Analyzing the Federal Budget: Debt, Deficits, and Economic Strategies

This report delves into the critical issues of national debt and budget deficits within the American economy. It emphasizes the importance of balancing the federal budget and addresses the challenges posed by high public expenditure, particularly in the context of social programs like Social Security, Medicare, and Medicaid. The report explores the need for entitlement reform, suggesting strategies such as transitioning Social Security to private retirement accounts, implementing a healthcare voucher system for Medicare, and increasing eligibility requirements for Medicaid. The author advocates for phasing out these programs over time to ensure the nation's fiscal health. The report highlights the need for difficult decisions regarding entitlement programs and offers potential solutions to address the economic challenges associated with the federal budget.

BALANCING THE FEDERAL BUDGET- NATIONAL DEBTS AND OTHER
DILEMMAS
Most Americans are concerned about the cutting budget deficits and the fairly large, growing
national debt. Such problems, however, are signs of a crisis. They themselves are not the
challenge.
It is too much public expenditure that is the issue. Since FDR was elected to office,
Americans have enjoyed high public expenditure and enforced its wide range social programs
that were prefaced by other leaders and administrations with extended or new welfare
programs to win votes.
Often people enjoyed the effects of higher spending but they don't like paying for it. The truth
is that the American widespread public elite needs to get along with the system and
understand that they have to compensate for the state that they have before they talk about
making new initiatives like "free" healthcare, university education, and other such
programmes.
The running of deficits is okay as long as an individual maintain the public debt at a stable
point. For instance, if the U.S. operates a shortfall annually but stagnates the debt at half of
GDP, it would be appropriate and not put the country on a road to financial distress. Most
federal budgets are mandatory expenditures, which is synonym for welfare programs. Social
Security, Medicare, and Medicaid welfare programs are few examples. The uncontrolled
growth in expenditure of those services and their systemic flaws are fully accountable for the
ginormous shortfalls of today and tomorrow. Social security can be transitioned to private
retirement accounts over a couple of decades and by increasing the age of retirement.
Medicare can be transitioned to a healthcare voucher system for senior citizens. Also
medicaid’s eligibility requirements should increase. Freeze spending and switch to block
grant system. The reality is that we have to make tough decisions about entitlements, but
that's not what anyone wants. When we carry out structural entitlement reform, we will save
certain elements of those services while strengthening the nation's fiscal health. Personally, I
am in support of phasing out Medicare and Social Security over 20–30 years and doing the
same with Medicaid for 15 years or so.