REFLECTIONS

Posted on August 7, 2011

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CONGRESS FAILS TO GET JOB DONE

KICKING PROBLEMS DOWN THE ROAD

So once again it is as usual in Washington, D.C. as Congress kicks problems to next time and goes on vacation. It is more important to keep campaigning for office than to solve serious problems confronting our nation.

We give them free rein with our money while getting promises of spending cuts in the future, this time a debt reduction super-committee is to come up with a proposal in three months. And Speaker of the house John Boehner said he had accomplished 98 percent of his goal in the recent debt limit increase compromise. What compromise and what reduction in our national debt?

Does the debt ceiling deal solve anything? Nope. Even the deb ratings agencies know that without a real decrease in spending, not a decrease in planned increases or promises  of future restraint, our country is still in trouble. So our credit rating was dropped from AAA to AA plus.

The budget issue is not so complicated, nor is it thatt serious or difficult to fix. And you don’t have to go after Social Security and Medicare except for a few minor adjustments like  raising the age for receiving benefits. We need to close tax loop holes and let  the Bush tax cuts expire.

Of, course the voters are responsible to an extent for putting people in  office who caused the deficit by not paying for two wars, ruinous tax cuts, a profligate prescription drug deal and a financial meltdown caused by the banksters.

Today Federal revenues is about 14 percent of the U.S. economy which is the lowest level in more than 40 years. One of the reasons for this is high unemployment. So the Federal government is borrowing 1.4 trillion or about 40 percent of the federal budget. Regardless of what Republicans say about no more taxes, no Congress would seriously consider cutting the budget by 40 percent. If we are really interested in reducing the deficit, we need to raise revenues. This is the only way we can get a serious deficit reduction.

To force the middle class and the poor to pay for Congress excesses by cutting entitlements is wrong.

It is moral lunacy and economic madness to not get our house in order.

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