The U.S. National Commission on Fiscal Policy and Reform has recommended changes to government expenditures and taxes which they claim would reduce the increase in the national debt between 2012 and 2020 to $4 trillion rather than $8 trillion. What are the commission's 5 recommendations?
16) The U.S. National Commission on Fiscal Policy and Reform has recommended changes to government expenditures and taxes which they claim would reduce the increase in the national debt between 2012 and 2020 to $4 trillion rather than $8 trillion. What are the commission's 5 recommendations?
17) Explain the reason why the debt-to-GDP ratio in the United States is expected to explode between now and the year 2042.
18) For each of the following policy options the government can undertake to make the debt sustainable, explain the economic consequences and the resulting change to potential GDP:
a. increasing seigniorage
b. increasing taxes on wages
c. increasing taxes on capital income
d. decreasing expenditure on government capital goods
e. decreasing expenditure on transfer programs such as Social Security, Medicare, and Medicaid
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