What is a pro-business, pro-trade approach as a national debt strategy?

Question

A. The federal government increases corporate income tax rates and uses the new funds to pay for the national debt.
B. The lenders of the national debt forgive the federal government's obligations on the debt.
C. The federal government sells oil and natural gas to other countries and uses the proceeds to pay the national debt.
D, The Treasury prints money and the federal government sells the new funds to other countries to pay the national debt.

Answer 1

A pro-business, pro-trade approach as a national debt strategy would involve actions that encourage economic growth, stimulate trade, and promote business activities, while simultaneously addressing the national debt. Among the options provided:

C. The federal government sells oil and natural gas to other countries and uses the proceeds to pay the national debt is the most aligned with a pro-business, pro-trade approach. Selling natural resources to other countries can generate revenue, promote trade relationships, and leverage natural assets for economic benefit.

The other options do not exhibit a pro-business, pro-trade strategy since:

• A (increasing corporate income tax rates) could discourage business investment and growth.
• B (debt forgiveness by lenders) does not involve active trade or business initiatives.
• D (printing money and selling it) could lead to inflation and is typically not considered a sustainable or responsible fiscal strategy.

Therefore, the correct answer is C.