Skip to comments.Avoiding Fiscal Catastrophe
Posted on 10/21/2013 11:33:04 AM PDT by Kaslin
Saying government spending is out of control is an understatement on the scale of saying that Michael Jordan was a good basketball player or Babe Ruth hit some home runs.
Thanks to unbridled spending, corporate bailouts, and the takeover of the best health-care system in the world, America stands on the verge of a financial cliff that endangers our future, our childrens future, and our grandchildrens future.
But it doesnt have to be this way. Here is a series of reforms that can help us avoid fiscal catastrophe:
Enact spending caps. Washington has no enforceable limits on its spending. As long as Congress remains under pressure to spend, members need annual spending caps to help them set annual priorities and make the necessary trade-offs.
Congress should enact a firm cap on the annual increase in total government spending, limited to inflation plus population growth. It should also include triggers and other protections to prevent lawmakers from bypassing this cap.
Rein in entitlements. Social Security, Medicare and Medicaid are driving long-term deficit growth. It is impossible to rein in runaway spending significantly without fundamentally reforming these programs.
Empower states. Washington taxes families, subtracts a hefty administrative cost, and sends the remaining revenues back to state and local governments with specific rules dictating how to spend the money.
Instead of performing many functions poorly, Congress should focus on performing a few functions well. Most highway, education, justice and economic development programs should be devolved to state and local governments, which have the flexibility to tailor local programs to local needs.
Empower the private sector. Anyone who has dealt with the post office or lived in public housing knows how wasteful, inefficient and unresponsive government can be. Government ownership of business also crowds out private companies and encourages protected entities to take unnecessary risks.
After promising profits, government-owned businesses frequently lose billions of dollars, leaving taxpayers to foot the bill. Any government function that can be found in the yellow pages should be a candidate for privatization.
Ban corporate welfare. Even before the financial bailouts, Washington spent more on corporate welfare ($90 billion) than on homeland security ($70 billion). Americans should not be taxed to subsidize profitable companies. Lawmakers could start by reforming Americas largest corporate welfare program: farm subsidies, which are overwhelmingly distributed to large, profitable agribusinesses rather than struggling family farmers. Other programs, such as the Advanced Innovation Program (formerly the Advanced Technology Program) should be cut.
Eliminate pork and waste. Each year, Washington loses billions of dollars to payment errors and pays billion more to maintain vacant federal properties. Washington also diverts about $20 billion annually into pork projects, corrupting the legislative process by assigning taxpayer dollars on the basis of lobbying rather than merit.
Bring federal pay into line with the private sector. Besides doing too many things, best left to the private sector and the states, the federal government pays its employees substantially more than they would earn in the private sector. Total compensation -- hourly wages plus benefits -- is 30 to 40 percent above that of comparable private-sector workers. Aligning federal compensation with market rates would save taxpayers about $47 billion annually.
Without serious planning and foresight, Americas future will be grim. The unrest in Europe in recent years, from Greece to Great Britain, is a warning, a crystal ball through which we can see what might well happen to us should we succumb to the temptations of irresponsible government.
What if a dominant party stands to gain with a fiscal catastrophe?
Even if all that was done I still don’t see how to dig out from 17 trillion dollars of debt without causing a civil war. No matter what is done, a significant portion of the population is going to be thrown into abject poverty whether that is the parasite class or the taxpayers who have been footing their bills.
“No matter what is done, a significant portion of the population is going to be thrown into abject poverty whether that is the parasite class or the taxpayers who have been footing their bills.”
yes, but Michael Bloomberg, mark zuckerber, Elliot sptizer, et al, will helicopter from rooftop to rooftop, bathing in wealth, and not having to answer for any transgressions, because they will own the law.
why do you think they fight for open borders and to take our guns away, because Bloomberg has a love for humanity? lol
this has always been the plan, and they have cowed us into keeping our mouths shut.
Defund ovimitcare, and cut entitlements for the welfare parasites by 50%.
It is extremist to even suggest it. Off to reeducation camp for you.
This is old advice, and it did not achieve its goal. The national government has become the enemy of America, and so only extensive surgery, based on *philosophical* principles, can restore it. Some of these principles:
1) An economy based on easy credit is doomed to fail. With reform, credit for anyone should be a rarity, not a norm. The old adage holds true: “Loans are given only to those that do not need them.”
2) A truly federal government is a government of the united but individual states. As a federal government, it has no authority to directly interact with citizens of the individual states, except to prevent the individual states from harming their citizens, or the citizens of other states.
3) There are strict constitutional limits as to what the federal government is permitted to do with listed forms of interstate commerce. The perversion of federal involvement with intrastate commerce must end.
4) While corporations need protections from abuse by the states, these must be distinguished from human civil rights, which are properly reserved to humans.
5) The office of the Vice President should be invested with the purpose of reducing the size and authority of the federal government, and the VP should convey his findings in that regard to congress concurrently with the State of the Union.
6) While elimination of all federal largess programs is a goal, serious efforts must be made to make this as painless as possible for as many people as possible.