Reducing the Deficits of the Federal Government

The Democrats spend taxpayer dollars like water, buying influence, and lining their pockets. Then they hand government over to the GOP to be the bad guys, limiting taxpayer cash to various programs to try to repay the loans on our children. Meanwhile the Democrats carp, moan and scream as if they had nothing to do with the pain.

Two things are needed. A balanced budget each year, and term limits...

Tax Cuts? I believe we’ve probably seen the last of those puppies.

Reducing spending reduces the opportunity for corruption. That is why it hardly ever happens in government.

Long time ago, there was the Grace Commision, which recommended cuts that could be made. Under Reagan maybe? I don't remember how well it worked out. But I think a committee of average household, working, taxpayer citizens should be part and parcel of influencing what our pols do on taxes and spending. We who PAY should have an active real voice in how they SPEND. Our vote-voice is only heard twice every two years. Otherwise they never listen.

It started with Coolidge, Dr. Voth. What followed is called the Coolidge Boom by historians. We know it as the Roaring Twenties. Coolidge reduced spending at the same time which did not happen with any of the other Presidents. This works every time we try it.

The first thing that should be adopted is a law that spending cannot rise in any year at a rate larger than the rate of increase in GDP. Another law should be adopted that government debt cannot exceed a certain percentage of GDP, 50%, which is currently 140% of GDP, and that if that occurs, a plan to return to 50% must be put in place to achieve that in 20 years or less. This closes the open checkbook that we now have, and which is leading us to ruin.

FTA: The growth of federal deficits over the past 60 years is directly attributable to excessive spending and not to a lack of revenue. All of those clowns hired by Leftist government and U-Penn Professor Biden himself seemed to have skipped Economics 101 on their way through school. They also skipped math and history but that's another story.

The US has acheived a balanced budget 7 times in our history, the last being the Clinton years with Gingrich as Speaker. In 6 of these cases a depression followed within a couple years. In the last case in 1998 a major recession followed that put millions out of work. All balancing the budget does is suck productive capital out of the private sector and deposit to the Treasury accounts. Here's the dirty secret. They don't need our taxes. They manufactured the money we paid them when they spent it in the private economy. All we are doing is handing it back through our taxes. Any time they need more money to meet the needs of the country they can go to their bank, the Federal Reserve, and the Fed is required by law to create whatever they need. The money in the private economy, used properly, builds businesses and creates jobs that raise the productive capacity (GDP) of the country. This reduces the fraction of the federal deficit to the GDP but the overall pie, both private wealth and government deficit, grows because they are opposite sides of the same accounting ledger. The problem with tax cuts is that it has the effect of disproportionately redistributing the benefits to those who are already at the top and can already meet their budget needs. If they just buy bonds or save the money rather than spend or invest it, it doesn't get put to work expanding GDP.

I have been reading about, hearing about, and spoken about this topic for forty years. IT IS NEVER GOING TO HAPPEN. Sure, there will be moments, but the debt snowball is the size of Jupiter. There isn’t anything to do, short of repudiating the debt and reorganizing the global economy. And that means global warfare. So, strap in and enjoy the ride. No one is ever going to do anything about it.

Just stop sending our tax dollars to ANY foreign country, no matter what the reason...we should not be the worlds welfare provider...shut down the ability of the State Dept to spend ANY money, as well as some other federal departments...