Three major political approaches to fixing the problem with the national debt - Research Paper Example

During a meeting in Cleveland, President Obama proposed a tax breaks and, directed corporate to eliminate one hundred percent of their ventures in industries and machineries. This move was further supported by Dave, a senior member of the Republican Party. In addition, a senior director of tax at Cato institute Edward Chris supported the three positions by arguing that the proposed approaches of fixing the problem with the national debt will help to revive the U.S economy. Mann Thomas a political scientist also advocated for the three proposed approaches by president Obama.

Thomas asserted that the three approaches will help to promote economic growth tremendously. Additionally, the minority Leader Boehner John R-Ohio supported president Osama’s proposal to cut down budget and increase tax breaks (Raum, paras.1-5). The three positions have further been substantiated by the law whereby, the law provides corporate a chance to obtain fifty percent of the cost up front and the outstanding balance to be settled within twenty years. Senior political official substantiated the move to implement tax breaks by proposing its benefits to the individual and to the entire economy at large.

Some of the benefits include increase both individual and corporate investments which intern will lead to employments creation. The three proposals will further help to promote economic growth and expansion of small business (Raum, paras.3-7). ii) Give the pro’s and con’s of each approach. The pro’s of the first approach which involves cutting down government expenditures and give more tax breaks and incentives to small and big business include: it will help to eliminate government deficit and foreign debts because this approach helps at ensuring that the their readily available resources to be utilize productively.

This approach further provides members of the public especially low income earners and middle class families with an opportunity to improve their standards of leaving. In addition, this approach will help to reduce the gap between the rich and the poor as well as promote growth of small medium enterprises (Congressional Quarterly Weekly Report, p.158). On the contrary, the first approach tends to have some con’s. Among the con’s of this approach include: increase in negative externalities such as pollution because cutting down government expenditure limits the availability of funds to provide social services to the public.

Reduction in government spending will causes a reduction in aggregate demand. This further leads to a reduction in economic activities as well as increase in unemployment problems. In addition, this approach discourages income distribution among members of the public. The approach will further affect those people who rely on social welfare benefits because they would not receive as much as they had expected to receive. This will further affect their budget and speeding (Congressional Quarterly Weekly Report, p.158). The second approach for fixing the problems with the National budget involves putting more emphasize on our exports by lowering our dollar value or forcing our trade partners – China – to regulate more accurately its currency.

This approach tends to have the following pro’