Discuss the two major ways that the federal government can reduce the deficit. In your discussion, explain the advantages and obstacles to each major approach.

What will be an ideal response?

The federal government can address the deficit by reducing spending. Spending reductions can shrink the deficit but sometimes require making cuts to popular or expected government benefits. Another approach to cutting the deficit would be to increase revenues, by investing to stimulate the economy or increasing taxes. Both of these approaches are politically unpopular.