Debt Problem In This Country

Just a couple of things to make clear what's going on here.

First, we have a chart that shows federal income (taxes) vs federal spending. Check out the hockey stick on the spending line:

United-States-Government-Spending.jpg

So, all of a sudden, in the last couple of years, the WH has been spending shitloads and shitloads of money. I mean, we're running trillion, trillion and a half dollar debts every year.

Some folks say, well... it's an emergency. An economic crisis of the sort not seen in nearly a century, and we should expect a couple of years of abnormally large federal deficits as a result.

However, don't count the folks at the White House among those that think this is a temporary situation. They're proposing deficits like this for the next 10 years:

deficit-graph-2.gif

This last graph is why the ratings agencies have been talking for the last 6mos about how they might downgrade US debt -- not because of any arbitrary debt limit, but because of the massive, unsustainable ongoing deficits projected over the next 10 years.

So the Republicans, led by Eric Cantor and his budget, projected one dollar of spending cuts for every dollar that the debt ceiling was raised. Let's cut some big stuff, and let's cut it now.

Now, just a reminder here... the deficit is projected to be $1.5 Trillion dollars this year. That's $1500 Billion.

Obama came into the debt talks earlier this week with $2 billion in cuts he was willing to make.

He also said that we needed to eat our peas and have some "shared sacrifice". He's awfully fawking petulant for a guy that keeps talking about how we all need to work together and compromise.
 
Two words: FAIR TAX

Fairtax.org
 
Fair tax has nothing to do with spending.

All Fair tax does it take the current federal tax scheme and turn it into a nonprogressive sales tax.
 
Shawn said:
Fair tax has nothing to do with spending.

All Fair tax does it take the current federal tax scheme and turn it into a nonprogressive sales tax.
Click to expand...

Although I highly support it as part of the long term solution the short term answer is that it would probably cause more problems.
 
There is only one word to describe the fact that the federal government now spends almost $3 trillion a year: obscene. At least 90 percent of what the federal government spends is unconstitutional, wasteful, or against the limited-government principles of the Founders. The only thing the FairTax does is change the way the state confiscates the wealth of its citizens. As Congressman Ron Paul says: "The real issue is total spending by government, not tax reform."

from mises.org

Also if you havent checked it out, skim thru "Economics in One Lesson" by Henry Hazlitt
 
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