Running head: DOMESTIC POLICY ASSIGNMENT 1

Domestic policy Assignment

Name

Institution
DOMESTIC POLICY ASSIGNMENT 2

Domestic Policy Assignment

The historical average of the American debt is almost 40 percent share of the economy

which means that balancing of the debts is necessary in order to achieve fiscal health. Balancing

of the debts is very important given the fact that debts are the measure of the capacity of the

economy and economic growth. However, in order to balance the budget there are major

expenditure in federal budget which should be considered like entitlement spending and military

spending. Generally, an attempt to balance the budget without touching the entitlements or the

military would imply a total elimination of the rest of the spending to the federal budget. Some

of the ways to balance the federal budget would be reformation of policies in the national

security like adjustment of the retirement age and cutting down the cost of overseas military

bases. The federal budget can also be balanced by making some strategic changes in various

aspects of the society like ending wars on drugs and reducing child labor laws.

Generally, the high debts are as a result of the government high expenditure therefore the

best way to deal with the high debt is for the congress to set a debt limit and by this means the

congress will be limiting the much debts the government takes such that when the government

reaches the debt limit, the treasury department is no longer allowed to borrow money to fund

government operations. The aspect of setting a debt limit would also enlighten the

parliamentarians that they need to live up to a sustainable form of expenditure by enacting

budget reforms. Given the fact that the $20 trillion debt is an economic threat, the legislators

need to reform the privileges of federal expenditure by enforcing a debt limit so as to put the

budget on balance to be able to control the national debt.