Sample Term Paper on Starve the beast”

 

Ten Trillion and Counting

“Starve the beast” approach means that by cutting taxes it will push the government agencies to reduce spending maintaining national deficit. Starve the beast approach was common in the Bush administration that was used to lower the taxes in order to achieve its political promises. However, the approach was only theoretical as the government was continuing borrowing and the U.S economy was entering into a recession. The approach was only benefiting the rich by reducing their taxes while increasing the overall national debt. It is unlikely that by cutting taxes the level of government would reduce, since the government programs must be carried out as planned. As reflected in the film, the approach would not accomplish its objectives, the national debt kept on accumulating. The government did not have the funds to pay for its programs such as the war in Iraq (Ten Trillion and Counting 21). The past implications of starve the beast approach have created the current budgetary problems. The idea was supported by the republications through irresponsible tax cutting increasing the levels of government spending and national deficit. Therefore, starve the beast approach was an irresponsible political s ideas that would hurt the U.S economy in the future by increasing the level of government borrowing and spending.

 

When George H.W. Bush entered into the office, the taxes were used in reducing the level of national budget deficit.  In many occasions, Bush was not able to make progress in his bid to lower taxes in the senate that was controlled by the democrats. However, he was able to compromise the congressional democrats to lower some taxes. Later Bush was forced to raise the taxes in order to cover for the looming national debt.  This gave his political competitor a Democratic nominee Clinton a chance to illustrate his untrustworthiness.  This led to Bush losing his position for a second term in the U.S presidency.  George H.W. Bush was unable to keep his promises due to the increasing nation deficit that made it unable to maintain the country’s economy in terms of providing medical care. With the programs such Medicare, defense mater and social security, Bush later made a statement for mandatory program reforms and tax revenue increases that indicated his failure of keep his promise of instituting new taxes. Therefore, the looming expenses in terms of Medicare and defense among others made it difficult for Bush to keep his promise due to the demand for additional tax revenues to support the government spending.

The Medicare and social security is a popular issue in the political campaigns in the United States. Bush administration pushed the Medicare to cover the prescription drugs in the U.S economy forgetting the costs involved.  The policy of pay as you go procedure established earlier was able to support the medical expenses. However, the Bush Administration did not have procedures to support the Medicare and social security expenses in the country. This led to unfunded expenses in the U.S economy as many people were qualifying for Medicare program.  As President Obama inherited the U.S economy, there was a serious economic crisis in the country (Bartlett 10). In most occasions, the previous presidents promised to provide free Medicare and social security services to the aging people in the society without understanding the real economic effects they had on the economy.  The nature of Medicare and social security expenses is that they keep on growing raising the government spending and demand for more income.  This causes the government to borrow externally in order to maintain the Medicare and social security programs.  Such implications have made it difficult for politicians to promise any real cuts in the taxes as Medicare and social security requires close to 30 per cent of the national budget.  Politically, the reason makes it difficult to maintain real cults to the Medicare and social security in the country.

Considering the current national debt of $17 trillion, the U.S government should have to take better federal and fiscal precautions.  There is not a likelihood of reducing the national budget in the near future. First, I think there should be an increase in the level of taxes in the U.S economy. An increase of taxes will give the government adequate income to spend in its development and growth programs. The growing costs in Medicare and social security should be dealt with in the near future. Close to 20.24 per cent of the national budget pays for Medicare and social security. It has been projected that in the near future the level of costs to Medicare and social security would increase (Mitchell 23). The health care reform programs by president Obama were appropriate in dealing with the increased rate of Medicare expenses. To deal with the national debt, the U.S economy will have to raise taxes to maintain the stability of the economy. If the U.S government is likely to resolve the national debt crisis, it has to undertaken a series of economic reforms such as increase tax revenue policies, health care reforms and investment incentives in the economy. Such programs would have a significant impact on the economic elements in the country.

Works Cited

Bartlett Bruce.  Tax Cuts and ‘Starving The Beast.”Forbes. 5 July 2010. Web. <http://www.forbes.com/2010/05/06/tax-cuts-republicans-starve-the-beast-columnists-bruce-bartlett.html>.

Mitchell, J. Daniel. Do Tax Cuts “Starve the Beast”? Townhall Finance.8 Jan. 2013. Web. <http://finance.townhall.com/columnists/danieljmitchell/2013/01/08/do-tax-cuts-starve-the-beast-n1483297/page/full>.

“Ten Trillion and Counting.” Frontline. 24 Mar. 2009. Web. <http://www.pbs.org/wgbh/pages/frontline/tentrillion/view/?utm_campaign=viewpage&utm_medium=grid&utm_source=grid.>.