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Grace Nelson
Mrs. Hale
AP Econ
11/18/15
Econ Debt Paper
For the 2015 year, the Federal government allotted 3.8 trillion dollars to different
programs(Federal Spending). Many of these programs receive an excessive amount, which
definitely contributes to Americas national debt problem. The biggest problems economists are
trying to solve is how to turn the debt clock in the opposite direction; to get America back to a
point of not owing money to multiple countries. The biggest thing we could do to at least cut the
rate of our growing debt is to decrease spending on Social Security, and defense programs, as
well as creating an income tax rate for those earning more than $500,000 a year.
For the fiscal 2015 year, spending on social security has reached an outrageous cost of
1.28 trillion dollars(Federal Spending). It is my biggest belief that everyone should research and
should commit to some sort of retirement plan, where they can put away their own money to be
used once they reach retirement age. This way they do not have to be dependent on the
government, and that money can go somewhere else. There isnt enough money to fund the
growing number of elders in America. With the baby boomers of the 1950s finally hitting the age
of receiving these retirement benefits, more and more money is being given to them. Generation
X is an even larger crowd, and larger than that, the millennial generation. America just does not
have the funds to sustain that many old people. If we ever want the hope of bettering the
younger generations, we have to create a new system where old people are not dependent on
the government for money. Start with a requirement for some sort of retirement plan that people
can put away their own money for financial uses later on in life. Start to decrease the
dependence of money coming in from the government, and eventually bring it to a point where it

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should only be used for those with disabilities who have not have the opportunity to raise funds
for a retirement plan.
Another cut we need to be making is the amount of money spent on our military.
Currently, we spend more money on our military than any other country in the world. While I
understand that we do have a role as a military leader, the amount of money that goes into it is
excessive. Much of the equipment the money is spent on becomes outdated too quickly and
goes to waste. The department of defense has destroyed at least a billion dollars of excess
ammunition, not to mention many other times when money has been wasted on equipment that
is built in excess and no longer up to date, and therefore no longer usable(Federal Spending by
the Numbers). Consider putting that money into education, putting it into science. America could
be creating future scientists that could create more effective and cheaper military strategies.
That way less money will have to be used in the military overall, but we can still be the military
leader expects us to be.
The biggest thing we can do is set an income tax rate for those earning more than
$500,000 a year. They have the least to lose on an income tax, so its beneficial to everyone
that they be required to pay one. Not much of their lifestyle would have to change even with a
high income tax. They are earning enough money throughout the year to still sustain
themselves and then some. It would not only be beneficial to raise their income tax, but to lower
the income tax of those earning less than $500,000 a year. That way they could focus on putting
more of their money back into the economy.
There are many things that could be done to fix the debt problem in America. Some of
the biggest things that could be done include lowering the budget of Social Security and the
military budget, and creating an income tax for those making more than $500,000. These are
just some suggestions, but many other things could be done to lessen the burden that our debt
is holding over us.

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Work Cited

"Federal Spending by the Numbers, 2014: Government Spending Trends in Graphics, Tables,
and Key Points (Including 51 Examples of Government Waste)." The Heritage Foundation.
N.p., n.d. Web. 15 Nov. 2015. <http://www.heritage.org/research/reports/2014/12/federalspending-by-the-numbers-2014>.
"Federal Spending: Where Does the Money Go." National Priorities Project. N.p., n.d. Web. 15
Nov. 2015. <https://www.nationalpriorities.org/budget-basics/federal-budget101/spending/>.