From what I have read we are actually beyond the point of no return. All we can do now is wait for the train crash.
Yup, its all over. Just waiting for the collapse.
And no where to run. We will take down the entire world economy with us.
All because the Democrats couldn’t stop spending and the Republicans were too weak (and often complicit) to stop them.
“From what I have read we are actually beyond the point of no return. All we can do now is wait for the train crash.”
To avoid the crash we must become fiscally responsible today, not some future year. The federal government living within its means today would look something like this:
Total federal receipts $2.1 trillion. Assume no tax increases.
Interest on the national debt is $400 billion. This leaves $1.7 trillion.
Assume the next priority is to start paying down the national debt. We can wipe out the debt in approximately 50 years with payments of $200 billion per year. This leaves $1.5 billion.
National defense cost is approximately $700 billion. We can no longer afford our foreign entanglements. Bring the troops home from around the world and save about $200 billion. Cut another $100 billion from the budget leaving $400 billion. China, the next largest military spender spends $100 billion. At $400 billion for defense we have $1.1 trillion left. Plus bringing our troops home would allow them to be stationed along the southern border where they could stop the 2 million people crossing the border illegally.
Next, Social Security and Medicare. Combined they cost slightly over $1.1 trillion. In order to balance the budget, and fund any other government programs, Social Security and Medicare will have to be cut. This means the retirement age will have to increase, COLA’s ended, copays on Medicare raised, disability insurance dramatically reduced or eliminated. Plus cuts to benefits. A 20% cut in Social Security and Medicare spending will leave $200 billion to fund the rest of the federal government.
In an ideal world, entire departments will be eliminated and their functions assumed by state and local governments or ended. Candidates for elimination include the Departments of Education, Labor, Energy, Commerce, Agriculture, Health and Human Services, and HUD. Off budget agencies such as REA, TVA, Fannie Mae, Freddie Mac should be privatized. Amtrak, the Post Office, and General Motors should also be privatized.
Many government agencies could be funded through user fees in order to remove the burden from the taxpayer - FAA, Army Corps of Engineers, Customs Service, National Forest Service.
Other agencies should be dramatically downsized. For example budget for the Department of State in 2010 was $16.4 billion. In 2002 it was $8.2 billion. What is State doing that we need to double spending in 8 years? Do we need embassies in every country in the world? This budget should be slashed to 2002 levels or below.
If we don’t take draconian action to bring spending in line with revenues, we do face a crash that will bring down the nation and destroy what is left of our liberty.