Monday, October 3, 2011

More Than Spending Cuts Needed for US

Spending cuts alone will not solve the US economic problems.  It is going to take a combination of spending cuts, economic growth and judiciously raising revenues in order to reduce the deficit.

The trick is knowing when and where government should spend money and where to cut.  Cutting everything is not a good approach.

The problem is we do not know how to prioritize spending cuts and government spending because we have no Plan - no vision for the future.  Our President, Congress and even the current gaggle of GOP presidential candidates have no vision and no plan for America.  All of them are bankrupt of ideas.

I fear we are screwed.

4 comments:

  1. An arch-conservative (almost tea-party) friend of mine is convinced we're headed for a societal collapse like in Beyond the Thunderdome complete with food riots and such. Not a pleasant prospect.

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  2. I'm not sure about societal collapse, Jon, but I think we are in for a time of social unrest like we had at home during the Vietnam War. These 'Occupy Wall Street' demonstrations are just the very tip of the iceberg. It comes down to people have the perception that the financial elites that were major parties to the current financial troubles have gotten off scot-free, and even profited, while normal citizens and taxpayers have paid the price.

    After the meltdown in 2008 justice needed to be seen to have been done and some investment bankers, bond raters etc needed to be publicly tried and punished for their misdeeds. They were not and that does not sit well with people anymore.

    Combine that with almost complete inaction from both Congress and the White House and you have big trouble brewing if the economy worsens.

    And it's sad that we have to go through this. Not what I like.

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  3. The problem seems to be that nobody can agree on what spending to cut and where to increase taxes. Let's stop calling it raising revenues. Our government doesn't have revenues like a business, it purely collects taxes from citizens in order to serve the overall population where otherwise they aren't served.

    I am conservative, but tax reform and increasing taxes does have to be part of the solution. I am just tired of the vilification of capitalism and business in our nation. This is what built our country. The great industrialists, Rockefeller, Carnigie, Henry Ford, these men weren't saints, but their creations benefited many.

    Reduce spending, and this means entitlement spending and defense spending, increase taxes, this probably means capital gains taxes and reducing deductions, and get people in DC that realize the government doesn't control the economy.

    I haven't studied it but I am intrigued by Herman Cain's 9-9-9 plan. Essentially 9% taxes on individuals, corporations, and a 9% national sales tax. Simple, to the point, and equitable.

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  4. That's just it - nobody can agree. And we have no leaders to help us form some sort of consensus. There is a definite leadership vacuum in America.

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