I sat this weekend and watched a documentary that aired on CNN called I.O.U.S.A. that tells the story of the rapidly growing national debt and its consequences for the U.S. economy, the current, and future generations. It was a shock to realize the immense amount of debt that the US government is carrying. The projected deficit if nothing is done to change the trend was even more absurd; but the national debt and crazy spending is just a reflection of crazy personal spending and personal debts. This documentary was created last year(2009), and you can download a copy of these facts here. While paying this debt may seem insuperable, yet it is smaller than the debt after WWII and the Great Depression as a percentage of GDP. However, during post World War II, people were willing to sacrifice but these days; we have a sense of entitlement!
Watch I.O.U.S.A.: Byte-Sized – The 30-Minute Version
The panel of professionals had some few suggestions on what may help to reduce the skyrocketing debt.
- Taxes are inevitable and will have to be raised.
- Tax cuts previously authorized should be left to expire and not renewed.
- Reform the Social Security- Based on current statistics, social security benefits will not be sustainable in the next twenty years.
- Reduce discretionary spending.
- Personal sacrifice
- Reform other social programs.
Are you playing your part to get out of debt? Share your thoughts.