Solving the Deficit

            The idea of solving the deficit has been one of much controversy. Both political parties in the United States have vied for the ability to practice their vastly differing solutions; however, little progress has been possible, for every vote for yes is met with a vote for no. In a time of great economic hardship and fiscal crises in foreign countries, the deficit stands as a prominent issue in the minds of many, and neither party is willing to give up.

            'Less is better' seems to be the mantra of the Republican party in terms of the deficit. Instead of creating more ways to give the country the necessary income to balance out the budget, Republicans seek to control the money spent on expensive government programs in order to reduce the large difference between revenue and spending. On the issue of the health care reform, Paul Ryan, a Republican member of the budget committee, created a proposal that "slashes Medicare so deeply that the Democrats' proposal for $500 billion in savings over ten years, which Republicans demonised, looks like child's play" (Economist, 2010). This proposal, suggesting that seniors should be issued vouchers depending on age with how much their health insurance will cost, credibly claims to change the federal budget to be in surplus by 2080. Eliminating the health care completely is not required for a large spending cut, however; some Republicans also believe that increasing the eligibility age for Social Security and Medicare will have a similar, less extreme effect that will end in a decent-sized cut. They are not only looking at health care either, as plans to "limit growth of "discretionary" spending" (Pearlstein, 2010) are being created.

            Democrats believe the opposite. Loath to reduce spending due to the money being necessary for their plethora of programs, their primary objective is increasing revenue until it balances out with the spending. The most prominent idea for doing this is raising taxes on those with more than enough money to spare: the rich. Democrats believe that taking money from those that don't need it will quickly and easily solve the deficit issue, allowing those of lower classes to continue to benefit from the government programs the party created. This is only the start of the solution; in order to get the deficit to reduce to a reasonable point, the government needs to "restore a full measure of economic activity" (Zeese, 2010) to get out of the recession and return to a level of economic stability. With more money granted to the government from taxes on the rich, those with lower incomes will be able to hold onto their money while these taxes bring in the profits for spending needed to jumpstart the economy and cause a surplus of the deficit.

            As has gone on through history, no solution has yet been reached between the two parties as to how to solve the deficit, due to vastly opposing viewpoints. However, with the upcoming elections, the rise of much Republican popularity and dislike of the health care reform may push towards the reduction of spending that they are looking for, as well as the "slash" of the health care.