Democrats and Republicans have always had different views on the best approaches to address the budget crisis. The negotiations between republicans and democrats fail to bear fruit due to their contrasting economic ideologies. Democrats believe that raising the debt limit is the best option to address the budget crisis (PBS, 2013). The Republicans are against any move by the government to raise the debt ceiling limit, unless they could extract some price for their support towards the initiative. These glaring differences between the two mainstream parties have prevented Congress from making effective decisions on curbing the budget crisis. The Young Guns were willing to go to any lengths to stop Obama’s remedy towards the budget crisis (PBS, 2013). Both parties appear to be in a constant battle to prove that they can outdo each other. It is often difficult to decide on which party has the best economic philosophies since prior Republican and Democrat presidents have both dealt with recessions.
America controls the strongest and most influential economy in the world; however, the current debt stands at more than $22 trillion affecting the budget on an annual basis (CED, 2018). If the debt is not addressed it will lead to a global crisis. The first mitigation is raising the revenue. It is directly proportional to raising taxes. A variety of the taxes that should be targeted include income tax, estate tax, corporate tax, gasoline and anti-abuse tax, increasing these taxes without causing harm to the economy can lead to a rise in government revenue, paying off some of the debt. Cutting spending is unavoidable in trying to address the budget crisis. The US spent $4.407 trillion in the fiscal year of 2019 (CED, 2018). The government should cut the spending to equal the expected revenue. The target sectors for funding cuts should include defense, healthcare, transport, welfare, and pensions.
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References
Debt 101 .(2018, May 23). The Committee for Economic Development (CED). Retrieved March 18, 2020 from, https://www.ced.org/reports/how-do-we-fix-the-debt
Frontline: Cliffhanger. (2013, December 02). Public Broadcasting Service (PBS) .Retrieved March 18, 2020 from, https://www.pbs.org/video/frontline-cliffhanger/
