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← EconomicsThe Relationship between Savings and Investment →
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Produced in 2008 and directed by Patrick Creadon, IOUSA is a documentary film that centers on the outlook and impact of the national debt of the United States of America. The movie explores America’s shocking present fiscal condition and measures to evade national economic debacle. The blame is largely as a result of America’s fiscal irresponsibility. The country is faced with a problem of escalating military and government, amplified foreign completion, and other responsibilities that deem so difficult for the country to honor. The federal debt on the other hand, is estimated to $8.7 trillion, to the surprise of many citizens who think it is a far smaller figure (Creadon, 2008).

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According Walker and Bixby there are four main deficits that the country faces including budget deficit, savings deficit, balance of payment deficit and lastly leadership deficit. If America was a business, there are several, measures that could be taken to prevent bankruptcy. The first measure to use is to employ balanced budget just like Clinton did when he came to power through constraining spending and offering adequate revenues to carry out the government’s operations.

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Another potential step that could be taken to reduce bankruptcy is to initiate proportionate taxing of rich individuals and corporations. This will generate extra revenue that could be used to fund the ever rising spending in Medicaid, medical and social security as observed by Alice Rivlin.

Another way is managing debts through avoiding purchasing any item when one does not have enough money. In other words, Americans should learn how to control their buying behavior and avoid spending more cash than what they take home. They should also sacrifice today and build for a better tomorrow through savings as it will lead to increased investment, stronger economy, improved living standards and further research and development (Creadon, 2008). America should avoid buying more than it sells especially from countries such as China. This will help reduce trade imbalances being witnessed today. They additionally should pay more taxes.

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