Quote:
Originally Posted by billethkid
...I don't care what your party or what your belief.....one cannot continue to increase spending without increasing revenues to support the spending. It is just that simple. Unfortunately far too many do not understand the simple concept of balancing a checkbook. You CANNOT spend more without getting more money. Yes some part of the spending can be on credit, but that too will max out. A simple concept NONE of the smiling dunces in Washington understand or care about....
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I've repeatedly suggested that people spend a few minutes with the federal budget in an attempt to identify where they might cut spending in sufficient amounts to create a balanced budget. If they do, they'll find that
it can't be done! Even if we adopt some Draconian and very painful cuts to federal spending, there will still have to be substantial tax increases. Look at the budget, do the arithmetic, and you'll see what I mean.
Google "federal budget" and you'll get all kinds of links. Read several and you'll be better informed about what our elected officials can and can't do, but more importantly you'll have a better sense of the urgency of them starting to do something now!
Just a little example of what can be cut and what the results might be. About 37% of the 2011 federal budget is classified as "discretionary". The balance are costs that are relatively fixed. Just as an example, if ALL government spending in all departments for any purpose were simply eliminated, zero'd out, the savings wouldn't be enough to fund the defense budget! The other "non-discretionary" budget items, all greater than the cost of the defense department, include Social Security, Medicare and interest on the national debt.
It's very easy to conclude two very obvious truths from this analysis...
- Some non-discretionary (fixed) spending is going to have to be "unfixed". The costs of Social Security and Medicare for an aging population are simply unsustainable. Those payments will have to be cut substantially. The only question is "how".
- Even after slashing discretionary spending as well as "unfixing" some of the non-discretionary spending, the budget will still be far from balanced. The only alternative then will be to raise taxes. They will have to be raised substantially to create a balanced budget.
Look at the budget, folks. See if you agree with my conclusions. Sadly, I'm sure you will. It's simple arithmetic, or as Billie says "balancing the checkbook".