When Democrats took control of Congress in 2006, they went on to raise our debt ceiling six times. When they began it was $8.965 trillion and currently it is $14.294 trillion. The big problem we are having is every time the alarm rings they simply ignore it, and refuse to make the fundamental changes necessary to get things back on track. by Russell W. Dickson
(libertarian)
Tuesday, March 29, 2011
The U.S. Government is supposed to have a system of checks and balances built into it that warn us when financially things go wrong, like when the government goes on a spending spree. Our debt limit is supposed to be the most serious indicator of a problem.
According to usnews.com, when Democrats took control of Congress in 2006, they went on to raise our debt ceiling six times. When they began it was $8.965 trillion and currently it is $14.294 trillion. The big problem we are having is every time the alarm rings they simply ignore it, and refuse to make the fundamental changes necessary to get things back on track.
Before we begin considering an increase to the debt ceiling, we must realize that simply refusing to raise the ceiling higher will not cause us to default on public debt. The Obama administration is wrong when it insists that if we don't raise the debt ceiling we will "precipitate a default" and "have catastrophic economic consequences." The government is still able to collect and spend money when the ceiling has been reached. The Heritage Foundation points out; the government will have more than enough revenue to pay interest on the debt.
Reaching the debt ceiling would not be catastrophic, nor would taking the time to couple raising the debt limit with common-sense policy changes aimed at getting our fiscal house in order. What would be catastrophic is a continuation of the status quo.
We need to stop the empty rhetoric, and ambiguity about what strategic plans we need to change course. We have to confront the gigantic financial burden facing our nation. Unfortunately, that means we must to reform entitlements, reduce discretionary spending, and enact legislative changes that would reign in government spending.
Scribd.com states that, spending on entitlements (i.e., Medicaid, Medicare, and Social Security) has outpaced government revenues. In other words, we spend more than we make. Experts at politifi.com say, that even if we slash every discretionary spending program, including defense, we would still run a budget deficit. We can't even think about a debt ceiling until we address the 800 lb. gorilla in the room, i.e. entitlements. We need to revamp our entitlements but not get rid of them, for the obvious reason that many retired Americans would be homeless without them. The biggest money sucker according to cnsnews.com is discretionary spending, and it is the first thing that needs to be addressed. Since 2001, discretionary spending has increased by 60 percent.
We need to create and enact the right policies for change, and then lock them in. It is critical that we root out the cause of the problem, spending. If we control spending with strong policy future Congresses will not be able to recklessly spend the public's money any longer.
Bloomberg.com says that, By the end of the year, our national debt will exceed our G.D.P (gross domestic product). As evident in Greece, Ireland, and Portugal, this is not a small thing. A country stymied with debt cannot survive, and we cannot continue to keep forcing future generations to pick up the tab.
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