By Indri Schaelicke | United States
The United States national debt currently stands at over $21 trillion. Such a number seemed improbable just 5 years ago. Despite such a clear lack of funds, Congress merely continues to create more government programs. This lack of fiscal responsibility will only lead the US into serious trouble in the future. With federal spending only increasing, it is now more than ever imperative that our congressmen step back and look at the negative consequences for long term debt.
Maintaining a large debt for a long period of time has several disastrous effects. The greatest danger, naturally, comes during a recession. In this case, foreign governments with U.S. Treasury bonds may not trust the U.S. to repay them. Thus, a foreign state may demand its loaned money back, which the United States may not be able to pay. The U.S.’s inability to pay back the amount could spark tensions, tariffs, embargoes, or even war.
Rising debt also means that government will raise taxes more to cover the gap between revenue and expenses. By taking steps to fix the issue now, Congress can balance the budget and keep taxes lower. It is time for Congress to become fiscally responsible and limit federal spending. The process is not difficult, and through these four steps, Congress can be back on track towards federal spending sanity.
1. Close Overseas Military Bases
The US operates over 800 military bases around the world. Only 11 other nations have foreign bases, combining for a total of 70. The sheer number of bases is a clear indicator of the U.S.’s global policeman approach to foreign policy. If the government is to exist, it must focus on protecting the life, liberty, and property of its own citizens. 800 foreign bases are in no way essential to do this.
2. Cut Programs with Wasted Federal Spending
The United States, over the past century, has sought to maintain peace and stability around the world by solving regional conflict. However, as a result, the government has created countless programs that seek to promote American values in areas they are least likely to work. Ultimately, these programs are wasteful and unnecessary.
For example, the U.S. government built a natural gas station in Afghanistan for $43 million dollars. Afghans have no way of using this, because they do not have cars that use natural gas for fuel. Even if they did, the vast majority of them would not have the money to buy or use them. This project was illogical in design, but sadly it is only one of many. Cutting down on these ridiculous programs should gain bipartisan support. It also should not be very hard to implement. Thus, it is a great way to rein in spending.
3. Abolish the Post Office
The Post Office system is an incredibly inefficient quasi-business run by the U.S. government. This past year, USPS reported a $2.7 billion loss, while in the fiscal year of 2017, UPS, a private company, had a revenue of over $65.8 billion. These statistics show us that, in this industry at least, the private sector is much more able than the state. The reason for this, of course, is that a private company has an incentive to make money.
A government-run business like the Post Office can never shut down due to bankruptcy. They can simply get more money from the state, increasing debt. On the other hand, if a private business remains unprofitable for long enough, they will go bankrupt. This “drive to survive” of the private sector also leads to innovation and improvements. This keeps a business competitive in its field, as opposed to a state program, which has no incentive to improve. Private companies must constantly improve to retain their customers, while government corporations will always be around no matter the financial loss they are suffering. It’s time to abolish the Post Office and allow more efficient companies to take its place.
4. End Foreign Aid Programs
Foreign aid programs are yet another example of policies that seek to benefit other states at the expense of our own. The U.S. government’s primary concern should be with the well being of its own citizens, and not with that of other nations’.
Tragically, foreign aid programs often fail to work. Many times, regional warlords obtain the money as soon as the U.S. drops it off. Aid rarely reaches those that need it the most, and in fact often helps those that oppress the needy. Private charity must replace foreign aid. Knowing the money they have is both precious and finite, a private charity often makes a greater effort to ensure that aid ends up in the right hands.
The U.S. may achieve all of these proposed solutions to rampant government spending quite easily. As all are common sense methods, they all, save the last, should receive bipartisan support. They also would not require a lot of legislation to implement. The U.S. must make a serious effort to reign in federal spending to avoid a debt crisis, and these four solutions are a great place to start.
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