After my hiatus, I decided it was time to come back to life. What triggered this decision? Well, I would have to say it was the State of the Union message last night. Not really, but it sounded good, at least to me.
These are definitely laudable motives for improving our economy. However, how are we going to cut the deficit? And how we going to make the U.S. competitive with economic rivals such as China?
Let’s see are we planning on repealing the Federal Minimum Wage? You know - we have to pay people over $7/hour. In China many people make $7/DAY. Exactly how do we compete with that?
Or, are we going to disband the EPA and tear up all the environmental laws? After all, in China you just dump your poisons in the water and spew them into the air. Can anyone explain to me how, when entitlements are 56% of the budget, and we currently borrow between 40% to 43% of the budget, how one intends to be "learner and smarter" and get rid of the deficit - when you have to pay interest charges - without cutting those entitlements?
Today, the Congressional Budget Office said that Social Security will pay out $45 billion more in benefits this year than it will collect in payroll taxes, further straining the nation's finances. The deficits will continue until the Social Security trust funds are eventually drained, in about 2037. Ouch, Ouch, and Ouch!!! In addition, the CBO stated the federal budget deficit will reach nearly $1.5 trillion in 2011 due to the weak economy, higher spending and fresh tax cut. I really believe (no, I know) that the majority of Americans do not realize what the shortfall in social security and the $1.5 trillion federal deficit means to the future of America, and, of course, to their future.
Where is the sanity in all of this? It is all very crazy, indeed. As a nation, we can not deficit spend our way out of our economic problems. What we have done is create the greatest financial bubble in the history of mankind. Now, that is crazy!
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