2017
Lv 7
2017 asked in Politics & GovernmentGovernment · 9 years ago

How does a country get out of debt? Borrow more money or raise taxes?

Update:

borrowing money just get more debt

the only way for a government to get out of debt is by raising taxes.

9 Answers

Relevance
  • 9 years ago
    Favorite Answer

    I think a country can only get out of debt (across the board) if it's possible to do it WITHOUT these things. If they stop can borrowing and maintain or increase exports it can be done.

    Also, if an incoming government...especially a revolutionary one the creates a full regime change like the Soviet Union did...can disown predecessors debts.

    • Login to reply the answers
  • 9 years ago

    They might monetize the debt which is when the FED buys our own debt in the from of bonds and then prints more money which DEVALUES the dollar making anything you save or earn instantly be worth less while necessaties like food skyrocket. You have to DRASTICALLY slash spending, stop raising the debt ceiling...but no matter what inflation happens in order to pay off the debt because at the point we are at right now higher taxes won't even cover the interest into the next 30 years.

    • Login to reply the answers
  • 9 years ago

    REALLY? Those are the ONLY TWO CHOICES??? SERIOUSLY???

    So ... if we cut spending, that wouldn't help? If we cut the number of entitlement programs and the number of people on them, THAT wouldn't help?

    If we made the climate better for business to grow, invest, and hire, wouldn't that result in more corporate earnings (and more corporate TAXES)? Wouldn't that result in more people making more money; therefore, paying more taxes too? (Without RAISING taxes, but simply by creating an environment where more people pay them.)

    And so on.

    I just stare at your question! You gave me the option of picking "borrow more"--which by definition is GOING INTO DEBT--as a way of getting out of debt! That's like finding yourself in a deep hole and deciding it's best to start digging. WHAT?!?!?!?!?!

    • Login to reply the answers
  • 9 years ago

    borrow money, raise taxes, make income smaller. avoid giving raises for a while. and in some countries they even made peopel choose between their pensions and their current jobs.

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • karl k
    Lv 6
    9 years ago

    lower taxes. that will put people to work and increase revenues as more people will be paying taxes..at least it has worked every time that it has been tried.

    the only down side is that you fail to punish the successful, but why punish success?

    • Login to reply the answers
  • Earl
    Lv 4
    9 years ago

    How about cutting spending starting with obamacare and foreign aid? How about exporting all those illeagals in our prisons? How about cutting out all the pork?

    • Login to reply the answers
  • Isola
    Lv 5
    9 years ago

    By spending a few billion more. Ask Bush or Obama, they both did this.

    • Login to reply the answers
  • Anonymous
    9 years ago

    by abolishing republicans and democrats

    Source(s): independs rule
    • Login to reply the answers
  • Anonymous
    9 years ago

    b

    • Login to reply the answers
Still have questions? Get your answers by asking now.