1. If a larger corporation goes out of business then he Government should subsidize them to an extent. If a corporation is all of a sudden going under then the Government should subsidize them because it was a random thing that could be because of a tax or economic factor that my be caused by the Government or just a random turn of the economy then it may be okay to subsidize them. But if a Corporation goes under all of its own accord as a few of the large car companies have done in the last few years the government is in no way responsible to that companies failure. And being in no way at fault for what happened to a company, then the government should not subsidize them. By subsidizing large companies the Government ends up hurting its self and smaller companies. In a market economy like we are supposed to have, there is supposed to be an ebb and flow, meaning that in order to gain overall economic growth in a market companies must come and go. So in order to the economy to grow we must end up losing some companies to that other companies then have an opportunity to grow and fill the void left by the dying Corporation. By intervening the Government is hurting its self by spending its funds in ways it really shouldn't be in amounts that are too large to justify, and it is hurting smaller businesses by taking away their possible opportunities. Doing this is leaving the US in an economic situation where there is limited growth due to how controlled the market is due to the Governments control.
2. I support the federal revenue and expenditures for the last fiscal year for the portion that goes to our defense department and resources. But the ways I criticize the federal revenues and expenditures vastly out number the ways I support it. For one the amount of revenue that comes from income taxes is way too high, the federal government should implement a different form of taxation or a different mixture of taxes to achieve just as much revenue or even more. The amount that the Government is relying upon the individual is absolutely ridiculous considering all the other ways it could gain revenue by focusing instead upon maybe a few different areas to gain as much revenue. Secondly, the amount of revenue that comes for paying social security is more then we are actually spending on social security in the last fiscal year. Where have those extra funds gone? Also the fact the Social Security and Medicare are such a large part of government expenditures is a big problem for me. Both programs were put in place in a different time than now, people were living shorter periods of time and there wasn't the large population of people that we now have relying on the programs as we do now. Now that the baby boomers are reaching an age of retirement and the age that they qualify for these programs younger people are getting stuck with the bill. The fact is Medicare and Social Security need to be reformed because we are paying more to people who are still capable of supporting themselves. Lastly the way that both expenditures and revenues are decided needs to be dealt with, in light of the fiscal cliff and our debt we face our government needs to take a step back a realize whats happening and do something about it rather then putting it off and taxing more and then spending more than it brings in.
3.In keeping with my manifesto and after watching the movie I.O.U.S.A. explain the debt crisis faced by our nation, I propose the following solution that the government tighten their belt and make the hard decisions regarding our expenditures and means of gaining revenue. The government rather than pull a move like creating another fiscal cliff, needs to be able to get past their difference in political views and cooperate. Cooperate in a way that law makers will put the good our our country before their individual political believes and come to some sort of agreement. Once lawmakers can actually talk to each other they need to be able to look at tax codes, revenue, and expenditures we are facing and find ways to effectively tax the population bringing in revenue, at a rate and way that doesn't upset the people too much. But they would have to keep in mind that this should be a plan that should help us out of debt in the next five to ten years not just one year. Once they settle on a way of collecting revenue law makers would have to reform expenditures, specifically Social Security and Medicare, reforming who qualifies and how much should be spend in each program. Both programs should apply to people older than it does now because people are living longer and are able to work for longer than they used to.
All the while the government is doing this they must then keep in mind that they need to formulate a plan that would help to get rid of the national debt in the next decade. Reforming parts of the government is only a part of the plan, we cannot go through another fiscal cliff and put off the hard decisions. But we do have to keep in mind that we need to have this plan be flexible with the economy to refrain from having any form of recession. It will be hard and near impossible but if we don't face this problem head on instead of raising the debt ceiling we are in big trouble. It's going to suck but honestly I think that the best way to deal with this is facing it head on.
