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Author Topic: The Debt Crisis . . . Whose fault? And how do we fix it? (PT, PF)  (Read 30683 times)
indianasmith
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« on: March 18, 2011, 08:25:04 PM »

    Several of our discussions have edged around this issue, but I want to drag it out into the open. I'd love to see our members' perspectives on this.  I welcome any and all input, but let's try to keep it civil.  I want to learn by hearing different perspectives, not yell at each other till we're all mad.  The fact that we've moved to "Members Only" posting (Thank you, Andrew!) should keep the one-shot flamers at bay - or at least force them to join up and play by the rules!  Not that I'm looking for universal agreement, only common civility.

OK, first, let me throw down some facts.

Our national debt is currently edging towards $15 TRILLION.  That number is unimaginably huge!  I was once told the best way to visualize a trillion is as follows: take a $100 bill and lay it flat on the ground.  Stack more and more $100 bills on top of it, all flat and neatly pressed.  When that stack is 7 1/2 miles high, you have reached $1 Trillion dollars.  Do the math.  We OWE over 100 miles of stacked flat $100 bills!

More facts:  40% of every dollar we spend right now is borrowed.

In Fiscal Year 2007, our annual budget deficit stood at $167 Billion.  That's how much more we were spending than we took in for that calendar year.  Now, remember, that is five years into Afghanistan and four years into Iraq.  That was also, for what it's worth, the last year we operated on a budget drafted by a Republican controlled Congress.  The Democrats were sworn in that January, and have written the budget ever since.

Last month - February 2011 - our MONTHLY budget deficit stood at 227 billion dollars!  We overspent more in a single month than we did in the entire fiscal year 2007!  The annual budget deficit stands in excess of 1 TRILLION  - not just for 2010, but according to the Congressional Budget Office, we will be running annual trillion dollar deficits for as far as the eye can see, unless our spending habits drastically change. Congress' solution?  Raise our debt ceiling so we can borrow EVEN MORE.

First of all, how on EARTH can ANYONE in their right mind POSSIBLY believe this is good for America? No household could possibly maintain itself with those kind of spending habits!  Yet we somehow think our government can do it indefinitely?   We are mortgaging the future of our grandchildren and great-grandchildren . . . for WHAT?

    Now - who is to blame?  First of all, US.  Every American who votes, and even more so, all those who don't.  We keep buying into the promises of politicians who pledge to GIVE us this or that if we elect them.  Government can NEVER give anything to anyone without first taking it from someone else, and that's a fact, pure and simple.  Yet we keep voting for politicians who promise to give us this or that for FREE - and we buy it, again and again.  Plato wrote 2400 years ago that this was the greatest single weakness of democracy - politicians use public funds to buy votes, and eventually create a vicious cycle that ends in bankruptcy.

   Secondly, the Democratic Party.  There is not even a pretense of fiscal discipline on the left.  Every single Democratic policy seems to come down to more spending, more taxation, and more power being concentrated in the hands of the government.  More programs, more entitlements, more freedoms lost, and MUCH more money  spent.  Free child care, free health care, free pet care, free drug rehab, free housing, free medicines, free Viagra, free whatever the candidate thinks the audience would like to get for free!  Just as long as they can keep getting elected so they can raise taxes so they can spend more money so they can keep getting elected!  And if someone DARES propose to cut some program they created, why, HE HATES THE CHILDREN!!! HE HATES THE ELDERLY!!! HE HATES THE PLANET!!!!  And the masses say "Baaa-aa-aah!" and run the evil monster out of town.  Don't believe me?  Read the figures above again. There has been NO pretense of any kind of fiscal discipline since Jan. 2007.


