Record level national debt

(Ref. 312)
Problem Components
Policy issue area: Economics
Policy issue: Taxing
Description: The Federal debt is reaching $5.5 trillion, and is continuing its unprecedented increase.
Symptoms: Interest payments on the debt will soar to $300 billion annually; the national debt now equals 50% of the national output (GNP); growing burden of debt may drain the nation's economic vitality.
Causes: Supply-side economic policies of the Reagan/Bush administration; substantial tax cuts combined with major increases in defense spending.
Cost of problem: -
Solution Components
Resources: Universities and research institutes; business and industry; government policy makers.
Goal: Manage, and gradually reduce the Federal debt.
Program area: Financial resources development
Program-remedy: 1. Reduce annual deficits through appropriate taxing and spending policies
2. Strong economic development and growth, to reduce share of deficit relative to GNP
3. Periodic reevaluation of programs to determine effectiveness
4. Implementation of the U.S. Grand Moral Strategy, to shift military expenditures to deficit reduction.
Program-prevent: National economic development and growth policy coordinated with monetary and fiscal policies.
Cost of program: -
Beneficiaries: Taxpayers; business and industry.

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