Opposing view of the original post regarding national debt.
Guided Response: In your response, take the opposing view of the original post regarding national debt. Respond to at least two of your fellow students’ and to your instructor’s posts in a substantive manner and provide information or concepts that they may not have considered. Each response should have a minimum of 100 words. Support your opposing view by using information from the week’s readings. You are encouraged to post your required replies earlier in the week to promote more meaningful and interactive discourse in this discussion forum. Continue to monitor the discussion forum until Day 7 and respond with robust dialogue to anyone who replies to your initial post.
Rebecca Cline
The large and increasing national debt is an issue that we should be concerned about. The United States debt is currently larger than that of the United States economy. The US debt is currently at $28 trillion and growing, that is $85,230 per person in America (What Is the U.S. National Debt Right Now – and Why Is It So High? Peter G. Peterson Foundation, 2021). This number fails to include the unfunded obligations that face the United States government, such as Social Security and Medicare. Both of these obligations have a projected fiscal gap between revenue and spending. According to Boccia (2020) “By 2050, debt borrowed in credit markets is projected to reach 180 percent of gross domestic product (GDP). That’s far higher than the U.S. has ever experienced, and it won’t stop rising there” (para 1). When debt is high, it compromises income growth. The compromised income growth in turn makes all Americans poorer. The two programs that are the most impactful are Social Security and Medicare due to the lack of private pensions, the entitlements continue to grown faster than the ability to finance them. The fiscal condition in the United States is unstable (Boccia, 2020).
John Tamny states that the talk of the budget deficit doesn’t really matter. Tamny states that the although the amount US taxpayers owes has increased, the cost of borrowing has not risen. Tamny (2017) states “While the yield on 10-Year U.S. Treasuries was 10.8 percent in 1980, as of today, the yield has declined to 2.27%” (para. 2). Tamny continues to state that the there is significant productivity and advances in technology that lead to the debt not being concerning. Tamny believes that the advances in technology, mainly automation and robotics diversity, will lead to wealth in return make the national debt look small. Tammy (2017) states that “if federal revenues were the same today as they were in 1980? If so, simple math logic tells us that federal deficits and debt would be quite a bit lower” (para. 10). The focus on debt, to Tamny, gives a false impression that there is a revenue problem with the federal government. Tamny (2017) goes on to say that that there is “a difference between government spending that’s “paid for” versus spending “financed” through borrowing” (para. 14). Tamny sees a distinction between the debt to GDP ration and the deficit shortfalls and interest rates (Tamny, 2015).
Resources:
Boccia, R. (2020, January 31). At $23 Trillion, the U.S. National Debt Already Exceeds the Size of the U.S. Economy. The Heritage Foundation. https://www.heritage.org/debt/commentary/23-trillion-the-us-national-debt-already-exceeds-the-size-the-us-economy.
Tamny, J. (2017, September 24). Ignore The Endless Talk Of Doom, Budget Deficits Really Don\’t Matter. Forbes. https://www.forbes.com/sites/johntamny/2017/09/24/forget-the-protests-of-conservatives-deficits-really-dont-matter/?sh=4e8a498c3707.Tamny, J. (2015). Popular economics: What the Rolling Stones, Downton Abbey, and LeBron James can teach you about economics. Retrieved from https://www.redshelf.comWhat Is the U.S. National Debt Right Now – and Why Is It So High? Peter G. Peterson Foundation. (2021). https://www.pgpf.org/national-debt-clock.
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