Money makes the world go round,but in the case of the national budget---it may be the reason the United States government will not go much at all and may ,in fact,shut down. Unless the Republicans and the Democrats can come to terms with each other by midnight Friday night,consider us closed for repairs. Faced with a horrendous debt overload of over 14 trillion dollars, something has to be done---but where, who, and what? The Dems have timidly offered 30 billion in cuts, and initially, the Republicans offered 65 billion---both a mere pittance, and hardly a demonstration of leadership from either party. But, hey---election year is coming soon, and neither party wants to be the punching bag and hated villian for the other. It's politics as usual, even as our ship is sinking---does anyone have the courage to do something besides bail water with a hat, while the waves of bankruptcy loom in the horizon?
At this point in time, the two party representatives are still behind closed doors, quibbling over a few billion dollars---none of which is going to make a whole lot of difference. The budget needs a complete overhaul, whether by spending less, or taxing more; and here's the kicker--- this is just for openers---the real battle lies ahead, as we shall discuss later. Obama seems to have stepped away from this one, leaving the dirty work to his senate soldiers, and admonishing both members of congress to behave like adults. May I remind the president once again, that he is not our father, and congressmen and women are not his children. Perhaps Mr. Obama should decide to get his hands dirty and enter the "sausage making" debate, rise above both party's ideologies and lead us away from shut downs, political threats, and inevitable bankruptcy. But that could mean big compromises, which could mean political suicide, and Obama is not about to become a loser. As he once said, "I won", and he intends to keep it that way.
In the meantime, however, along comes Paul Ryan, chairman of the House budget committee, who yesterday unveiled a new plan for 2012 ---one which would cut the budget, not by a few billion, but over 6 trillion! Of course, the Dems went apoplectic before the plan was even rolled out, accusing Ryan and the Republicans of all manner of viciousness and draconian measures. But, unbelievably, this plan is out there, standing bravely and brashly, election or not---predicated on the hope and presumption that Americans are ready to at least listen to a possible solution, a path out of the wilderness of unsustainable debt,hard core though it may be. A huge gamble for the Republicans,it will mean a dramatic overhaul of our Medicare and Medicaid system---but that's where many say the main hemorraging of the budget is located. It will also mean that we will have to take more responsibility for our own health needs--what a concept! Will it work? And most importantly---will the American public go for this extreme and audacious plan? Or will we once again, succumb to the easy "kick the can down the road" game, and be lulled back to sleep by the groans and moans of the Democrats, who insist we must keep spending to stay afloat. We shall see---but for now, we are in limbo, as both parties posture, pull, and politic over billions, instead of the trillions needed to make a significant difference. Kudos to Paul Ryan for exhibiting uncommon valor and bracing truth in a political world of mostly smoke and mirrors.
It is disappointing that so much of our lives depend on the whims of political sway, and so much of what comes out of Washington is influenced by partisanship, not real solutions. But in the case of this budget crisis and the future battles ahead, there is much more profound issues at stake that transcend mere budgetary concerns. It has to do with the core differences between the two parties, and they are glaring and more polarizing than what this country has seen in a very long time. When taken down to the bare bones of it all, the Republican party believes in cutting the deficit by reducing the size of government and entitlement programs, and the Dems will never be convinced that anything other than more and higher taxing is the only way to run a country. One party believes in individual, self-supporting people allowed and expected to care for their own needs; the other believing the government should play a much larger role in caring for the peoples' basic needs. Somewhere there must be a balance, which is why we all believe in our two party system--we are not inclined to left or right extremism. As we wait for this current budget crisis to reach a compromise, we will see what awaits in 2012, when the going will get much tougher---and we get much closer to economic disaster . Some are predicting that this country will not survive past 2037 if we don't come up with some serious solutions soon. That is a more than a sobering thought---one that should give all of us pause and reason to perhaps do more than just observe.
For those who think higher taxes for the rich, is the answer---math and data show that there are not enough rich people to close the huge gap between what it takes to run our ever burgeoning government and what such taxes would bring in--- therefore the bulk of taxes to pay for all the government expense would come from the middle class---another sobering thought,as we consider that much of our earnings will be taken just to run the government. For those who think we should dramatically cut and change our current system---good luck. Change will not come easily or be all one sided---but come it must, if we are to survive and thrive. Don't necessarily pick a side--but do look at what's happening and vote your conscience and your informed mind. It isn't just about donkeys, elephants, tea parties or unions---it's all about us and how we want to live--with more freedom or more entitlements.