   Next, the Republicans.  While they spend at a less accelerated rate than Democrats, as a rule, they still promise too much and spend too much.  Not just on wars, either.  I am a big fan of our military, and I am one of the few who actually believes that going into Afghanistan and then Iraq was the correct and logical step to take after 9/11.  But even allowing for military ventures, the Republicans still spent at ridiculous levels when they controlled Congress for most of the Bush years.  That has got to stop.
I do believe that there are distinct differences between the two parties, and frankly, I doubt I will EVER vote for a Democratic presidential candidate for many, many reasons.  But the Republican leadership needs to wake up, smell the coffee, and propose some serious and meaningful cuts in spending or they will be facing a major rebellion.  My only fear is that such a move next year will just split the party and put Obama in for another four years - and I honestly don't think American can EVER recover from another four years of spending at this level.  We will see a currency collapse and an economic catastrophe that will make the Great Depression look like a walk in the park if we keep borrowing and spending like we are now.

SOLUTIONS: That's gonna be the tough part.  They are out there, but none of them are pretty, and none of them are pleasant.  In fact, they are gonna be a lot like kicking a heroin, alcohol, and cigarette addiction simultaneously - COLD TURKEY!  First, a big mental adjustment - the entitlement mentality has to be shaken once and for all.  Period.  Government exists to protect our lives, liberty, and property.  "To secure these rights, governments are institued among men . . ." according to Jefferson.  Not to pay for your house, your car, your kids, or your medicines.  Those things are called the responsibilities of adulthood.  We need to stop looking at government as a great big warm tit that secretes sweet milk on demand and start seeing it as an armed guard, up on the ramparts, keeping the bad guys at bay.  We wouldn't want that guard to buy all our groceries and run our lives for us - that's not his job.  Neither is it the government's.

  Let's start with Social Security.  When it was created, the benefits kicked in at age 65 - but the average life span of the average American was only 58!  That guaranteed perpetual solvency, because half the contributors would die before receiving a dime in benefits, meaning the lucky survivors would always have fund to draw benefits from.  Our average life span has increased by nearly 20 years, but we have LOWERED the retirement age!  That, on top of the changing demographics which now guarantee that for the next 30 years there will be a larger retired population than there will be working population, have created a situation where bankruptcy is guaranteed.  So what's the fix?  Twofold - first, raise the age at which benefits kick in to 70.  Those who have planned well can still retire at 65, or 60, or 30 if they are able. The rest, who haven't saved as they should, will have to work a few years longer.  Second, start means testing the whole program.  Why should a retired investment banker with a multimillion dollar portfolio be getting a monthly check from the government?  At the very least, let the benefits be cut off once a person has gotten back everything they put into the system.

  Secondly, Medicare and Medicaid.  I am not against there being a safety net, but it should be exactly that - a safety net, not a hammock.  Use the FBI to crack down of fraudulent claims, which some say account for about a third of the program's expenditures.  Use Welfare programs to care for the truly poor and needy at a level that ensures survival, but not comfort.  If poverty is made unpleasant, people will work harder at not being poor!  I've been in the third world, where people sell their children into prostitution at age 7 just to feed themselves.  I'm not saying America doesn't have poverty - obviously we do - but we are the only country I know of where our poor have a significant problem with obesity.  Link all welfare programs to either work or education - if someone is collecting our tax money, they better be working at something to get off the dole, or getting an education so that they can improve themselves.

  Thirdly, give the President a line item veto.  Over 45 State governors have it, and it can be used to cut billions of dollars of pork out of the budget every year.  That means a constitutional amendment, of course, but let's do it.  Let's push for it.  And let Presidents of BOTH parties have it.  Then some of the more ridiculous things government spends our good money on can be taken out of the equation.

  Fourth - NO NEW ENTITLEMENTS! We cannot afford the ones we already have, and frankly, most entitlement spending is simply giving government money to one class of citizen or another to buy their votes.  Economists have been telling us for years that Medicare, Medicaid, and Social Security will all go bankrupt in the first half of this century unless major reforms are adapted.  So how have the last two administrations dealt with that dilemma?  By creating more entitlements!  First the Medicare Prescription Drug benefit for seniors, now the Obama Health Care Act, or whatever its proper name is.  So far, all it's done for me is make my private insurance rates go up by nearly $250 a month.  Thanks, Mr. President.  Really appreciate it!  And what do we really get?  Is anyone really happy or better off now that the bill passed?  Yet there is another trillion, at least, and maybe more.  For the record, no entitlement has ever come in under budget, and none has kept its benefits stable.  That's the whole problem in making the government our provider.  Once that provision is started, it can never be stopped or diminished, because its recipients will hang any politician who tries.

