Cut, Cap and Balance could be the answerPublished 10:05pm Tuesday, July 19, 2011
About the most sensible thing I’ve heard coming out of the present debt ceiling debate being waged in Washington, D. C., is the Cut, Cap and Balance Act.
U.S. Sen. Jim Dement (R-S.C.), along with other Republican colleagues, is proposing the Act. It would cut spending by half the deficit, cap the debt limit to 18 percent of the economic output and pass a balanced budget amendment to be sent to the states for ratification.
Tall order you might say, but it might possibly be the only way to ever get the federal government’s house in order.
It is important to look at the situation we are facing right now.
The government is borrowing at 25 percent of the economic output of our economy. When George W. Bush took office, the national debt was $5.7 trillion and when he left it was $10.6 trillion.
In just 2 ½ years of Barack Obama, the debt has increased $3.9 trillion, to a staggering $14.5 trillion. Upcoming interest on the debt to avoid default in August is $29 billion.
Obama’s 2012 budget proposal failed in the Senate 97-0 included a deficit of $1.6 trillion dollars. The impending train wreck of debt must be stopped.
As former Obama advisor Rahm Emanuel said about the deep recession in 2008, ”You never want a serious crisis to go to waste.” That crisis resulted in a failed stimulus package and government run health care.
So, if the Republicans will use the Democrats’ philosophy on crisis management against Democrats now, there is a chance of getting something worthwhile accomplished.
Would it be asking too much of our federal government to just exercise basic household management principles and practices? I think not; the problem seems to be we are short on statesmanship and long on self-serving opportunist in Washington, D. C.
All the scare tactics being put forth by the president about Social Security and disabled vets not being paid is just that, and is irresponsible.
There is enough money coming into the treasury each month to pay the interest on the debt, so as not to default. Social Security, Medicare and Medicaid, active duty military pay and veterans affairs programs if prioritized and paid first with billions to spare.
He could conceivably decide not to pay those as first priority, but the onus would be on him for not doing so.
Cut, cap and balance may be our last gasp chance for America.