The United States’ national debt has been a very popular topic in recent months due to the recent presidential inauguration and the 2017 Budget Projections. The effects of the debt on the country long term are being debated by many, but many see the debt as having a negative impact on the country's economy. The national debt negatively affects the future of the United States’ economy because interest rates will rise, and the Government’s increasing debt payments will crowd out other spending. The solutions to the growing problem are made more difficult by disagreements over whether our debt is manageable. As the United States debt grows, interest rates on both public and private debt will grow. As the U.S. holds onto other countries’ money,
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government currently has is unsustainable, and there are many different solutions to this problem. Peter G. Peterson, an American businessman, and his foundation also believe that the debt is not sustainable. They believe that “Now that the economic recovery is more sure-footed, we have the opportunity to put in place sensible reforms that will put our long-term fiscal trajectory on a sustainable path” (“Top 10”). The Peterson Foundation has come up with a few reform options to deal with the debt. The ultimate goal of these reforms is to decrease the government’s annual deficit. One reform proposal requires strengthening the pay-as-you-go rules. Pay-As-You-Go, also known as PAYGO, were rules originally created in the 1990’s, but were reinstated in early 2007. The rules prevent Congress from passing any legislation that will add to the government’s annual deficit (Aron-Dine and Greenstein). Another proposal is for debt goals. Congress and the President will set short- and long-term goals for the debt, and then policies will be made to help them meet their goal (“Budget Process”). As there is with any issue the nation has, there are people who do not agree with Peterson. Paul Krugman, an American economist, is one of those people; he argues that the U.S. debt is not a bad thing and that paying it off too soon would only negatively affect the country. Krugman states, “Because debt is money we owe to ourselves, it does not directly make the
government currently has is unsustainable, and there are many different solutions to this problem. Peter G. Peterson, an American businessman, and his foundation also believe that the debt is not sustainable. They believe that “Now that the economic recovery is more sure-footed, we have the opportunity to put in place sensible reforms that will put our long-term fiscal trajectory on a sustainable path” (“Top 10”). The Peterson Foundation has come up with a few reform options to deal with the debt. The ultimate goal of these reforms is to decrease the government’s annual deficit. One reform proposal requires strengthening the pay-as-you-go rules. Pay-As-You-Go, also known as PAYGO, were rules originally created in the 1990’s, but were reinstated in early 2007. The rules prevent Congress from passing any legislation that will add to the government’s annual deficit (Aron-Dine and Greenstein). Another proposal is for debt goals. Congress and the President will set short- and long-term goals for the debt, and then policies will be made to help them meet their goal (“Budget Process”). As there is with any issue the nation has, there are people who do not agree with Peterson. Paul Krugman, an American economist, is one of those people; he argues that the U.S. debt is not a bad thing and that paying it off too soon would only negatively affect the country. Krugman states, “Because debt is money we owe to ourselves, it does not directly make the