Now,  what things are NOT the solution?  Number one, raising taxes.  Raising taxes on ANYONE.  As Margaret Thatcher famously said, the problem with socialism is that eventually you run out of other people's money.  Right now, the government takes 35% of the income from the richest Americans in income taxes ALONE.  Then most states take another 10% - 17% in State income taxes.  Not to mention sales taxes, property taxes, and so on ad infinitum.  In socialist countries in Europe, the wealthy pay up to 90% of their income in taxes!  First of all, I find it immoral and downright criminal for ANY government to take half of what someone makes.   I don't care how rich they are.  I don't care if they are Bill Gates.  Taking half of someone's earnings is theft, pure and simple.  And, if Democrats get their way and restore the estate tax, that means that whatever is left of family fortunes for the well-to-do will be taxed AGAIN, when they die, at a rate of 40 %!!!  How is that fair?  How is that right?
  Even if you hate the rich and think they should be ground up into free hamburger for the unemployed, there is another problem with raising taxes.  Government won't use it to pay debt.  They never do.  They use it to create more programs, more departments, more laws, and more giveaways so they can get re-elected.  Look at it this way: you cannot lose weight by eating more.  At some point, you HAVE to start cutting back on portions.  Our government needs to go on a starvation diet in order to get its priorities straightened out.   Dealing with massive government spending by raising taxes is like fighting a fire by spraying gasoline on it.   This country lasted for over 150 years and went through numerous economic recessions without the Government stepping in and intervening.  And you know what?  We didn't have universal starvation and deprivation.  People went through hard times, they adapted, they overcame, and good times came around again, without the government entering into the picture at all.  Bottom line is, it's time to starve the beast, folks.  Before it devours us all.

    Sorry for the long post.  It's your turn now.
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« Reply #1 on: March 18, 2011, 08:36:53 PM »

Whose fault is it: Doggett
How do we fix it: We beat the crap out of him.

Problem Solved. .. .
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« Reply #2 on: March 18, 2011, 08:50:57 PM »

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« Reply #3 on: March 18, 2011, 09:54:13 PM »

The Republicans.  While they spend at a less accelerated rate than Democrats, as a rule, they still promise too much and spend too much.  Not just on wars, either.  I am a big fan of our military, and I am one of the few who actually believes that going into Afghanistan and then Iraq was the correct and logical step to take after 9/11.  But even allowing for military ventures, the Republicans still spent at ridiculous levels when they controlled Congress for most of the Bush years.  That has got to stop.

Not a solution in itself, but a possible explanation as to our military funding issue.

With the military aspect of this thing, it seems Iraq is the biggest money pit.  Our lack of manpower and equipment has a lot to do with it, as whatever we can spare w\o compromising our own Stateside security has to be divided with the Afghan theatre.

Now, as a historical look back, Clinton is responsible for part of it.  His decision to reduce our 2+million troops to what we have now (with equal reduction in weapons and equipment) is partially responsible for this overextension of our forces. That is why we are now spending more, because we've been there too long. Time IS money.

Had we had the proper numbers for Iraq (500,000+) we'd have trained the Iraqi security forces quicker, established border security, and had more men to deal with the internal insurgency, which would have died out sooner as a result of better border security.

The other part of the problem? Starting a war on two fronts. War costs. We planned for the blitz, but not the long term plans for stability and internal security. Going into
 battle w\o a plan truly costs.
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« Reply #4 on: March 18, 2011, 09:57:42 PM »

Whose fault is it: Doggett
How do we fix it: We beat the crap out of him.

Problem Solved. .. .

Doggett is more powerful than you could ever imagine.  TeddyR
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« Reply #5 on: March 18, 2011, 10:07:56 PM »

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« Reply #6 on: March 18, 2011, 10:18:04 PM »




You're my Zira.   TeddyR

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« Reply #7 on: March 18, 2011, 10:31:53 PM »

The two wars over seas, that the U.S. shouldn't have got involved in, certainly didn't help the debt.


