The BBA was part of cut, cap, and balance. Yes, it is a long process, but a journey of a thousand miles begins with one step.
I like her stress on a growing economy. Our revenues are in part lacking because we aren’t growing, many are unemployed and on public assistance - the latter, further draining the treasury.
Growing the economy does grow revenue, but that is not going to be done overnight either. Moreover, if we don't fix our structural problems associated with the entitlement programs, we will be no better off. 10,000 baby boomers are retiring every day and will continue to do for the next 20 years. By 2030 one in five residents of this country will be 65 and older, about twice what is now. And there will be two workers for every retiree compared to 3.3 today and 16 in 1950. This has major ramifications in terms of the entitlement program costs and our ability to support them.
Medicare already spends more than it receives in dedicated taxes and premium payments. As baby boomer retirees begin to flood the system, the impact will be felt by every other federal program:
• Currently, Medicare claims about 15 percent of federal nonentitlement tax dollars.
• By 2020, Medicare deficits will claim one in every five federal tax dollars that are not already dedicated to Medicare and Social Security.
• This means that in just 9 years the federal government will have to stop doing one in every five things it does today if taxes are to remain at their current level and projected Medicare benefits are paid on behalf of the disabled and the elderly.
• By 2030, the deficits in Medicare will claim one in every three general revenue dollars; by 2050, they will claim one in every two.
In concept she is obviously for balancing the budget. Even a law, if it were properly drafted. (Many versions are bad ones, and that is what Dems would go for.)
She was opposed to that bill because she opposed raising the debt ceiling. (She has the American people on her side on that one. The ignoramuses. /s)
Yes, it is extreme what would result. At the same time, she used that fact to point out how extreme our spending and borrowing are. After we pay a few “musts pay”, we are then having to borrow to pay for everything else. And it gets worse every day, not better.
Revenues and expenditures for people on government programs are a big part of it, too.
She is actually on to something...it wouldn’t take too long to begin to free up businesses to hire people and invest because everywhere she goes people in business tell her what is wrong and why they are frozen in place. The worst is Obamacare, then Dodd Frank, then taxes.
She said it will take a House, a 60 vote Senate, and a President to really go to town on the problems, quickly.
She’s right about that.
When I read this, Kabar, I’m reminded that we are so screwed under the present economic regime the government has created for us.
The only way to fix this is to massively cut regulations, and yes, taxes, especially for small business and individuals and let the economy grow. If the economy takes off, then overall revenues would take off. If overall revenues take off and we have a BBA then maybe we can start paying medical costs and living expenses for our growing elderly.
The only answer is to put people back t work earning a paycheck, making more money, and thus paying back into the system: Increased Social Security and Medicare payments by working folks will have a profound effect on your numbers.