England cut spending modestly and it is called “austerity”. Commenters fret that it could HAPPEN here. Well, let’s hope so!
Citi strategist Willem Buiter, alongside Howard Davies chairman of the London School of Economics, said that “savage austerity” is in the US’ future. “The only question was really the timing and the composition.”
Obama has borrowed 3 trillion dollars in 20 months. So to get back to even we need to cut spending by that much, or raise government revenues by that much. Or some combination there of.
No doubt Democrats hope they can turn this “austerity” into austerity for citizens through higher taxes to pay for Democrats power basis. We maybe stupid enough to bite a that. Some commenters on this blog seem eager for it. Establishment Republicans differ only in that they would be happy to slow the rate of growth of government, and then raise taxes.
The right answer, of course, is to get government back to where it belongs… doing hardly anything. In other words… cut spending. Austerity for the government and those who leach on the rest of us through it.
But wouldn’t that entail economic disaster?? Why would you say that? Money government spends is taken from others that would use it in other ways. The only real concern is about removing the decifit (which is newly printed money) from the economy. But the deficit isn’t cost free. Inflation and debt service aren’t “free”.
You can’t throw a dart at the government organization chart without hitting something we can do without. So start throwing darts! Get rid of the Dept of Education, Labor, Commerce, NASA. I’m happy to get rid of wars too. Bring them home. Promise bigger bombs if those countries act up again.
Apparently, Medicare will be the entire US budget shortly. It is clearly unsustainable. Are “old” people, many of whom are Tea Party members, willing to cough up an extra few grand a year to actually contribute to their own health care? I hope so, because that is what is needed, and that is what is fair.
Commenter Carl will say that anybody that proposes this will be unelected promptly. So be it. It needs to be done. And if presented clearly and explained, I suspect most people will understand changes are necessary. And if not done to favor political special interests, people will be more inclined to take the hits.
So do we have it in us? About half of us do not. They are called Democrats. They are union thugs, public sector employees, the stupid young, and the just plain stupid. Will they doom us? Quite likely.
I hope not. But if France and England are clues, our future isn’t bright. Instead of joining together to put government back in its place, we seem more likely to get the honor of paying public sector union employees to strike, light fires and hold the nation hostage.
The right path forward for the nation is clear. The only question is if it is too late to put the special interests that hold us hostage back in the hole they emerged from.