For all the rhetoric and gloom and doom prophets that say we must spend our way back to prosperity, I say “Take your snake oil and hit the road!” It is time to approach our issues with the reasoned, thoughtful approach Americans are famous for, and finally solve things once and for all. And, in the meantime, prevent this from happening again.
I would like to present to you what I believe is the ONLY real solution and I hope you will join me in making it come to be a reality.
For far too long, we have been conditioned to think in certain terms with no regard to keeping our feet firmly planted on the ground. We talk about deficits, but not about our debt. We are told that our deficits are a small percentage of our GDP, so don't worry. One of my mentors many years ago told me, "Percentages lie, and liars use percentages." We must be concerned about our debt, as it will soon be unsustainable.
I have also been amazed over the last several years that we permit our government to toss around numbers in BILLIONS like a billion dollars is nothing. When in fact, Congress is spending someone else’s money and we need to regain control and put some common sense in place.
Not too long ago the clock that tracks the national debt of the United States of America actually ran out of digits because the our debt is too large to be displayed. The national debt of the US is approximately at $10 Trillion dollars. That would look like $10,000 Billion.
To keep this number in perspective, if you stacked the national debt up using $1 bills, the stack would go on for 468,000 miles. And we are talking about borrowing more, assuming we have takers who are interested in loaning us the money. If we don’t, then our plan is to print the money which opens up other issues.
It is a fact that we can no longer delude ourselves as Americans to think that Congress is capable of solving this problem without our intervention. WE THE PEOPLE must solve it, and we must demand action right now. We must make it mandatory or else it will never happen.
Here is what must be done to save our great nation from becoming an abject financial failure and destroying a critical component of what actually makes us the Land of the Free. The ideal of free enterprise is what has made America great. It has bettered the lives of more people throughout the world than can be counted. That coupled with a government for the people, by the people and of the people are what makes us an economic superstar.
I am of the opinion that “the people” have stopped showing up because they don’t feel their voices are heard. "The people" don;t know what to do to solve these problems. What I am completely certain of is that we must get “the people” back involved in order to get our government working again and to stop this impending colossal trainwreck.
So, here are the steps WE THE PEOPLE must take.
First, we must contact our representatives and demand they pass legislation to place an Amendment to our Constitution requiring a balanced budget before the people. The sole exception to be in times of war, that is declared by Congress. During these times, our government may issue bonds to generate the capital necessary to successfully prosecute the war if it is necessary. After the divisive attitudes towards our efforts in Iraq, we can no longer afford the War Powers Act to enable Congress to state that the President “got us into this mess” when in fact the declaration of war rests upon the shoulders of Congress. The American people have every right to expect our branches of government to actually fulfill their roles.
Secondly, we must demand that our government pass legislation that REQUIRES a separate line item in the budget that puts a portion of our budget to be applied to retiring our debt.
Third, we must require that all amendments to legislation be specific to that bill. Adding a requirement to spend $20 million dollars to study the mating habits of a lizard to a transportation bill can no longer be tolerated. If someone wants to study the lizard, the legislation for this project should be able to stand upon its own merit. Riders and amendments such as this are costly, sneaky and plain wrong.
The responsibility to ensure this rule is followed will be accomplished by the President of the United States. The chief executive is responsible for submitting the budget, and he should have the right to a line item veto for all appropriations that were not included in his submission. The system of checks and balances will work, but it is hobbled by an all or none requirement. The old approach of, “We’ll give you what you want, but you have to agree to spend the people’s money frivolously” has got to stop.
Within the framework for the balanced budget requirement, emergency spending bills to continue the operation of government because Congress and the President cannot conclude the people’s financial business in a timely fashion should not be permitted. Should an emergency measure be required because we are at war, then all appropriations shall be deducted from the actual budget upon its passage.
We must demand an end to baseline budgeting. This is the method whereby a “cut” is actually a reduction in a projected and expected increase. This strategy also creates an environment for governmental agencies to spend EVERY dollar budgeted, even if they don’t need to, because if they fail to do so, their budget will be reduced in the coming year.
Fourth, we must demand that all tax cuts shall be permanent when placed in to law. This means there shall be no more tax cuts with a sunset provision where they will expire. It should be common sense to understand that the money actually belongs to those who make it. Government shall not assume it is theirs to give and take. If you need to increase taxes, then do it by the book. Legislate it and let the people see you do it.
Fifth, we must reduce the tax burden on businesses, both large and small, so there is more capital to invest in growth, equipment, marketing, sales, etc. This will also serve to reduce the reliance upon credit which will aid the banks as they recover from recent events. It is difficult to understand that our nation has one of the highest corporate taxes while being the leader in free enterprise. Capital will flow to where it can grown and do the most good for a business. High taxes on businesses are bad ideas, since the majority of Americans are employed by small business.
Sixth, we must begin to teach our young people more about economics, personal finance and civics so they are better equipped to fully appreciate the opportunities that exist here in America, but to also be better equipped to enter the world and prosper. We do not teach our young people about investing, financial planning, and debt management and as the Baby boomers age we absolutely must begin to do so.
By taking these six steps we will strengthen the dollar and financial markets all over the world. The world will see that America is committed to preserving our place in the world. Confidence will return, which will spur more investment.
We will begin the process of reducing out of control spending, and begin to repay the money our country owes. This commitment alone will do more to strengthen our economy than any stimulus package ever could.
We will also get our government to actually do its job and serve the needs of America’s future, as well as fulfill their sworn duties of office. Our government is broken, and these steps are but a beginning. All great stories must have a beginning. The story of America’s resurgence to economic greatness should begin here. Today.
Posts
