"I hope the people on Wall Street will pay attention to the people on Main Street."
- Ronald Reagan
The economy is undoubtedly strong right now, but it is proped up by a ballooning defecit. They may have to raise the top number for the debt yet again, the third time in the Bush presidency. I simply fear what happens when the balloon bursts. I'm reminded of the 1920s, which we're studying right now in class. Though for different reasons, the economy was "Roaring" superficially, but underneath problems were growing. Then, the bottom fell out. I fear we're setting ourselves up for an historical breakdown unless the leadership does something to fix this problem. Cutting taxes and basic social programs isn't a good start.
Well then, Mike, what do you propose we do?
I say that massive cuts in ineffectual or overfederalist programs are neccessary. We need to slow the growth of benefits in entitlement programs, and repeal Medicare Part D.
I say that massive cuts in ineffectual or overfederalist programs are neccessary. We need to slow the growth of benefits in entitlement programs, and repeal Medicare Part D.
Note that the deficit reduction in the 1990s was achieved through simply slowing the growth of spending, while simultaneously encouraging economic growth, and modestly increasing taxes (yes, taxes increased slightly and the economy expanded dramatically, imagine that!!)
Do you want "massive cuts" or just to "slow the growth in benefits?" Which is it?
Or do you want massive cuts in certain programs only (which ones?) while simply slowing the growth in others?
Is military funding an effective or "ineffectual" program? as measured how? How about our overseas nation-building expenses (which is funneled into US corporations)?
As noted elsewhere, entitlement spending is growing now because many people's declining income has caused them to become newly qualified for benefits. Maybe the best way to slow the growth in entitlement spending is, oh I don't know, slow the growth in the number of poor people?
Although I do agree that Medicare Part D should be repealed, and folded into a national health care system.
"Or do you want massive cuts in certain programs only (which ones?) while simply slowing the growth in others? "
Yes. I wish to slow the growth of Medicare, Medicaid, Social Security, and Welfare. I want massive cuts in the Depts. of Education, Agriculture, Veteran's Affairs, Transportation, as well as the elimination of farm subsidies, Congressional earmarks, and funding for the UN.
How would you propose we stop nation-building?
Not even raising taxes necessarily, but just allowing the cuts to roll back, while at the same time closing up loopholes in the code that allow multi-million and billionares to not pay a dime to the federal government that accomadates their success. I have no problem with some reduction in spending on ineffectual programs, or at the very least closer monitoring of these programs. Too many people exploit the welfare state that is there to help those down on their luck. It might cost money in the short run to hire folks to look into claims of disability, etc., but in the long run it would save tons of money.
My point was, however, that we should not be too excited about this "economic boom." The US has become like the guy in the commercial with the nice house, nice car, etc. How do we do it? "We're in debt up to our eyeballs."
Cuts in Veteran's Benefits? Were you for our troops before you were against them, Ryan?
Hehe....
I never said anything about Veteran's Benefits, just a cut in a Dept that does not need a Cabinent level position.
I'll agree with you about that, Ryan! I'd say we could wipe out half of the Cabinet, if you could ask me. I think most of the pork is in the bureaucracy. Get the money to those who directly use it, not to government oversight groups and Cabinet bureacracies that waste most of it.
Mike said, "The economy is undoubtedly strong right now, but it is propped up by a ballooning deficit." Well, yes, but let's not forget the real estate boom.
I'm mindful of the tech stock boom of the 90s (I was working in brokerage at the time) where everybody used the overvalued stocks to buy on the margin. In layman's terms, as collateral for a loan to buy more stocks, which could themselves then be used as collateral to buy more stocks, and so on. When the tech bubble blew, everything that had been bought on the margin suddenly had to be sold to make up for the lost value of the original collateral. (I blame Clinton for bursting the bubble by going after Microsoft, but something would have done it eventually.)
My point is that the real estate market is running hot much the same way now as the stock market was then, but investors are more mindful of a bubble situation, and real estate has intrinsic value. In other words, there can be a contraction without a collapse. Deficit spending works much the same way; it's troubling to run a high deficit as we are now, but there isn't a vulnerability to collapse of US government securities.
In summation, take a deep breath and go after waste, pork barrel spending and earmarks because they're bad, and let the deficit take care of itself...think of it as more like a symptom than an illness.
"there isn't a vulnerability to collapse of US government securities."
The problem is, a huge chunck of our defecit is in the hands of foreigners, include the Chinese and our "friends" in the Arab world. Our securities won't "collapse," but if, for some reason, these foreigners decide to stop buying or cash in their share, we're going to be in a world of hurt. They would have to raise interest rates through the roof in order to attract investors from the US to buy securities, contracting the money supply and putting an end to any economic growth we may be experiancing. At some point, investors will get nervous and stop investing in our economy anyway. Our growing trade gap is another point of concern.
No matter how Republicans may try to spin it, our economy simply isn't as strong as it looks.
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