As for a solution I honestly don't know how to fix it except to wait it out and hope for the best.
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« Reply #8 on: March 18, 2011, 10:48:52 PM »

Quote from Bob: "The two wars over seas, that the U.S. shouldn't have got involved in, certainly didn't help the debt."

War came to us, Bob.

The Afghans sheltered bin Laden and his goons and let them train for their attacks on us in their country.  They were given a chance to give him up, and they refused.  That war was absolutely necessary and just.  Having run the Taliban out and scattered and destroyed much of Al Qaeda, we have no choice but to stabilize the place before we leave.  That's a very tough proposition, considering the country has zero infrastructure and more than half the population are barbaric religious fanatics.  What are the alternatives?  Leave and let the bad guys take the country back, and we'll have to do it all over again at some point.  Or just kill'em all - which would be immoral and unjust and make us no better than those we went in to bring to justice.

Iraq - I understand the arguments against going in, but I still think that it was something we had to do.  Saddam was a sworn enemy of the USA, he had violated every single term of the armistice that ended the first Gulf War, and he had made and used WMD's in the past and gave every evidence of still having them.  Even if he didn't have significant stockpiles, he still had the scientists and the programs to make them.  By misusing humanitarian relief and bribing the French and the Russians with oil, he would have had the UN inspectors permanently gone in another year or two.  True, he and bin Laden hated each other, but that wouldn't have kept him from using bin Laden to strike at the "Great Satan."  One five gallon bucket of anthrax in the New York Subway system could easily kill 100,000 Americans - and envelopes of anthrax were showing up all over the country!

In place of that nightmare scenario, we now have an Iraq that is a struggling young democracy.  It isn't all we wish it could be, but it is better than what it was, and improving daily.  You never hear about it in the media because no one wanted to give GWB credit for ANYTHING good, but the fact is the war in Iraq was won when Obama took office.  Now it's just a matter of drawing down and letting the Iraqis take the reins.  We have done the one thing  that Al Qaeda feared the most -- we have shown that an Arabic, Muslim country CAN become a working democracy.  And look at the results now!  Again, no one wants to give GWB credit, but much of what is going on in the Middle East right now is a result of his "democracy initiative."  We do not know what form it will finally take, and there are many ways in which it could go very horribly wrong, but for the moment, there is a real drive for democracy in the Middle East . . . and every American who served in Iraq can take some small credit for that.

Thank you very much for your response, and karma to all who posted.  Even AHD with his funny monkey pictures.

And I'm selling tickets to the Ghouck-Doggett showdown!
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« Reply #9 on: March 19, 2011, 12:34:58 AM »


Doggett is more powerful than you could ever imagine.  TeddyR

Only if we count body odor and chronic flatulence as superpowers. . .
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« Reply #10 on: March 19, 2011, 07:54:18 AM »

Quote from: indianasmith
Use Welfare programs to care for the truly poor and needy at a level that ensures survival, but not comfort.  If poverty is made unpleasant, people will work harder at not being poor!  I've been in the third world, where people sell their children into prostitution at age 7 just to feed themselves.

So, as someone with strong Christian values, you say that poverty is pleasant right now and that there should be more child prostitutes in the U.S., thereby proving their parents' welfare worthiness?  More children suffering here would be a good thing, I guess... so the parents might have incentive to work harder at not being poor by choice, because I understand it's very lucrative.  It's particularly awesome wondering how you can acquire toiletries while on welfare, to be presentable for potential interviews and such.  In addition, not having dinner every night or breakfast every morning really builds character!

I just want to be sure I understand your angle here.

