Hi, the argument sets out a choice between two things with no possible other options. It then rules out one thing, forcing us to choose the other option: cutting expenses. We are then told we have a possible plan to cut. The author concludes that this plan is the ONLY way to solve the problem.
The author is correct that cutting is the only solution, but not that this method of cutting is the only solution. There may be alternative ways to save money than this plan, but the author has decided that since this plan will work, it is the only thing that will work.
