters because the administrative branch and the Senate have constantly ignored the CBO warnings. Nevertheless, something can be done to address the growing national debt, which is to modify the budget’s path through improvements that can restructure the function of the state government and programs that will bring spending under control. The president and parliament need to act instantly by amending laws and passing a budget that will make direct alterations to the programs that regulate the state debt and the spending growth. Through the blueprint balance, parliament will be able to concentrate spending on fulfilling its constitutional-defined obligations by eradicating schemes that are outside that scale.
The blueprint equalizes the budget for 2024, and cuts beyond 11.9 trillion dollars from national debt over ten years; this approach soothes the state arrears as a share of the economy over the long-term (Gray, 2018). In the heritage budget, debt to GDP will reduce to 23 % lower than the most recent CBO projections by ...