Should we ensure that people who meet your particular standards of poverty are given furniture with splinters and/or nails to make them less comfortable in whatever shelter they've been lucky enough to keep?  You know, so they're not "enjoying" their extended time of unemployment too much.  It'd be incentive not to sit around in the lap of luxury, watching soaps and eating bonbons.  That's why poor people are so fat, I'm sure, all the rich foods you can buy with an EBT card and just lay around eating all month.  Then, when welfare and unemployment run out, throw them on the street because they're clearly defective.  Hell, they probably just don't want to work at all, and therefore are not worthy of food or shelter.  Who needs people like that weighing the rest of us down?  Dead weight... screw 'em for not getting hired!  Maybe they just weren't suffering enough.
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« Reply #11 on: March 19, 2011, 09:57:04 AM »

You misrepresent me altogether.  I don't hate the poor; I've been poor for a good part of my life.    My point is twofold:
First of all, if you subsidize something, you get more of it.  The government's war on poverty has spent about 2 trillion dollars since the 1960's without significantly reducing poverty in America.  So obviously something in the "government as benefactor" approach is deeply flawed.  What we have done is to create a permanent welfare class. The Welfare Reform Act of the 1990's did a great deal to ameliorate this by linking welfare to work and curbing some of the  worst abuses.  However, the current administration has undone nearly all the reforms that were enacted 15 years ago, and we're back to where we started - paying poor people to remain poor without equipping them to better themselves.
  My point in the section you quoted is not that we need more starvation and child prostitution in America, and I think you know that.  My point was that our poor are amazingly well off by world standards, enough so that many of them seem to have zero motivation to improve themselves.
  It's a broken system, and I don't know how to fix it. But I do know that what we are doing right now does not really work.

Thanks for your response, even if it was laced with sarcasm.
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« Reply #12 on: March 19, 2011, 10:00:24 AM »




Quote
Iraq - I understand the arguments against going in, but I still think that it was something we had to do.   


We HAD to? really?

It's very easy for me to imagine that we coul have said this guy isn't worth one american life and focused on homeland security. It's easy because it's exactly what we did after the gulf war.

Quote
One five gallon bucket of anthrax in the New York Subway system could easily kill 100,000 Americans - and envelopes of anthrax were showing up all over the country!


are you saying Saddam hussein mailed those???


Quote
You never hear about it in the media because no one wanted to give GWB credit for ANYTHING good, but the fact is the war in Iraq was won when Obama took office.



Does FOX news do alot of stories about Iraq??  Theres not alot going on there.


Quote
We have done the one thing  that Al Qaeda feared the most -- we have shown that an Arabic, Muslim country CAN become a working democracy.


so why aren't al queda declaring jihad on tunisia and Egypt? 


Our military empire is the #1 source of our problems. It makes us vulnerable to terrorist attacks from peoples who don't want us there, it costs a ton and the money is spent in other countries and the obscene profts go to well connected american corporations or peoples in other countries.

and we aren't the world s police and hae no business trying act like we are.


« Last Edit: March 19, 2011, 10:17:59 AM by lester1/2jr » Logged
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« Reply #13 on: March 19, 2011, 11:18:21 AM »




Ape will not f**k up ape!  Thumbup

 A BIG war-worked with WW2-got us outta the Great Depression!
Hmmm.....mebbe by not paying our worthless leaders (and I use that term loosely) so much cash. We pay them to milk us...WTF? The poor and middle class support this country-and the rich reap the benefits....ie-Gov.Dickhead Snyder. (he's Michigan's currant leech in charge.)
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« Reply #14 on: March 19, 2011, 01:29:54 PM »

Lester - I don't believe in isolationism.  Period.  Either America acts as the global cop, or the globe doesn't have one.  We don't have to intervene everywhere, every time, but I do believe there are cases where intervention is called for and necessary.

You are willing to let evil win - if you'd lived in World War II, I imagine that you would have said that the Holocaust was Germany's internal problem and we had no business stepping in.  The Blitzkrieg would have merited a yawn, and a statement to the effect that it was Europe's problem.  Japan's rape of China?   Not our business.

War is hell.  I recognize that, as does any person with intelligence.  But a peace that lets evil rule the field unopposed is even worse.  You say China doesn't face the problems we do - that's true.  That's because China is an evil dictatorship that doesn't allow its own people any freedom, so why promote it for others?

In every age, it falls on some nation to carry the torch for liberty and freedom.  Yeah, that sounds corny as all get out, I know.  But I believe that America stands for something.  For all its flaws, it remains what Lincoln called it - "the last best hope of man on earth."  If all our leaders followed your philosophy, America would stand for nothing and mean nothing.
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