American Government

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Government Borrowing Money

Ronnell Rivers

POLS210

21 October 2018

AMU

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Government borrowing

Current Issue

Despite the robust economy, the government borrowing rises

First Possible Solution

To address the soaring government borrowing, there should be a reduction in tax cuts in

order to spur economic growth. A vibrant economy will enable investors and business people to

invest more in the economy hence increasing revenue collection in the long run (Palleta &

Werner, 2018). Tax cuts reduce the cost of doing business hence allowing companies and other

business to expand their manufacturing. This, in turn, reduces the prices of products in the

market hence increasing consumer consumption

Second Possible Solution

In addressing soaring debt, the government should look for the best ways of shrinking the

deficit by reducing the borrowing (Becker, 2018). It is crucial to address the gap between the

GDP of the country and the level of the debt so that it will not present problems for the future

generation when paying the debt. The debt should be left at a sustainable level where to will not

put the country under pressure when looking for ways to repay the debt back.

Preferred Solution

The most preferred solution in shrinking the deficit in order to make it sustainable. The

gap between the debt and GDP determines the possibility of the government to continue carrying

the government functions with ease (Barnes & Hicks, 2018). Much borrowing will mean that

most of the revenue collected goes to debt repayment and not in development. If the government

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has maintained development ongoing, the debt level should be considered as this will also not

burden the future generations during the payback period.

Responsibilities of Government

The executive branch is comprised of the white house and different agencies. The white

house manages and oversees the budget. The president should address the gap created by

borrowing. The legislature consists of the Congress and other related departments. It forms the

House of Representatives and the Senate (Barnes & Hicks, 2018). These houses check the

executive on the way money is borrowed and spent. It should be able to monitor the level of

borrowing by the executive. The Judicial branch comprises of the US courts such as the federal

level, state, and the local courts. The Supreme Court of US is the administrative office of the

courts which links all the courts as well as determines fees and statistics of the courts (Palleta &

Werner, 2018). In handling borrowing, the courts should be able to rule on any legislation

concerning borrowing either to bar or stop the executive from excessive borrowing (Barnes &

Hicks, 2018). All the branches of the government should work together in order to ensure that

the government is operating within its means.

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References

Barnes, L., & Hicks, T. (2018). All Keynesian Now? Public Support for Countercyclical

Government Borrowing. doi:10.31235/osf.io/pvdeu

Becker, S. (2018, June 02). LibGuides: *Government Information: Federal: Federal Branches &

Agencies. Retrieved October 21, 2018, from

https://guides.library.oregonstate.edu/c.php?g=285918&p=1905794

Palleta, D., & Werner, E. (2018, September 11). Government borrowing soars despite robust

economy. Retrieved October 21, 2018, from

https://www.washingtonpost.com/business/economy/government-borrowing-soars-despit

e-robust-economy/2018/09/11/09a85554-b5eb-11e8-a7b5-adaaa5b2a57f_story.html?nore

direct=on&utm_term=.6dedb1c29665

.