Deficit Issue

[FarmerJamie]

SD, I think you're just fine and a person.

Couple of thoughts -
deficits themselves aren't necessary bad, in the grand scheme of things. The govt should be able to keep providing needed functions in an economic downturn for short periods of deficit spending. During boom times, the extra funds should be used to reduce the national debt.

The most irritating part of this whole debate in DC is that the "cuts" are only reductions in the proposed rate of growth in spending. Don't get me started on waste, fraud, abuse, and redundant programs.

One final thought, "T"rillions of dollars are mighty big numbers - a more important number is that number in terms of the % of GDP. I believe right now the govt is collecting 18% GDP in revenue and spending an amount around 25% of GDP.

$30K is a lot of money, too.
Someone making $50K per year is not going to get a loan for a $30K car, at least not at a reasonable interest rate. For someone making $200K, a $30K loan is not that big of a deal.

Just my 2 cents worth, a penny after taxes.

 

[i_am2bz]

I personally can't wrap my head around a number followed by 12 zeros. What puts it in clear perspective for me is borrowing $.40 of every dollar we spend. That is completely & profoundly unsustainable.

Hannity has talked a couple of times about "the 1% plan", & I was wondering if anyone here understood it well enough to discuss it...

 

[abifae]

I have never had a penny of debt. I am the odd duck who learned from my parents mistakes.

I make 18k a year. By govvie standards, i should have 15k debt a year.

 

[FarmerJamie]

I personally can't wrap my head around a number followed by 12 zeros. What puts it in clear perspective for me is borrowing $.40 of every dollar we spend. That is completely & profoundly unsustainable.

Hannity has talked a couple of times about "the 1% plan", & I was wondering if anyone here understood it well enough to discuss it...

the-one-percent-reduction-act-penny-plan

The Penny Plan balances the budget by:

Cutting total federal spending by one percent each year for six consecutive years,
Setting an overall spending cap of 18 percent of gross domestic product in 2018, and
Reducing overall spending by $7.5 trillion over 10 years.
If Congress and the President are unable to make the necessary cuts, the bills fail-safe triggers automatic, across-the-board cuts to ensure the one percent reductions are achieved.

IMHO, this cures the institutional sickness of "baseline budgeting". Instead of arguing over whether each year we spend 8% more or 3% more (3% more when 8% more was planned is a cut in spending?)

You congresscritters want to spend more money, enable the country to grow GDP.

 

[R2D2]

The one percent penny plan would not work.Why?, because one percent of trillions of dollars is still alot of money.Sounds like a smart thing to do, but some elected persons would disagree and feel your taking something important from his/her voter base.Thats why were in this mess, nobody can agree on anythng that really makes a difference for the better.It's all about me.me and more me, they are not doing whats good for our nation, and i doubt much will change anytime soon. Nothing will change until we crash and are forced to change.. IMO

 

[savingdogs]

Us crashing and being forced to change is EXACTLY what I don't want to happen. I agree with what the founding fathers put down! We have just taken their system and gotten away from the original design. The radical change I'd like to see is paring down the government to the point that they have a LOT less to do and spend, which is more the way it was when our country was founded.

 

[calendula]

I think it will be difficult to reduce the size of the government because there are so many people out there who want it to be this way. They want someone to take care of them, and make a bajillion laws to "protect" them. I just got into a very heated discussion with my cousin's wife about this issue. Basically, she feels that more government is better and is necessary to take care of and protect US citizens. And there are many people who feel the same way. Personally, I feel that rather than protecting me, they are slowly taking away my rights. What ever happened to personal accountability?

 

[savingdogs]

I agree, Calendula!

 

[Mattemma]

When I can't pay my bills I don't go asking for a higher credit limit.I cut my spending instead. Personally I find it very insulting to see the govt. threatening to not pay the military or other people in need.The government workers should take the cut/no pay not citizens and soilders.

 

[i_am2bz]

I think it will be difficult to reduce the size of the government because there are so many people out there who want it to be this way. They want someone to take care of them, and make a bajillion laws to "protect" them.

Exactly. If, by some accounts, 47% of the population receives some kind of govt assistance, do you really expect them to vote for anyone who threatens their benefits? You would have to get the remaining 53% to vote "our/your" way. Good luck.

When I can't pay my bills I don't go asking for a higher credit limit.I cut my spending instead. Personally I find it very insulting to see the govt. threatening to not pay the military or other people in need.The government workers should take the cut/no pay not citizens and soilders.

And I noticed that nothing was mentioned about the politicians not getting their paychecks, just the military & SSA recipients.