Friday, January 28, 2011

How To Fix The USA

This post will not even be that long. Our problem is easy to diagnose. It is excess federal spending. We've been spending more than we tax since 1969 & especially since the Reagan administration. Our total debt has been skyrocketing since 2000 and has really taken off in the last few years (2007 to 2011).

If we don't control our federal spending now we are going to end up with 92% of our budget consisting of only 4 items by 2020: social security, medicare, medicaid, interest on the debt. The last 8% of our budget will have to cover everything else that the federal government does for us: roads, NASA, Federal courts, DEA, Air Force, National Endowment for the Arts, FAA, student loans, Homeland Security, Centers for Disease Control , Environmental Protection, et cetera.

Even if we cut our federal spending in half ( from 3,500 billion to 1,750 billion) we would only be left with a yearly surplus of $250 billion ( 2,000 billion - 1,750 billion ). Take our total current debt of about 14,000 billion and divide it by $250 billion and it would take 56 years to eliminate our debt. Bottom line - we need to radically cut social security, medicare, medicaid, and the military.

Of course these are simplistic calculations not taking into account for interest or growth or shrinkage of the economy however they do give you an idea of the gravity of our situation. Old people are protecting their "entitlement" spending. The military-industrial complex is working overtime as the worlds policemen and scaring up new boogeymen to justify their huge budgets. Special interest groups and bureaucrats are protecting their piece of the budgetary pie. Who will stand up for our children and grandchildren? Who gives a damn about the future of this great nation?

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