Strategies for Decreasing National Debt and Deficit Spending
Commentary
What strategies can we implement to reduce debt and eliminate deficit spending across all levels of government? This is an issue demanding immediate bipartisan consensus, as the current path is simply not sustainable. The expansive federal government, along with an excessive number of local and state entities, has developed a tendency to spend significantly more than what is collected in tax revenue.
SAUSD has recently found itself with a staggering $180 million deficit, necessitating layoffs of nearly 300 teachers and staff members. Can the district truly expect to maintain the same funding levels it had six or seven years ago when it has lost 11,000 students? Significant reductions are essential given that the district’s size has decreased by almost 25 percent.
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At the federal level, there are viable approaches to curtail unchecked deficit spending. Similar to other heavily indebted nations, the United States significantly needs a transformative strategy en route to achieving balanced budgets.
First and foremost, the government must commit to ensuring that expenditures do not surpass revenues. This entails a reassessment of several essential agencies to ensure their functions are not duplicated across various departments. Many federal agencies are bogged down by bureaucratic red tape that hinders efficiency.
Next, certain federal departments could be streamlined or entirely abolished. Agencies like Agriculture, Education, Energy, Health and Human Services (HHS), Housing and Urban Development (HUD), and Labor could be transferred to state management where they might be managed more effectively. Additionally, foreign aid should undergo thorough vetting to prevent it from being lost to misuse, fraud, and waste.
The founding fathers intended to constrain federal authority. They believed the primary functions of the federal system should include law enforcement, regulating commerce, managing international relations, and ensuring national security—responsibilities now handled mainly by the Departments of Commerce, Defense, Justice, and State. Other responsibilities were meant to be handled by local or state governments or the private sector.
Third, to address and diminish the national debt, prioritizing deregulation and tax reform is essential. Reducing regulations and providing tax relief for businesses and individuals could spark an economic renaissance that boosts GDP and lowers unemployment. Achieving near-full employment would in turn lessen the demand for social services such as food stamps, subsidized housing, and welfare support.
Fourth, the U.S. should reintroduce tariffs on goods and services, particularly targeting nations that violate established trade practices through dumping of inexpensive products and intellectual property violations. Before 1913, the Internal Revenue Service (IRS) did not exist; government revenue primarily derived from tariffs on imports. While imposing tariffs may elevate prices on specific goods, this could be balanced by lowering costs on others. Moreover, reorienting much of our trade away from China towards countries committed to fair trade principles could shift the U.S. from a trade deficit to a trade surplus.
Lastly, federal strategies could be mirrored at local and state levels to manage debt more effectively. States and local governments facing profound deficits should return to the fundamental missions of governance. For example, California’s expenditures could prioritize firefighting, water management, and public safety over projects like the bullet train, homelessness initiatives, or unregulated immigration services.
Reducing debt, aligning fiscal priorities effectively, and judiciously utilizing taxpayer dollars has the potential to enhance economic stability and bolster national security. It could also save taxpayers hundreds of billions or even trillions of dollars. The moment to act was yesterday.
The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of The Epoch Times.
