On the recordFebruary 9, 2010
recent warnings from Moody's that the United States will have to begin addressing our debt in order to avoid downgrading our triple-A bond rating mean that we have to get serious about doing something about the latest deficit and debt projections. The President's new budget proposal estimates that the Federal deficit for fiscal year 2010 will be roughly $1.6 trillion, the largest in American history. It also projects that the deficit we will accumulate over the next decade will increase the U.S. national debt by $8.5 trillion. By the year to 2020, our total public debt will have surpassed $18 trillion and will make up an astounding 77 percent of gross domestic product. We all agree that this debt poses a major threat to America's future prosperity, and we all agree that slashing debt should be a top national priority. How can we do it? There are four principal ways to reduce government debt: No. 1, inflate the dollar; No. 2, raise taxes; No. 3, cut spending; and No. 4, increase economic growth.
