The Moment of Truth Free Essay Example, 1500 words

Another reasons contributing to the debt crisis is that the federal debt remains unsustainable by itself. The level of unsustainable debt ends up driving up on the interest rates of all borrowers, be it businesses and individuals, thus curtailing on economic growth by crowding out on the private investment. As it becomes more expensive for the entrepreneurs and the businesses into raising capital, participate in innovation and creation of jobs, the rising dept could end up reducing on the per-capita GDP. It thus implies that the share of nations’ economy by each American will increase by as much as 15% come 2035. Such issues of rising debt will also end up hamstringing the government, thus depriving it on the resources required for responding to the expected future crises and depriving on the possibility of investing in other priorities. Deficit spending is commonly in use at responding on the short-term financial ‘emergency’ needs, but as the national debt keeps on growing, the federal government will encounter difficulty in borrowing funds through affordable interest rate, thus preventing on the effectiveness of responding to emergencies. We will write a custom essay sample on The Moment of Truth or any topic specifically for you Only $17.96 $11.86/pageorder now Part 2: Overview of the proposed solutions offered by the authors The main agenda of the proposed solutions is to bring the budget back to the primary balance (balance that include interest costs) by 2015, and be able to meaningfully improve on the long-run fiscal outlook. The recommendations offered by the authors are able to accomplish on these goals, while keeping on mind a number of key principles. Some of the principles include making America better for tomorrow, avoiding any disruption on the fragile economic recovery, protecting on the truly disadvantaged, cutting on spending that are hard to afford, among other principles. In this regard, the authors of this report were able to propose the six-part plan that would help in putting the nation back to the fiscal health, promoting economic growth, and protecting on the vulnerability of America. When taken as a whole, expectations are that the plan will; Be able to achieve nearly a $4 trillion deficit reduction by 2020, which will be more than any other effort in the entire history of the natio n. Be able to reduce on the deficit to 2.3% of the GDP by 2015, which will exceed on the President’s goal of achieving a primary balance of about 3% of the GDP. Be able to sharply reduce on the tax rates, and then abolish the AMT, and achieving cut on the backdoor spending in the tax code.