Recently we wrote on the so called Fiscal Cliff facing America’s fiscal position. Taxes would go up and significant budget cuts and the budgetary deficit still being there. Not a pretty picture.
While the numbers and line items are bigger, the US Government works pretty much as a household budget. Add up its sources of revenues, deduct its spending and put some aside for a rainy day. Except that we think you should pay yourself first and put something aside for a rainy day first.
So what is the problem? To pay for its spending, the US Government needs to borrow money. Significant amounts of money. Can the US Government keep borrowing? Yes, but that borrowing needs to be paid some day. Assuming that the US Government does not just want to print money to pay off this accumulated debt, let’s look at some potential options.
What are the goals? First dream the dream – balanced budget, full employment, a new Google, Facebook or Microsoft every year!
Then write down the goals: balance the budget, avoid recession, and avoid inflation.
These goals seem realistic…states are forced to down and other countries have done it.
These goals are measurable if too fudgeable. But let’s assume that the offices in place to measure these goals will play fair.
Some basic numbers:
Size of US Economy: 15 Trillion+
Size of US Deficit: 1.2 Trillion +
Number of unemployed people: 12 million
Time to build some bridges:
- Decriminalization, tax and control substance such as alcohol, beer, tobacco, hemp and some other recreational and medical narcotics
- National sales tax to fund social security and allow for income taxes to be flattened and cut base free, then 20% for business and people
- Carbon fee of $1+ per gallon on ALL imported oils
- “LLL” – control lawsuits, lawyers and lobbyists as they put a tremendous burden on society – this will require tort, campaign financing and lobbyist regulation that defends some of these groups
- Enforce driving and firearm permits and regulation
- Scale back the size of government and bureaucracy by 5% per year and adjust pensions for the new reality
- Create a Marshall plan for citizen business with small loans available from existing bank for all qualified applicants – university, community college or trade with business plan and a second person guaranteeing means qualified – like getting a passport! The amounts do not have to be large, but they need to be available. $15,000 can be a good starting point.
There will be much naysaying. There will be gnashing of teeth. Entrenched groups will cry out. But the President is smart. He has shown that he can use social media.
He will have to reach out to reasonable people across the aisle.
He will have to reach out to the 33% of the population that do not bother to vote.
He will have to reach out to explain why this is better for today’s children and grandchildren
He will have to reach out and explain why this is what will keep America safe: Prosperity and confidence in a system that is working….not walls and guards.
And while a successful America can be annoying to parts of the world a faltering America is much more worrisome.
Get back to work America, land of the free and the home of the brave!