“Fiscal Cliff” put in a much better perspective.
Lesson # 1:
* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000
Let's now remove 8 zeros and pretend it's a household budget:
* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts so far: $38.50
Got It ?????
Lesson # 2:
Here's another way to look at the Debt Ceiling:
Let's say, You come home from work and find
there has been a sewer backup in your neighborhood....
and your home has sewage all the way up to your ceilings.
What do you think you should do ......
Raise the ceilings, or remove the #$@%?
There should be a corresponding cut in expenditures by government for every dime of tax increase.
Be nice if it could be two to one.
To only increase the tax burden on those who are wealthy serves to take away venture capital for our private industry and from those involved in free enterprise. There fore reducing job opportunities.
"Social Security benefits are about to be cut."
I am now a Social Security recipient, and I say: CUT AWAY. But from what I am hearing from Capitol Hill, they are not cutting benefits already provided to SS recipients. They're talking about playing with the retirement age; the way the program is funded; and "solutions" which will not affect current recipients.
As far as I am concerned, NOTHING SHOULD BE SACRED - they should cut everything across the board. I'm talking about Social Security, welfare, food stamps, defense, foreign aid - every single federal government program should be cut. And I'm not talking about cuts in growth of spending or cuts in increases in spending - I'm talking about actual cuts to the current level of spending in every program.
Of course, I'm saying they should do this PROVIDING that they use the money to pay down the federal debt and balance the budget - NOT take the money and pay for some other "emergency" or pet projects they might have.
My prediction: Never happen.
Happy New Year.
That is correct: NOTHING should be sacred. I'm saying they should cut military pension outlays, TRICARE benefits; the works. I have previously offered on this web site to donate my entire Social Security benefit - if others would do likewise - to be specifically applied to the reduction of the federal debt and balancing the budget. Of course, it's a frivolous suggestion - as viewed by the government - because they would never do it. But I'm as serious as a heart attack.
I NEVER said it is okay to "let the wealthy skate" on anything. As you're a relative newcomer to this her blog site, I'll reiterate my blueprint for a return to the fiscal health of this country.
*TAXES MUST GO UP - for EVERYONE. No exemptions; no exclusions; everybody who is a taxpaying citizen gets a tax increase. I would prefer a flat tax, but no need to discuss details here. The point is - everybody's taxes go UP.
*NO TAX REFUNDS FOR PEOPLE WHO DON'T PAY TAXES. Period.
*ALL ENTITLEMENTS ARE CUT. If everyone is reaping the benefits of living in this country, then everybody who benefits from our system should feel the pain. As I said above, military retirement and benefits should NOT be exempted. They should be part of the equation.
*IN PARTICULAR - SINCE WE ARE GETTING OUT OF "FOREIGN WARS" - DEFENSE SHOULD BE CUT. I'm talking about our overseas "footprint" and the ongoing programs that comprise the vast majority of the defense budget. The last time I checked, military benefits - retirement and otherwise - accounted for less than 30 percent of the entire defense budget. So there's a big piece sitting there to be whacked.
*WE MUST GET THE WELFARE STATE UNDER CONTROL. Free cell phones and chest-thumping for adding to the food stamp rolls is the wrong answer. Welfare used to be a program which was a helping hand - not a hand-out. And staying on welfare for life was disincentivized. I don't get that sense nowadays. When the federal government promotes foods stamps they way Ford promotes Fusions, there's something wrong with this picture.
*ALL PROCEEDS FROM THESE CUTS GO TOWARD PAYING DOWN THE FEDERAL DEBT AND BALANCING THE FEDERAL BUDGET. It didn't take us a few years to get into the hole we're in - and we won't get out of it in a few years. I project approximately 10 years of austere belt-tightening using my prescribed formula above to get us out of the hole.
And as I said in another blog, to simply cut the growth in spending is tantamount to doing nothing. The interest on the debt continues to grow; government spending continues to grow (albeit at a smaller rate); no reduction in the "principal" occurs; and we just "kick the can" down the road.
We have been pussy-footing around with this problem for most of my adult lifetime. Much lip-service is given by our politicians, but the fact of the matter is that nobody REALLY wants to address the problem. They only want to treat symptoms. Most politicians want to be all things to all people so they can get votes. Nobody tells the truth anymore, because to do so wouldn't get them elected. The people don't want to hear the truth, because it would infringe on their "pursuit of happiness."
The current state of our country demands that we hit our fiscal problems head-on. That means NO SACRED COWS. Everyone must feel the pain, from the richest of the rich on down. We need to get our financial house in order, or things will get a lot worse than they are perceived now.
Yes - up2. Everything must be on the table. And not like they are just saying "everying is on the table now." That's is NOT true. Everything is NOT on the table. The only things on the table are those which are the sacred cows of THE OTHER GUY. Every single politician would vote like lightening to cut somebody else's sacred cow, but when it comes to their own - NOOOOOOOOOOOOOOOOOOOOOOOOO. That attitude is what got us here.
Obama, one lie after another!
Cut this crap out, we can leave SSI alone...
Sheran, I was thinking if things do not work out with your present significant other, then you should marry your soul mate: TOT.
One lie after another from our news media is what has really brought us to this situation.
Vladimer Putin Russia's Prime Minister said that Obama and the American Democratic Party are either idiot's or they are deliberately trying to wreak the American economy.
I don't know if it is intentional or not but the economy has never been in this bad of shape in my lifetime.
Sheran and JMack I wish you both and everyone else who visits this site a very Merry Christmas.
Maybe next year we can become a little more mature in the way we engage in our exchanges of point of view.
Question for the graduate.
Did you read the part about the FEDERAL RESERVE BANK being broke as in out of money???????????????????????????????????
JM what sayest thou?
I meant to post that the FDIC is broke as in out of money.
The Federal Reserve Bank can't go broke as in out of money.
All they have to do is print more paper Federal Reserve notes
They have been doing that rather recklessly for some time now.
That is why the credit rating of the US was downgraded a while back.