S&P Chief Looks at Entitlement Reform to Resolve Debt Downgrade (Freeloading Nation)

Fox News ^ | 8/7/2011 | fox news

[tobyhill]

The United States is no longer considered among the safest financial risks in the world after Standard & Poors downgraded the U.S. credit rating, but the head of the team that made the change says entitlement reform would go a long way to restoring the country's status.

David Beers, global head of sovereign and international public finance ratings at S&P, told "Fox News Sunday" that governments and Congresses come and go, but spending on entitlements persistently drags U.S. debt further into the red.

"The key thing is, yes, entitlement reform is important because entitlements are the biggest component of spending, and the part of spending where the cost pressures are greatest," Beers said.

Beers said he faults both Congress and the Obama administration for "the difficulty of all sides in finding a consensus around fiscal policy choices" but any agreement must command the support from both political parties in order to be durable.

S&P lowered the U.S. outlook on Friday evening, saying that political gridlock has prevented the U.S. from reaching a plausible solution to getting its financial house in order. It remarked that the agreement last week to reduce the nation's debt by at least $2.1 trillion over the next 10 years "fell well short" of comprehensive reforms that some had advocated.

It added that it foresees the select congressional committee to be organized to find additional savings will likely avoid raising taxes or doing any significant entitlement reform.

"It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability," the announcement reads.

[_a_0_0_]

obamacare.

period, end of story.

[unixfox]

More committees and more speeches by Zer0 will not fix anything.

It's actually pretty simple to fix.

1. Implement a fair tax or flat tax. PERIOD
2. Stop building border fences and rebuilding in other countries and focus on our own.
3. Sell government assets that are not directly used by the government. i.e. millions of acres of real estate and buildings that aren't used.
4. Eliminate ALL departments that have nothing to do with the security and or well being of this country. i.e. EPA, DOE, (I could go on and on...)
5. Eliminate Obamacare. NOW.
6. Cut government spending by 25%. IMMEDIATELY.

[ken21]

the economy would boom with the election of sarah palin.

[tobyhill]

not only Obamacare but also the 53% on Medicaid, Food Stamps, Section 8, Welfare, Subsidized Child Care, Subsidized Transportation, etc.

[_a_0_0_]

zerocare put us over the edge for good.

[tobyhill]

It's definitely the one thing that is killing business right now. If businesses have a choice between paying $4,000 a year in paying for employee's healthcare, paying a $2,000 fine or just not hiring someone then my bet would be on not hiring someone.

[kabar]

Medicare and Medicaid are,by far, the biggest drivers of our debt and the greatest threat to our future.

[_a_0_0_]

thank you. kill business, kill "revenue." kill "revenue", kill creditworthiness.

It also kills markets, the costs of doing which are incalculable.

Then too is the cost of Divine Judgment, which is also incalculable.

[trebb]

The S&P Chief is looking to have its members’ houses firebombed by the “tolerant left” with hate speech like that...

[ladyjane]

If you believe our government statistics you are gullible.

Why do you think they never list food stamps, subsidized and free housing, welfare, free cell phones, free cars and all the other goodies being showered on illegals and non-productive citizens?

You know those costs are buried and nobody has the courage to even mention them.

[tobyhill]

Since 53% of our population (lot higher counting illegals) are currently on Medicaid, I would have to say that this CBO baseline on expected cost is too low on the Medicaid line.

[madinmadtown]

“Entitlements” were originally perks that came with nobility, not noble actions, but noble standing. Being entitled meant being one of the favored few of royal whimsy. The entire concept of entitlement was that only a few would benefit from special treatment.
Inherently broad “entitlements” are destined to fail because they create a special standing or favor for not a few, but for many. We cannot have “entitlements” for everyone...it is a doomed concept even theoretically, practically it is a recipe for a broad and sustained disaster.

[SunkenCiv]

Thanks tobyhill.

