The Student News Site of Appalachian State University

The Appalachian

The Student News Site of Appalachian State University

The Appalachian

The Student News Site of Appalachian State University

The Appalachian

Newsletter Signup

Get our news delivered straight to your inbox every week.

* indicates required

PCP: Balanced budget needed to help US economy

Tyler Spaugh
Paul Heckert

This is article is part of a point/counterpoint. You can read the counterpoint here.


Tyler SpaughI’ve never taken out a loan in my life, but I’m already in $53,000 of debt.

Thanks to excess government spending, every man, woman and child in the United States currently has a share of $53,000 of our $16 trillion national debt, according to the U.S. Treasury.

If we wanted to pay off our national debt today, then you, me and every other legal citizen in this country would have to pay the government $53,000. But by tomorrow, our government would already have a new national debt of almost $3 billion.

The United States has the world’s largest economy, larger than the second, China, and third, Japan, largest economies combined. Yet we spend $1 trillion more than we take in in tax revenue.

Our government had annual tax revenue of $2.5 trillion last year. That’s greater than or equal to the Gross Domestic Product of every other single nation in the world except China, Japan, Germany and France.

The reason that the U.S. can rack up so much debt is because the U.S. dollar is the reserve currency of the world, basically the world’s most desirable currency.
As long as we issue debt in dollars, everything will be fine, because we’re the ones who print the dollars. This means that we always have the ability to pay off our debts, theoretically.

The problem is that the dollar is very close to losing its status as the world’s reserve currency, mainly because of our debt. If this happens, nations won’t want their debts to be paid in U.S. dollars and we’ll lose the theoretical ability to pay off our debts.

This will cause a flood of dollars held by foreign countries to pour back into the U.S., as these nations demand their debts to be paid in the world’s new reserve currency.

The flow of so many dollars into the U.S. system will cause the value of one dollar to plummet.

There is a way to remedy this problem, and it starts with balancing the budget. Before we can begin to pay off our debts, we need to stop the flood of new debt coming in at about $1 trillion a year.

Balancing the budget within the next 10 years is a good place to start. This will require a combination of slashing foreign aid and pork barrel spending, reforming Medicaid and Social Security, making small defense cuts and growing the economy through tax cuts.

 

Spaugh, a freshman accounting major from Winston-Salem, is an opinion writer.

Leave a Comment
Donate to The Appalachian
$1271
$5000
Contributed
Our Goal

We hope you appreciate this article! Before you move on, our student staff wanted to ask if you would consider supporting The Appalachian's award-winning journalism. We are celebrating our 90th anniversary of The Appalachian in 2024!

We receive funding from the university, which helps us to compensate our students for the work they do for The Appalachian. However, the bulk of our operational expenses — from printing and website hosting to training and entering our work into competitions — is dependent upon advertising revenue and donations. We cannot exist without the financial and educational support of our fellow departments on campus, our local and regional businesses, and donations of money and time from alumni, parents, subscribers and friends.

Our journalism is produced to serve the public interest, both on campus and within the community. From anywhere in the world, readers can access our paywall-free journalism, through our website, through our email newsletter, and through our social media channels. Our supporters help to keep us editorially independent, user-friendly, and accessible to everyone.

If you can, please consider supporting us with a financial gift from $10. We appreciate your consideration and support of student journalism at Appalachian State University. If you prefer to make a tax-deductible donation, or if you would prefer to make a recurring monthly gift, please give to The Appalachian Student News Fund through the university here: https://securelb.imodules.com/s/1727/cg20/form.aspx?sid=1727&gid=2&pgid=392&cid=1011&dids=418.15&bledit=1&sort=1.

Donate to The Appalachian
$1271
$5000
Contributed
Our Goal

Comments (0)

All The Appalachian Picks Reader Picks Sort: Newest

Your email address will not be published. Required fields are marked *