Explain three policy options available to the U.S. government to reduce its annual deficits and accumulating national debt. For each option, discuss considerations relative to that option, such as economic, political, or equity concerns.

What will be an ideal response?

Decrease entitlement spending: Entitlement spending (for Social Security, Medicare, and Medicaid) is the largest share of the federal budget and is projected to increase dramatically in coming years, leading to bigger deficits. It is politically unpopular to reduce entitlement spending.
Decrease discretionary spending: This represents education, the environment, infrastructure, housing, security, and other essential services that impact the quality of life.
Increase taxes: The tax cut for the rich could be eliminated or other taxes increased. Politically, this is unpopular, and Republicans generally refuse to consider tax increases as a policy solution.