6-2 Simulation Discussion Fiscal Policy
Because there were so many various factors that might be changed to help the US with its
debt problem, I found this simulation to be entertaining and informative. By effectively reducing
the predicted short- and long-term debt, I was able to achieve the debt reduction targets of 60%
by 2050 and 90% by 2032. Throughout the simulation, my goal was to distribute the savings
across an assortment of financial areas while primarily raising taxes on the extremely rich and
conservation initiatives. In addition, I intended to have as minimal of an impact as possible on
common people while planning for the future. For instance, I opted to increase alcohol and
cigarette taxes, establish a taxable event, and levy on carbon emissions, all while increasing
spending on K-12 education and providing complimentary community college and universal
pre-kindergarten.
I don't think the size of the budget deficit will significantly hinder significant market
development. Given that there shouldn't be major issues if the government makes the right
spending selections and creates capital resources that can boost national income due to the
multiplier method. Additionally, if the return on investment outweighs the cost of the interest
