Malaysia is facing NATIONAL DEBT? - Yu Jo Yee -

NATIONAL DEBT? We owe other countries ?!!!

In the year 2012, Malaysia government debt stood at RM 470 billion !!!

Although Malaysian always pay Taxes, but national debt NEVER reduce . 

Why citizens are bearing tax but still OWE to other countries !?

-Government spending is exogenous. Thus, Malaysia government spended over budget and lead to budget deficit.

Discretionary Fiscal Policy = Government Spending + Taxing Power 

Concept above shows that apart from increase tax, government must also reduce spending.

California is the real and best example. Two years ago, Californians are facing $25.4 billion deficit. But they are having budget surplus. There are some methods in helping California's economy.

Jerry Brown is the governor of California since year 2011. He cut down the spending of the country, cutting university budgets, holding K-12 education to the minimum and slashing health and social service programs. And he gathered signatures for a ballot initiative to raise income taxes on the wealthy and increase the sales tax by a quarter-cent on the dollar.

Malaysia government should follow those methods to improve our economy. For instance, cut down the expenses on education, healthcare, tourism and others.

While Malaysian can support domestic products, travel in Malaysia, work in Malaysia after graduation etc. Malaysia’s economy may improve by these little contributions.

I hope we can release from the national debt ! MALAYSIA BOLEH!!!

By__Yu Jo Yee