Current Proposals hardly scratch the surface
As the debate on the Debt Limit rages on, we have a proposal to cut the deficit from one camp, and a ‘let’er rip’ proposal from the other camp.
The problem: One proposal is worthless, the other is very insufficient.
One proposal just says lift the limit, let’s not sweat the small stuff, after all, money grows on trees, doesn't it? Spend, Spend, Spend, No 'Problemo’. Well, wait a minute, maybe it is a ‘problemo’, as inflation soars and we are getting to the point where we can no longer kick the can down that road any further. At some point, this will end in an economic catastrophe.
The Republican proposal will cut the deficit and limit spending - to a degree. If enacted as planned, which is doubtful given the Democratic controlled Senate, it would cut the deficit by around 4 trillion dollars over the next 10 years, to only a $15.5 trillion-dollar deficit. The best I can say is that it is better than nothing - BUT it doesn't come close to fixing the problem. And it is primarily focused on discretionary spending, but……….
The 800 Pound Gorilla in the budget are the Entitlements (entitlements is a misnomer, these are really just transfer payments subject to the whim of Congress. They include pre-programmed, non-discretionary programs such as Social Security, Medicare, Medicaid, unemployment and Veterans benefits, and account for over half of all Federal spending). There are other problems to be sure, but spending on Entitlements increases the deficit by over 1 trillion dollars per year and gets worse every year. If we do not fix this preprogrammed spending, we have accomplished little.
There have been many serious proposals to reform this, but the demagogues take over every time trying to scare folks. None of the serious proposals that have been made throw Grandma over the cliff, or cuts benefits to existing beneficiaries who are in need. They are longer term proposals that will make the programs sustainable, improve the economy as well as improving and securing the benefits for individuals in their retirement years.
Most politicians will not address this for fear of not getting reelected. They must fix this problem, or our Ship of State will sail mindlessly into the proverbial iceberg some day and we will all sink together.
BOTTOM LINE
First, the public, all of us responsible citizens, must ‘get it’. We need to understand the problem and the urgency to fix it. The longer we wait, the harder it is to fix it, until it cannot be fixed. Good common sense solutions which protect the needy are on the table - but we must demand that our elected officials address it, and soon. Failure to fix the explosion in entitlement spending will inevitably lead this country to an economic disaster, or ruinous taxes in the future on everyone. Don't do that to our kids and our grandkids!
Learn about the issues and voice your opinion - loud and clear. Contact your representatives or send a message through our website by clicking the link below, Contact Congress. Don’t wait, do it now.
LEARN ECONOMICS, THEN VOTE SMART!