This is an informative article especially since there is a poll where people can vote for what they think will reduce the deficit. Most say cut entitlements but then when specific entitlements are brought up they don’t want to cut “those” entitlements. And of course the entitlements people don’t want to cut are the largest ones and the ones that are bankrupting the country.
Lost amid last month’s passage of the new health care law, the Congressional Budget Office issued a report showing that within this decade, President Obama’s own budget sends the U.S. government to a potential tipping point where the debt reaches 90 percent of gross domestic product.
Economists Carmen Reinhart of the University of Maryland and Kenneth Rogoff of Harvard University have recently shown that a 90 percent debt-to-GDP ratio usually touches off a crisis.
This year, the debt will reach 63 percent of GDP, a ratio that has ignited crises in smaller wealthy nations. Fiscal crises gripped Canada, Denmark, Sweden, Finland and Ireland when their debts were below where the United States is shortly headed.
The bottom line is that really no matter what we do unless we cut EVERY THING we are on a path of ever increasing deficits.
No one is advocating big tax increases or spending cuts before a recovery takes hold. The problem is that deficits will not reverse even after a full recovery.
UNLESS we get serious and change the way we have been living and our expectations from government. It is the peoples choice to make whether we limit our own spending and control our own lives and perhaps being able to limit the hardships placed on the most vulnerable among us, or whether we wait for the ceiling to cave in on us whereby we will simply be all suffer equally in a chaotic society. BB
See also: Poisonous Politics of Self-Esteem – This article is a better explanation of why people have difficulty making the hard choices even when they see clearly what must be done.