According to the Fed, the net worth of the nation is $51 Trillion. Social Security and Medicare actuaries report that the liability for both programs is $106 trillion. In other words we’re on the entitlement hook for twice the net national wealth! Now add the $14 trillion in current deficits and you’ve got a sense of the financial cliff we’re about to go over; exclusive of Medicaid.
States collectively have a budget deficit problem of another $140 billion; do we even pay attention to billions anymore? Public Employee pensions are in for another $2 trillion in unfunded liabilities. Ignoring the billions we are, at least, $122 trillion in the hole, 2.4 times the total net worth that exists in the United States. $122 trillion is more than 8 times annual GDP, with more debt authorization on the way and more deficit spending likely. These numbers don’t consider costs associated with Obamacare.
Are the big numbers, too big to wrap your perception around? Go with the small numbers; 2 trillion in spending cuts is about 1 cent for every 20 dollars of federal spending. (American Spectator)
Don’t get too excited over $2, $4 or $6 trillion over 10 years. It’s nowhere near enough! $6 trillion is less than 5% of the problem.
What will it take to resolve it? One option is for everyone to pay up their share of the burden. Each non-farm employed American (237,000,000; Bureau of Labor Statistics) simply needs to write a check for $800,000 assuming, of course, no further deficits accrue beyond $122 trillion.
Democrats and Republicans are both correct. Revenue must increase and spending must go down. Everyone knows it, even in Washington. Everyone in Washington is also afraid to define the entire scope of the problem and by extension to demonstrate comprehensive leadership beginning with the truth. The truth is that solutions must transcend ideology; sacred cows must be put aside to actually fix the problem.
The challenge is broader than spending and debt, the challenge is to; once again, redefine America. That redefinition will, as it always has, make harsh demands. The culpable parties are politically all encompassing; who did what to whom, when is rendered meaningless. It is what it is; the constant stream of self serving recriminations reaching the point of mind numbing redundancy.
No more tricks! Cutting the growth of spending is not cutting spending. We need empirical reductions in the number of dollars spent not the pace of spending growth. To say that a 6% growth in spending is a cut because you originally planned to grow spending by 10% is political Three Car Monte. Doubling the price so you can advertise a 50% reduction gets us nowhere.
The fact is we cannot maintain the scope and growth of government as reflected in the Progressive ideal. This model is on the verge of, or has failed in Greece, England, Portugal, Italy, and Spain; absent the corrective the U.S. will follow in their footsteps. This is our final examination; failure means economic recession, widespread poverty; systemic collapse and security threats based on an economy unable to sustain a proper defense posture or influence the advent of the unforeseeable. In the absence of American leadership are we to depend on China to maintain global security?
The common sense dictate for the Federal government is to do only that which is necessary; to do that which states cannot do for themselves is fast becoming a financial imperative and can no longer be confined to a battle in an ideological war. There should be no ideological war: government growth, spending, demographics associated with entitlement programs, currency valuation and the decline of Social Democratic systems in Europe should construct a common sense framework for what is generally categorized as a ‘Conservative’ approach to governance. The Progressive/Liberal model is not working.
The election of President Obama was to be the political pinnacle for the decade’s long aspirations of the Progressive movement. They knew the code words, they knew what was coming. Obama was to be the ultimate catalyst in facilitating the final victory for the Progressive vision. The Progressive vision has always suffered a fatal flaw, minimizing the masses that they so ardently sought to represent as the dominant, elitist ruling class.
The masses are speaking; they have exposed the true extent of the grassroots Progressive base. 21% of Americans believe we’re on the right track, those would be Progressives. The rest of us want……………..hope and change!