Money may make the world go round, but there's only so much to go around---do we want to become a "nanny state" where the government takes more and more of our money to care of more and more of us and our needs, or be allowed to keep more of what we make, and in turn create more revenue for the government? Do we want to "spread the wealth" by taking from those who made it? And is that moral? Or do we believe that it is immoral for a few to have so much more than so many others? Are we a nation or a "family"? Those are the ultimate questions---and one which we will be forced to come to terms with in the very near future. They have been asked before--and answered before by other countries. The spectre of Europe and their failing economies hover and haunt as examples of welfare gone to extremes. As we struggle to find our balance and our compromise with each other,the future of this nation is in great jeopardy---will we rise again, or will we drown as we pull each down into the riptides of disagreement and irreconciliable differences?
For now, we all wait to see what a handful of politicians decide regarding how our money should be spent or not. Ironically, we're close to broke, and yet the argument continues as to whether to spend more or less.
These are perilous times for the United States of America, and perhaps a wake up call to all of us that thought we could just "leave things to the politicians". But where to start? Follow the money? How about follow the leader---if only we had one. Keep your eye on Paul Ryan and those like him who will risk their careers to speak the harsh truth of reality. No more money, honey---time to get tough, as the clock ticks toward midnight.
Thursday, April 7, 2011
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You so glibly challenge us to do the arithmetic. Show us your arithmetic and your sources. It's your blog.
ReplyDeleteOkay, I thought it must be pretty obvious that there are not enough rich people in the country to bail us out of this gargantuan debt problem, which will grow to 14 trillion if Obama's tax proposals go into effect. The current tax hike plan will raise the two top tax rates from 33% and 35% to 36% and 39%, which is according to the charts I've seen are off the charts and one of the highest in the world! There simply aren't enough rich and those that are don't make enough to make up for all the spending. Put another way, if you were to tax 100% of every income in this country over one million, the best you'd come up with 850 billion---a mere drop in the old bucket. Those are the stats I've read--but one can always come up with different theories, depending on your ideological bent. Do we really want to steal from the rich on the basis that they have it and others don't? There is also the theory that as the taxes grow ever higher, so too goes the inclination to produce more and invest more=less revenue, less tax. More taxes across the board for everyone means less consumer income for spending and for taxes. If you still believe in taking rather than making, all I can say is--we're getting there fast, so we'll see what happens. And if you want more stats, I'll be happy to supply them---there are an abundance available.
ReplyDeleteYour "research" explains why you have bought into Ryan's draconian proposal. Way back in 2004 about 240,000 tax returns were filed with adjusted gross incomes of $1 million or more. If we assumed the untruth that $1 million was ALL each of them made, that would be $240 billion all by itself. But my fallacy is that very few millionairs make a mere $1 million. Some of them make very much more. In March 2007 FORBES reported there to be 946 billionairs in the USA with a combined net worth of $3.5 trillion! If I had 2011 figures these numbers would be much higher. So, where do you get your $850 billion, "a mere drop in the old bucket"? Yes, we need more stats and sources. Thanks in advance for being happy to supply them!
ReplyDeleteSorry to be so late in getting back to you---I've been busy "researching"---but finally have decided this is an exercise in futility. I could bury you in data that supports my position--then you would shoot back with the opposite. Since neither of us, far as I know, are economists, we must rely on those that are---but they, too, are divided on this issue, as much of it is hypothetical and subject to many variables---and slanted to their particular ideology. I leave you with one question, which I've asked before, and you've never answered (provided you are who I think you are)---show me one country where distributing the wealth more evenly has worked even nearly as well as ours has. Russia? China? Even China is now going capitalistic, or a version of it, after years of communism. It has never worked, and yet there are those who keep trying---is it class warfare, or class envy??
ReplyDeleteDenmark.
ReplyDeleteI thought you'd probably say that---but it's so much smaller in size and population, it's hardly a fair comparison. It is definitely a welfare state, and if you like that sort of thing, maybe it would work for you--they do seem like happy people---but then they are Danes,and they know nothing different, experientially. It's just not the American way, or at least the way in which we built this country. I've heard it said that the only people who like Denmark are the Danes and liberal Americans. Besides it's very cold there--maybe they need the govt. to provide enough heat----
ReplyDeleteYou said only one.
ReplyDeleteI was trying to go easy on you----there are no more, and Denmark wouldn't be my cup of tea---you'd need lots of it to stay warm---
ReplyDelete;-)
ReplyDelete