The coming budget cuts have nothing to do with merit. They have to do with the inexorable logic of mathematics. Over the past decades, spending in nearly every section of the federal budget has exploded to unsustainable levels. Each year, your family’s share of the national debt increases by about $12,000. By 2015, according to Douglas Holtz-Eakin, the former director of the Congressional Budget Office, Moody’s will downgrade U.S. debt.
Saturday, February 12, 2011
Options When it Comes to Debt
Here is a good piece be David Brooks (from the NY Times... Op-Ed). He points out how unrealistic it is to get a handle on our debt problems by small tweeks in our spending. His point is that we have to change what we think of our role of the government. Money quote:
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I certainly with this man's statement. I feel it is our (citizens) responsibility to be financially literate as to how and where their money in being in the governmental sectors of society. I believe that Americans must realize that government officials do not know everything there is to know about covering the nation's debt. They are merely just people with and withouts degrees hired through connections to try and resolve certain issues. The way to handle our nations debt is not by tweaking in our spending but avoid spending on foreign affairs if it does not affect the U.S.A. Also, I think money given to interest groups should be cut as well.
ReplyDeleteSamantha Anderson
ReplyDeleteMWF 9-9:50
I do feel it is unrealistic for most people to handle their debts alone. However, I don't feel we need to rethink our role of the government. If people just focused on themselves, what they need in comparison to what they want, then most debt can we wiped away. Certainly not immediately, or not even in a few years, but it can be done. People need to stop worrying about everyone and everything else and focus on their own financial stuggles. Though this is simplifying it A LOT America needs to do the same thing. Focus on the struggles of the American people before going off to save the world.
I definitely agree with this statement. I do not think that many Americans even know where their money towards federal spending is going. People need to be better educated on the subject in order for a change to be made. Also, even if every individual increases their spending to a certain degree, I do not see how much can be benefited from this because of the large sum of debt the country is already in. Most importantly, if people do not understand concepts around controlling money, they may be attempting to help regulate the economy by spending money they don't have anyway.
ReplyDeleteGabrielle Holak
MWF 10-10:50
Zhao Liu
ReplyDeleteMWF 10-10:50
Increasing by $12,000 a year sounds like a large number to me, and I am not sure if I can catch up to that incremental debt amount with my yearly increase of salary even with a college degree (assuming I have a job). Assuming a college graduate come out from college with $40000 salary a year, $12000 is over 1/4 of that graduate's yearly income. So we must think about how can the citizens survive with this share of debt? How about the graduates who do not even have a job or a low income family with a few children that actually makes about $12000 a year?
The citizens make up this country, so I think they should be very careful in making these decisions which will get us all into debt. The most important thing is, when they spend more money, the lower level of the society never get to benefit from it besides hearing the politicians talking about how great they are by trying to make the world better.
Bruce Chubb MWF 10-10:50
ReplyDeleteFrom the perspective of a college student, I can see first hand how slight alterations in spending can save a few bucks. But still, it is incredibly difficult to monitor our budgets. For example, to eat outside of the cafeteria can be pricey, to have a change of paste and eat at a food truck or a stand usually costs between 5 and 8 dollars, you figure you do that twice a week and thats basically 20 bucks down the drain. From an economic standpoint, those two meals could be money for train tickets home or a book for mosaics class. Anyway, that's a small example, if our national debt increases by 12 grand a year Americans should look not only in their pockets but in Uncle Sam's as well. I think the goverment should show some sort of annual spending report that can account for the little things that our tax money is spent on, much like how a small meal can put strain on your wallet
Katelyn Frueh, MWF 10-10:50
ReplyDeleteI think the one aspect that has been neglected to be mentioned is that which we gain from debt. While I do believe that nothing is ever worth digging yourself out of something you never have a chance of escaping (what would be the point in fixing it if there's no hope in succeeding in the long run?), but I don't believe that the US will ever be in that situation. An increase of thousands of dollars per family per year seems like a lot, but when you're talking in terms of the scope of our nation (given that we stay within the confinements of having the potential to dig ourselves out), can we really put a price on the sustainability of America? Its likely (although I suppose not necessary) that that which brought us into the debt was worth the debt it carried: bank bail out, social security, national security, etc. Whats the good in constantly fighting to minimize and pay off the deficit if there's no hope for an economy in the future? I think it would be wise for policy makers to be aware that there is this problem and that they should be cautious when throwing money around, but at the same time, I don't think minimizing the debt for the sake of lowering the deficit is the best way to keep an economy afloat.
Josh Willgruber
ReplyDeleteMWF 10-1050
When Brooks says on the second page that people have to band together and fight (if they care about entitlement spending) he is making a precisely significant statement. Where the American economy is at this point and time, hoping is merely not good enough. A entitlement program as significant as Social Security, for instance is certainly worth fighting for. A popular national movement must emerge as soon as possible because our nation cannot afford to backpedal any longer. This 2030 spending debt projection of 70 percent is frightening. Forming a humane activist alliance is not just something that should be recommended to education people, foreign aid people, antipoverty & scientific research people, but by ALL Americans. Every entitlement program of the discretionary budget applies to the American people. If our lives continue to be passively dictated by this so called democracy, the people have no other choice but to protect their own freedom. That said, and even if it is out of the people's control, might as well go down swinging.
The key word is: discretion.
Nicholas Camaioni
ReplyDeleteMWF 9 - 10 AM
I strongly agree with this statement. The government and our society has been spending uncontrollably for the last several decades, and now we are once more bearing the consequences of it. We have mortgaged the lives of our future generations simply to keep pushing our agenda of gluttony and greed. Reform bordering on the lines of revolution needs to happen in order for our country to emerge from this crisis. If left unchecked, the National Debt will continue to grow until it swallows us completely and pushes us to the brink of a Third-World status.
The government has a responsibility to try to solve problems for the American people, if they do nothing they will be criticize as incompetent. If they make an effort to solve the problem they are criticize for being intrusive. We need to stop second guessing our government, politicians has qualified people counseling them on every aspect of a problem. After carefully reviewing the problem, decisions are made to give answers to the awaiting public. All Americans will never agree on the decisions the government has put in place, but the government will always explore the problem from many viewpoints before making an attempt to solve the problem.
ReplyDeleteTerrie Hawkins