Sunday, March 1, 2015

Unsustainable

I have been thinking this for a long time, certainly since sometime in the Dubya Adminstration. The U.S. is spending money it doesn't have. The U.S. has an insurmountable debt. The U.S. has an entitlement class that is currently 50% of the population. The U.S. balance of trade since 1950 looks like this:

This is unsustainable.

Whatever other problems we have, Islamic terrorism, the rise of the surveillance state, uncontrolled immigration, the unchecked power of the Executive branch, it is the purely mathematical equations of the economy that are going to break us.

The national debt is $18 trillion and the current unfunded liability of the United States is almost $100 trillion. Here's the running clock. Go and look at the numbers, watch it for 30 seconds or so, I'll wait.

Politicians don't talk about it because no one wants to face it. Nobody is seriously talking about fixing the problem. We might could still prevent a total catastrophe, I'm not sure if it's still possible, but we aren't going to, we aren't even going to try. We're continuing to pretend that the U.S. can't fail, is too big to fail, that someone will magically solve this problem and life will continue like it has for the last 70 years.

It could be fixed. Balance the budget this year. Stop spending money that doesn't exist. Every federal department gets the same percentage of the budget as they do now, but the actual amounts drops so that expenditures match collections. Next year it drops to 5% below collections and that 5% goes to start paying off the debt. The year after, 10%, where it stays until we have reconciled the debt. After that, it drops back to 5%, where we begin to build a treasury.

At some point, if Congress want to start eliminating expenditures and rearranging the way money is allocated, well okay, do your jobs. But the total remains 10% below intake until there is no debt.

It will never happen.
I am perfectly happy to compromise and work with anybody: Republicans, Democrats, Libertarians - I'll work with Martians if - and the if is critical - they're willing to cut spending and reduce the debt.
--Ted Cruz



8 comments:

Old NFO said...

I agree with your premise. Sadly I doubt that anyone in either congress or the administration will do a damn thing to actually make this happen. They'll kick the can down the road and hope to be gone before the house of cards collapses...

WoFat said...

Politicians are know to lie. This administration makes the average lier look like a saint.

burt said...

The "penny plan" has been around for years - but has been ignored by both parties. Neither party is willing to say "no" to expenditures: it's all about buying votes.

If we can't find our way to freeze spending - FREEZE it - at current levels and then to cut it by 1% per year for at least the next 10 years, we are truly lost.

R.K. Brumbelow said...

And yet there are thousands (if not more) of Americans who would gladly come off entitlement/disability so as to return to work, but the government doesn't want them to and private individuals turn a blind eye to their plight.

Makes your complaints about entitlement ring pretty hollow, more like a nimby situation.

Oh well.

Divemedic said...

Mandatory spending includes entitlements like Medicare, Social Security, VA benefits, etc. which are REQUIRED by law to be paid. Interest on the debt must also be paid. The money that must be paid totals about $2.5 trillion a year. You get that? Social Security, interest on the debt, Medicare, and the like already total more than we take in through taxes.

No balancing of the budget can happen without cuts to social security and medicare. THAT will never happen. We are all riding this ship do the bottom.

Michael said...

I find it hard to believe that we could not find cuts in other places and save Social Security and Medicare. For example, we give away boatloads of money to other countries in foreign aid, money we don't have! Thats like taking a loan out so you can donate to charity. A loan that your kids have to pay back even!

Goober said...

Michael you grossly underestimate the ss liability and far more grossly overestimate the amount of foreign aid.

We could cut EVERY SINGLE OTHER BUDGET ITEM, including military, welfare, ACA, foreign aid, etc, and still not have enough to cover the ss liability.

Get educated. Voters like you are the source of our problem. Stop being the source and start understanding the problem.

Goober said...

Michael you grossly underestimate the ss liability and far more grossly overestimate the amount of foreign aid.

We could cut EVERY SINGLE OTHER BUDGET ITEM, including military, welfare, ACA, foreign aid, etc, and still not have enough to cover the ss liability.

Get educated. Voters like you are the source of our problem. Stop being the source and start understanding the problem.