Within some three weeks The House will be dealing with the new federal budget.
Many of the newly elected right wingers are seriously planning massive cuts in all
programs without regard to their merits, or their contribution to our recovery from
the deep recession which bedevils the nation. They are prepared to shut down the federal government if that's what it takes to get their way. Apparently they haven't a vague notion of the disastrous consequences on our credit markets of such a cavalier action. We as a nation may soon see the consequences of electing members of
Congress based on emotions rather than wisdom and judgment.
The nation has operated on a deficit budget for decades. We finance even basic operations such as defense using borrowed money. Because we are such a huge market, the nations which sell to us are willing to
lend us the money to buy from them. We have
become addicted to this system and now use it to finance almost all government operations and programs. The wealthy want a free ride and fight against all taxes. The middle class is now impoverished and cannot pay more taxes.Our consumption is financed by credit, increasing the national deficit. As a result of these structural defects we are unable and unwilling to take the painful measures which could gradually eliminate the deficits: increased savings and taxes devoted to actually paying down the debt.
To try to change the deficit financing system now, without taking the steps to pay off the debt will fail. So we must continue on the same path and hope our creditors
will continue to finance our profligacy. When they stop we will enter bankruptcy
and the great American Legend will end.
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2 comments:
I agree with your assessment but hasten to add that at least some of us Americans are also watching the Egyptian situation and asking ourselves; "Could that happen here, too?" -Yes, it very possibly might.
Our culture is inebriated with credit spending but, especially now that so many banks are getting shut down due to credit incompetence and mismanagement, our culture is destined to suffer possibly unrecoverable failures, also.
The simplest, most applicable lesson for all of us is an ancient rule-of-thumb; "If you you have it, spend it. If you don't have it, forget it." Newer, shinier, or sexier "stuff" is not a reasonable goal.
Now, more than ever during the past hundred years Americans need to answer the very simple question; "Does this make sense?". If our answer is "No" we have only to wait another week for yet another 'absolutely-must-have' enticement.
72% of Florida governor Rick Scott's deficit reduction proposal takes money away from public education. He's not an idiot - he knows that the public and political demand will swing in the opposite direction which will likely cause even larger budgetary short-fall. We need to stop accepting rhetoric where intellect is really needed.
To get our country back on the right track from the current runaway deficit, here are some thoughts: Washington should cancel the remaining stimulus funds.
(Unemployment support could be funded with other savings.)
• The Federal spending should be limited to 20% of GDP as in post WWII years.
• Farm subsidies to agribusinesses should be reformed.
• Federal employees compensation and benefits are 30% above the private sector and should be brought down.That’s over 45 billion dollars a year.
• Drop the annual “doc gift” (cuts for Doctors on Medicare payments) and above all
• defuse the ticking Obamacare timebomb.
The list can go on and on
jacquesmaxx.blogspot
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