Question

please respond to discussion comment: Great post. I agree with your statement that the US debt has grown significantly, and still, it is going up constantly. As you mentioned, liabilities could be $70 trillion, which such a colossus amount will take generations to repay the loan. U.S.debt is the total federal financial obligation owed to the public and intragovernmental departments. All presidents make taxes are their main agenda to get in power and have been borrowing from Social Security; it is one of the United States’ largest debt holders. The government's biggest challenge is not cutting down on spending, and the easiest approach is to keep on borrowing. It is alarming, and if we look at some of the countries in Europe who followed a similar approach of borrowing are on the verge of bankruptcy, a good example is Greece. If steps are not taken, the U.S.'s ability to pay back its debt will come into question, affecting the overall economy.

Answer 1

Borrowing in huge amount has landed the US in debt. The amount of debt is increasing at large rate and it is now becoming alarming.

Cutting down on expenditure is not the solution to repay the debt because then the economic activities will slow down and the growth will be adversely affected.

One way with which the United States can repay its debt and that too by reducing its expenditure, is to invest in activities and technology which aim at improving the productivity of the economy. With the improving productivity, the GDP and income level will go up and will enable US to repay its debt.

Expenditure and investment at the right place is the key to reduce debts.