Monday, December 6, 2010

Budgeting

Putting together a workable budget is very simple, just not when thousands of people are involved. The US is faced with a sluggish economy and a government which is gorging. It amuses me that when politicians say the economy is bad, they often mean the government is not funded at the level they want. Pardon me, but those are not the same thing. The modern economy should be optimized to grow non-governmental US-based jobs.

So how does one balance the budget?

To me, the first step is to cut the fluff, the second is to eliminate illegal activity, and the third is to rationalize the core programs.

Cut the fluff ... stop earmarks, freeze pay levels, eliminate farm subsidies, drop the redundant department of education, cap new spending for a set amount of time, freeze government travel, and so on. No pain, lots of gain. Also: Make approriations more difficult, and vote for candidates with an understanding of free-market economics.

Eliminate illegal activity ... stop the influx of illegal aliens, cut governmental payments to existing illegal aliens, and drop all of the unconstitutional "czars" and their staffs.

Rationalize the core programs ... Demand the world's best defense but at a better price, find a market-based solution for Medicare/Health Care which excludes routine office visits, and recalibrate Social Security to the demographic realities and original intent (raise retirement age to 70, and set the payout level to a safety-net level, i.e. just above poverty).

Final word: you don't fix the budget problem by raising taxes. Governments spend dollars; they don't pay down debt. Better to throttle the monster rather than feed it.

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