ECO 212 Week 5 DQ 2 - 7531

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Should the government balance its budget? If you think it should, what steps do you suggest that it take in order to balance its budget? What would be the affect on you if it takes steps to balance its budget, or what would be the affect on you if it does not?

In my opinion the government should balance the budget because it is much better to be debt free where the revenue from taxes can be used for the betterment of the country instead of for paying off debt. The steps that I would take would be to cut social programs and financial aid to foreign countries followed by a reduction in taxes to promote economic growth. The amount of revenue should increase with the increase in economic growth. Raising taxes in the current economical situation that the country is in would be detrimental to the country. Social programs and financial aid to foreign countries could resume once thee debt is repaid and the economy is back on its feet. I believe the reduction of taxes will promote an increase in spending that will in turn generate more tax revenue in the long run. The impact to me would be a loss or reduction in social programs but it would also mean an increase in income from the reduction in taxes.


Solution Description

Should the government balance its budget? If you think it should, what steps do you suggest that it take in order to balance its budget? What would be the affect on you if it takes steps to balance its budget, or what would be the affect on you if it does not?