Commentary on Ten Trillion and Counting
Commentary on “Ten Trillion and Counting” The video is a well demonstration of debt issues that the U. S. government faces. It starts with the tough economic condition that Obama inherited from Bush. Then, it talks about Bush’s centerpiece economic agenda: cut taxes, as well as the way Bush always put politics ahead of economics. After a serious of expenses related to two big wars; two enormous tax cuts; and a variety of new entitlement program signed by Bush had been spent, the economic began to go down.
He not only squandered the entire budget surplus he had inherited, but started to confronting a stubborn recession and a steadily escalating budget deficit. Next, the video shows the bitterly partisan fight over Obama’s expensive economic recovery plan. The Republicans worried about if the plan goes well, they will get no credits for anything they have done. So they strongly disagree with this huge amount of recovery expenses. The main issue regarding of this plan is about reform healthcare in order to save money in the long run.
However, it is difficult to persuade interest groups and politicians who have been battling over healthcare for a long time. Besides, it is especially tough to talk to Americans about the government are going to spend less on benefits in a recession time. In the end, this video talks about Obama’s budget, and the rigorous debt deficit condition that the U. S. is going through. The reason I think the “Ten Trillion and Counting” is a well explanation of the debt deficit is because I learned a lot from this video. Before I watched this video I have no idea about the serious debt deficit problem that the U.
S. is facing right now. The only thing I realized from my personal experience is that the U. S. government has relaxed the policy regarding to the threshold of international student. Several years ago, it is not easy for Chinese student to go abroad. Which reflects that the U. S. government really wants to stimulate the economy by increase more demand. International student is a good resource of money. Another “interesting thing” I found in my daily life is that not only numerous retailers put advertisement like “buy 2 get 2 free,” some luxury brand starts to go on sale as well.
It is rarely to see decades ago for a brand like Burberry put promotion in front of its showcase. From this perspective, people’s buying power has decreased sharply. Which results in less investments and staffs cut-off made by companies. In addition, a really serious recession was already happened. The stock market collapse, the banking system is imploded. Although keep borrowing from foreign countries is a way to buffer these problems, it is not a permanent way to solve the economy. So the U. S.
Government needs to take some actions to decrease debt deficit. According to the video, there are two ways to reduce deficit, either by higher taxes or lower benefits. Today, forty percent of budget pays for Medicare, Medicaid and Social Security. However, the first baby boomer is getting retired sooner and they are claiming early retirement for social security. Moreover, as they grow order, they will make claims on Medicare. The U. S. government cannot afford these promises made before, especially in this kind of terrible economic downturn conditions.
The Obama’s administration tries to bring deficit down by reforming healthcare in order to save money in the long run. In my opinion, the recovery plan needs to have a try. As Obama said: “ the most important things we can do for our budget crisis right now is to make sure the economy does not continue to tank. And that is why passing the economic recovery plan is the right thing to do. Even though it is expensive. ” In the short run, the debt deficit may tend to be bigger than Bush’s time. But after the healthcare has been taken, the economy will benefits in the long run.