...the head of the team that made the change says entitlement reform would go a long way to restoring the country's status... governments and Congresses come and go, but spending on entitlements persistently drags U.S. debt further into the red.

[kabar]

60 million are on Medicaid and 18 million more will be added thru Obamacare. That is not 53% of our 310 million population, but it is getting there.

[tobyhill]

My bad. I meant 53 million as of 2009. It is probably 60 million now with 30 million more on the way when Obamacare kicks in.

[Condor51]

Here's how to solve the Deficit and Debi Crisis in a few easy steps. And all are the new fangled 'entitlements', or, (cough-BS) 'Rights' that started with LBJ in 1965.

1. Repeal / abolish Medicaid. That was a gift, oops - Vote buying scam, of LBJ's in 1965 to get, oops - 'buy', votes of "The Poor". It is a huge chunk of the Red Ink on State and Federal ledgers and why most of our '57 states'(/s) are broke.

2. Repeal / Eliminate SSI payments. 'Supplemental Income' was not part of the original Social Security plan. And there is no logical reason why we should be 'giving' Junkies and Alcoholics money each month simply because they are, Junkies and Alcoholics. To do so borders on insane.

3. Eliminate these insane 'Extended' (and extended³) Unemployment Benefits. 13 Weeks is 'paid for'. From week 14 to 99 it's 'FREE Money'. Series, 85 Weeks of money for not working? ... that's nutz and a Vote Buying Scam.

4. Eliminate or drastically tighten how one gets Food Stamps. 48% of 'Americans' now get Food Stamps, that's nuts. No way that many should be able to qualify for them. If you have to eat Baloney for dinner too bad, try fried Spam, it's pretty good.

5. eliminate that new entitlement or 'right' of Free Food in Public Schools. It's not just breakfast, or lunch, anymore, it's THREE Meals a day. What genius came up with THAT idea!

6. Eliminate the 'entitlement' of Generational Welfare. If Grandma was on Welfare, your Mother was on welfare, and now you, a 15 yo kid - with a kid - needs welfare something is FUBAR. Especially when NONE OF YOU were ever married to whoo got you pregnant. You want to breed a herd of children, fine. Do it on your own dime, get married and/or make the Sperm Donors pay SUPPORT. Don't go looking for the state welfare office, it's CLOSED.

7. Eliminate Head Start - period. that's Black Hole that's sucked Tens (Hundreds?) of Billions in and has showed ZERO results. Jamal still drops out of school at 16 (yeah 4th grade is hard) and he still winds up in Prison.

8. Eliminate the new 'entitlement' (right) called CHIPS. For one a 28 year old is not a 'child'. And 2nd, should pay for his/her own insurance. In short - undo everything Pelosi did with it.

9. Eliminate the 'entitlement' (right) Section 8 Housing. If you can only afford to live in a $600 a month apartment. Don't expect to move into a $1,200 (or more) a month apartment with 'the government giving you' the Free Money for the extra rent. If that means it's in a crappy neighborhood, too bad.

10. Eliminate the 'entitlement' (right) to: a FREE Phone, FREE Cable, FREE Computer. Those are privileges, not 'rights' and nobody is "entitled" to have them at the cost to others.

There it is. And nobody's Social Security or Medicare, which YOU PAID INTO AND FOR, will get reduced or be affected. Basically it will be a trip 'Back From This Insane Present', to say ... 1958, when everyone pretty much pulled their own weight. And when one was in need, TRUE NEED, turned to Family and CHURCH for 'help'. Not to the crooks in D.C. for some 'right'.

And 'the rich' won't have to be taxed to death. That's their 'Right'.

[JustTheTruth]

Won’t work. The poor will still be hospitalized, the hospitals will have to dramatically jack up YOUR private insurance rates to pay for them. Medicare is terminally ill and can’t cover growing numbers of baby boomer retirees without large tax increases. People bought into govt lies that govt would care for them, and so they didn’t save for retirement. It is musical chairs, and the music has stopped. This does not have a happy ending.