Firstly, an immediate tax rate increase proceeding a stable period of economic growth and recovery in conjunction with the minimization of expenditures by terminating or defunding social programs and decreasing the national defense budget.
Secondly, a steady or gradual tax increase proceeding and during a period of growth and recovery with the preceding method's conditions reiterated.
Thirdly, the United States could potentially nationalize its colossal debt which constitutes approximately $78,000 for every citizen residing within its confines. However, reminiscent of Japan in the late 1990's, the United States may likely lose its credibility if it pursues this method; thus, rendering it unable to contract additional debt for the subsidization of governmental operations.
Fourthly, the United States might simply contract more debt or further refinance its federal assets and the future of the United States economy to subsidize the amortization of its interest payments, comparable to a homeowner incapable of paying their mortgage that consequently refinances to secure capital which they use to merely cover the interest for an unsustainable period.
Fifthly, an excess of 50% of the United States national debt is domestically owned and it is primarily owned by intragovernmental agencies; thus, the United States could merely forgive part of its own debt and force domestic creditors to accept a default or forgive the loan. This solution requires no policy change and permits the United States to maintain its current fiscal irresponsibility; though, it is unlikely to ever be adopted as many of the domestic owners of this debt, such as financial institutions and investors possess significant sway in Washington.
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