Fiscal Stewardship: Democrat Vs. Republican

Fiscal Stewardship: Democrat vs. Republican

The state of the American economy is in complete turmoil these days. It is the duty of every citizens of the United States to make sure they are electing people into office who will be fiscal stewards of their nation. This means that they will assure government officials keep spending and tax policies sustainable and affordable. Americans have a problem with being fiscal stewards, so much so that the American economy has been downgraded from AAA rating to AA+ rating. The reasoning for this is because of the division of the elected officials. On one side there are the Democrats and on the other the Republicans. This paper will give a brief history of each party and discuss the views of both parties and their relation to the debt ceiling issue that has recently ravaged the United States.

The Democratic Party was formed over 200 years ago as a response from citizens for government representation for fairness of wealth and status instead of entitlement. Democrats "represent the interests of working families, fight for equal opportunities and justice for all Americans." (Committee, 1995-2011)This group believes in an honest, transparent and participatory government; the groups perspective is the greater the government's role, the more economic equality and development there will be. Several important programs have been created under the Democratic rein such as Social Security and Medicare, the G.I.Bill, the North Atlantic Treaty Organization, Peace Corps, and the Civil Rights and Voting Rights Acts.

Democrats suggested that Congress should raise the debt ceiling in three individual stages for a total of $2.4 trillion which would carry the government through the 2012 elections. They suggested Congress make $752 billion in discretionary spending cuts for a total of $2.2 trillion over a 10 year span. Democrats have no plan to make any changes to Social Security or Medicare but do believe there is room for further cuts in other governmental sources such as reforming Freddie Mac and Fannie Mae and selling portions of the electromagnetic spectrum. They have no plan to raise taxes for revenue nor do they have a requirement for a balanced budget amendment to the Constitution. (Chicago Tribune/Politics, 2011)

The Republican Party was created in the early 1850's with people who opposed slavery. Early Republicans were viewed as anti-slavery activists who believed in "free soil, free labor, and free men." (Committee R. N., 2011) Several significant programs where created under the Republican direction over the years such as the Emancipation Proclamation, Passing of the Thirteenth, Fourteenth and Fifteenth Amendments, and securing of Women's Voting Rights. Republicans are individuals who emphasize that government have a lesser role so Americans can have more economic freedom. They favor privatization, lower taxes, wages that reflect a free market and believe there should be less government regulations. The Republican perspective can be summarized as the more freedom Americans have in the economic market the better their needs will be served.

Like the Democrats, Republicans have their own suggestions on how to deal with America's debt crisis. Their plan states that the first step is to raise the debt limit in two-stages; the first would raise the limit by $1 trillion which will be paired with $1.2 trillion in annual discretionary spending cuts over a 10 year span. A bi-partisan committee would be created and