The United States of America is the global leader in gross domestic product per capita. Our national economy is the benchmark of all others; our dollar is the reference of strength for other currencies. It is therefore a massive shame that we have a substantial deficit in our government’s budget—a decades-long deficit that buried the nation in debt.
Deficit refers to the lack of revenue to cover expenses. In the financial crisis of 2008–2009, the United States’ government recorded a total budget deficit of $1.4 trillion in fiscal year 2009. That’s about 9.9 percent of our gross domestic product (GDP)—the highest since post–WWII ’45. The Obama administration has managed to cut down two-thirds of that deficit. But Obama is stepping down. His programs may become toxic to the economy if not provided with proper infrastructure. In fact, the deficit is forecasted to rise again. The US Congressional Budget Office states, “If current laws governing taxes and spending remain unchanged, the United States will face steadily increasing federal budget deficits and debt over the next 30 years.”
Can the incoming administration handle it, or will the slow years of recovery be all for naught?
Apply Clockable Hours Application Process and Pay System to Fix the Federal Budget Deficit
Investopedia suggests that countries can counter budget deficits by promoting economic growth, reducing government spending, and increasing taxes. By reducing onerous regulations and simplifying tax regimes, a country can improve business confidence, thereby prompting improved economic conditions while increasing treasury inflows from taxes. Reducing government expenditures, including on social programs and defense, and reforming entitlement programs, such as state pensions, can result in less borrowing.
In previous articles, we’ve already talked about how CHAPPS can create jobs, increase employee productivity, and streamline services to make them more efficient.
Our quality of life, our national security, our education system, and our cultural stability all rest on the day-to-day functions of public offices, which are fueled by taxpayer money—our money; thus it is disheartening when the services we receive is lackluster. Lack of funding should never be an excuse.
If the government implements CHAPPS on a national scale, it no longer needs to spend that much money in maintaining these services. With less spending, the budget roof will come down to the level where revenue can catch up, giving Congress more flexibility on adjustments and turning the deficit into a surplus.
Congressional Budget Office. 2009. “Federal Budget Deficit Totals $1.4 Trillion in Fiscal Year 2009.” Accessed October 5, 2016. https://www.cbo.gov/publication/24992.
Congressional Budget Office. 2016. “Updated Budget Projections: 2016 to 2026.” Accessed October 5, 2016. https://www.cbo.gov/publication/51384.
Congressional Budget Office. 2016. “The 2016 Long-Term Budget Outlook.” Accessed October 5, 2016. https://www.cbo.gov/publication/51580.
Investopedia. “Budget Deficit.” Accessed October 5, 2016. http://www.investopedia.com/terms/b/budget-deficit.asp.