Getting out of Debt is Like Holding a Tea Party in Difficult Situation – Term Paper

Possibly one of the most depressing situations which is unfolding in the world politics currently has been how to act on the real economic situations facing most of the countries. Some of the researchers have attempted to explain the Boehner’s plan, which cuts the government expenditure in economies that are finding it difficult to sustain growth. When various economies are in crisis, they borrow money from financial institutions. However, this makes things worse as they have to pay with high interest rates. When families are in tight financial situations, they cannot spend all they have borrowed on eating lobsters and steak; they have to utilize the loans reasonably. This said Getting out of debt in crisis is like holding a tea party in difficult situation.

In regards to the concept of the Tea Party, whose aim is to reduce the size of family expenditure and set the members from interfering with the family matters because of difficult situation , the family holds a tea party in difficult situation because it will not ease things up. Regardless of the advantages of the tea party in uniting the members as well as the neighbors, it is not logical to hold a tea party is not the solution to a strained family. The main argument that the current state of most economies results from high levels of expenditure is like the tea party above. They are spending more using significant financial debts. This strategy cannot be effective because there are certain problems, which cannot be solved by cutting expenditure. Cutting unnecessary expenditure can be effective if the federal expenditure is in line with the Gross Domestic Product. This sustains the levels of investments to see the economy grow in recession. However, it would be difficult to get out of public debt if there is unnecessary expenditure regardless of their levels in case the government loans are used . On the other hand, there is no reason for a family to hold tea party to solve problems, since in the first place, that party is not necessary. In addition, regardless of the status of party, a tea party cannot ease difficult situation because after the party problems will be cyclical. Therefore, getting out of debt by cutting unnecessary spending in financial crisis is like holding a tea party in difficult situation because in both cases, the situations will be worse off.