tag:blogger.com,1999:blog-8054521671768779399.post3899143075007037926..comments2023-10-30T12:22:17.806-04:00Comments on Liberty Takes Effort: Crippling our children with debtLiberty Takes Efforthttp://www.blogger.com/profile/13398225334133635697noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8054521671768779399.post-89148987588291681422014-08-22T17:48:59.474-04:002014-08-22T17:48:59.474-04:00This post was published as a MyView editorial in t...This post was published as a MyView editorial in the Cape Cod Times on August 22, 2014 and is available at the following link: http://www.capecodonline.com/apps/pbcs.dll/article?AID=/20140822/OPINION/140829849Liberty Takes Efforthttps://www.blogger.com/profile/13398225334133635697noreply@blogger.comtag:blogger.com,1999:blog-8054521671768779399.post-23743419887522507432014-08-10T21:15:54.654-04:002014-08-10T21:15:54.654-04:00FOR THOSE WHO ARE INTERESTED IN MORE INFORMATION A...FOR THOSE WHO ARE INTERESTED IN MORE INFORMATION ABOUT THIS TOPIC THE INFORMATION BELOW IS PROVIDED<br /><br />What is driving the national debt in the long term? In a word – demographics. The population is aging. Fewer people are contributing to Social Security than are receiving benefits and an aging population increases health care costs. <br /> <br />The federal budget is driven by non-discretionary spending or entitlements – Social Security, Medicare, Medicaid, Food Stamps (SNAP) - which make up about 60% of the federal budget. Another 6% goes to paying interest on the debt, which will sharply rise in coming years. The remaining 35% is discretionary funding for national defense, education, research, transportation, agriculture, etc.<br /><br />Cutting the $100 million payment to cotton farmers in Brazil (yes it’s true) might make us feel better, but it does little to solving the problem. The annual debate about the budget is about the 35% only. The entitlements must be tackled to make a difference. <br /><br />Without radically changing the nature of our relationship with government to become a European style socialist society receiving cradle to grave benefits or drastically reducing the role of the federal government and eliminating many very popular programs through inadequate taxation we are going to have to find a position that reflects traditional and historical levels of federal involvement.<br /><br />In recent history the size of the federal government has averaged in the 18% of GDP range, but in recent years revenues have been as low as 15% and spending almost 25% of GDP. The gap between the two is the deficit. <br /><br />We have to decide how much federal government we want as a percent of our GDP and fund it into balance. Is it 18, 19, 20%? It makes a difference which and we have to decide. See the Congressional Budget Office Table below for a graphic representation of the present trajectory.<br /> <br />“White House Burning, The Founding Fathers, Our National Debt, and Why it Matters to You,” Simon Johnson and James Kwak, Pantheon Books, New York 2012 is recommended for an easy read in understanding the issues related to the debt. The two make recommendations to correct the problem. They are too reliant on taxes, but they are a start. There are a number of other recommendations made by others that in combination could result in a compromise solution to the debt problem. No one will be fully happy and never are, but we must stop insisting that there be a vanquished and victor in our politics.<br /><br />Other recommended reading include:<br />“The 2014 Long-Term Budget Outlook,” Congressional Budget Office, July 2014 http://tinyurl.com/n5b8tak <br />Liberty Takes Efforthttps://www.blogger.com/profile/13398225334133635697noreply@blogger.com