Budget Debt
The US Government spends about $3.7T a year and generates revenues of about $2.5T a year. A $1.2T annual deficit in 2012. In the last two years, Sequestration cuts and increased revenues have reduced the deficit. Now that Obamacare is underway, forecasts skyrocket for budget deficits. If anyone wants to know why we have a budget problem in this country, all you have to do is look at the running debt clock. We are now at $17T in debt.! But, if big numbers alone don't get your attention, then lets put the $17T in perspective, it represents over 100% of GDP. The nation owed $10.6 trillion on Jan. 20, 2009, when President Obama was sworn in, and he has added another $5.4 trillion since – more than Bush piled up in two terms. There is bipartisan agreement that we cannot sustain this level of debt. There is also bipartisan agreement that we must correct the outflows exceeding inflows that drives the debt higher every second (see debt clock) . Everyone who manages a checkbook has seen this problem before and knows how to correct it - reduce expenses and increase income. Increasing revenues is critical to the solution, but will not have an immediate impact. Reducing expenses is also critical to the solution and can generate immediate impact. It is the only thing in your control instantly! Everything else we here about this subject beyond these two facts is just noise and should be ignored. The political left and right cannot agree on how to correct this problem. Doing something is also better than doing nothing, which is what this stalemate is giving us now. The left solution to our problem is to increase taxes on the rich to increase income. Currently the top 20% of income earners pays 80% of the federal tax burden. So do we want them to pay 100%? 110%? 120%? Maybe just write the check every year for the entire cost of government, whatever it is? Clearly this is not the solution. The right wants us to reduce spending and taxes, which is also a poor solution in a recessionary economy. But the truth is we must do both (reduce expenses and increase income), we must do it now and it will not be easy. All the political hot air outside these two facts is simply a distraction from the difficult but obvious answer. Europe is going through this right now and they are struggling mightily with the anticipated pain of the solution that in their hearts they know is necessary. To increase income we must immediately restructure the tax code to foster a growing economy. A growing economy will increase income (tax revenues for the government) over the next 10 years, but not immediately, this is a delayed impact. To immediately begin to impact our budget and debt problem whiling anticipating increased revenues we also must immediately and dramatically cut spending. That MUST include discretionary spending AND entitlements which represent 90% of the problem. The left will say you are hurting education, the homeless, healthcare of all Americans, the elderly and on and on. The right will shout "we are already taxed enough". All This whining MUST be ignored. No one wants to hurt themselves, their families or their neighbors We have no choice but to intelligently make these difficult decisions while minimizing the pain. But there will be pain. And our representatives MUST ACT NOW. It is a dereliction of duty if they do not. Below you can watch the ongoing debate on this critical issue. And hopefully see the solution we need develop.

Options for Federal Privatization and Reform Lessons from Abroad

8/3/16
by Chris Edwards,
from CATO Institute,
6/28/16:

Using lessons from around the world, the federal government should privatize the US Postal Service, AMTRAK, the Tennessee Valley Authority, the air traffic control system, and other assets ... to increase efficiency, spur innovation, and improve the environment.

The American economy is sluggish, the government is running large deficits, and the public is frustrated with the poor performance of federal bureaucracies. One reform that can tackle all of these problems is privatizing federal businesses and assets. This study discusses a dozen advantages of privatization and describes government activities that should be moved to the private sector. A privatization revolution has swept the world since the 1980s. Following the United Kingdom’s lead, governments in more than 100 countries have transferred thousands of state-owned businesses to the private sector. Railroads, airports, energy companies, postal services, and other businesses valued at more than $3 trillion have been privatized. Governments of both the political right and left have unloaded state-owned businesses. Despite the global success of privatization, reforms have largely bypassed our own federal government. Indeed, many activities that have been transferred to the private sector abroad remain in government hands in this country. That creates an opportunity for U.S. policymakers to learn from foreign privatization and enact proven reforms here. This study describes why the federal government should privatize the U.S. Postal Service, Amtrak, the Tennessee Valley Authority, the air traffic control system, lands, buildings, and other businesses and assets. Such reforms would increase efficiency, spur innovation, create greater transparency, and improve the environment. Privatization would allow entrepreneurs to take on challenges at which federal bureaucracies are failing. The United States is a land of huge talent and diversity. But to take full advantage of those assets, we should divest the government of activities that individuals and businesses can perform better by themselves.

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