Saving the American Dream: Fiscal Cliff and Beyond
This idea that the Federal budget can be balanced in ten years, an idea that the Neoconservative Heritage Foundation think tank. And House Budget Committee Chairman Paul Ryan is throwing out there is nonsense to put it nicely. We got a budget deficit of around 2T$, I believe 1.8T$ to be exact, so to reduce that completely in ten years. When it took the Federal Government eight years in the 1990s to reduce a then 290B$ budget deficit in eight years. Today's deficit is six times that so to reduce the 1.8T$ figure over ten years, you are looking at 180B$ a year in savings over ten years. Now in a Federal budget of 4T$ thats achievable but economic growth which shrunk by .01% last quarter. Is going to play a factor, so we would need probably to average 3-4 economic growth in the next ten years. We've averaged around 2/% the last ten years as we've been piling up debt and deficits. Not go through anymore economic crisis's or crisis's oversees that we have to respond to. No more super storm Sandy's and then you also need a real plan to actually accomplish this and means real savings and cuts in things. Where there's real money and not concentrating on just 10-15% of the Federal budget which gets you about 50B$ a year.
To balance the Federal budget in ten years a lot of things actually everything would have to go your way. Starting with first passing a real plan out of Congress and getting it signed by the President. Good luck where currently one side has no interest apparently in coming up with savings in defense. Or new revenue from tax reform and the other side having no interest in savings when it comes to entitlements. The problem with thats is thats where the money is more then half of the Federal budget. You don't touch those areas, you don't solve the problems, you don't have real economic and job growth and cutting the poverty level. You don't solve these problems, so looking at a balance budget plan from Heritage and House Republicans is like looking at a fiction novel. Where the author has one hell of an imagination and perhaps needs to seek professional help. It can't be done the way they want to do it because they don't go where the money is and only concentrate on 15% of the Federal budget.
We shouldn't even be talking about balance budgets anyway especially with a budget deficit larger then most economies. And a national debt larger then any economy in the World including the United States. A balance budget is way down the line, what we should be talking about instead is a plan that gets the debt and deficit under control. And then maybe ten years from now we are talking about how to balance the budget. And the way to solve the debt and deficit issues of today, so they are no longer growing faster then the economy. Includes savings in defense, entitlements including the broader safety net and tax reform. If you are talking about a serious plan and not Fantasy World.