its painfully easy to do.
and with NO tax hikes.
(hint: we have a spending problem but you knew that didn't you ?)
and with NO tax hikes.
(hint: we have a spending problem but you knew that didn't you ?)
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Want to balance the budget in 10 yrs or less ?
- Thread starter dogtowner
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GenSeneca
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Inflation averages about 2% a year. Freeze spending growth at 2% allows gov spending to keep up with inflation. At 1%, gov spending will actually get reduced by 1% a year. At zero growth, gov spending would effectively be getting cut by 2% per year. While those are all preferable to what we have now, that's not cutting nearly enough fast enough.
Ten years isn't fast enough. What that chart has not factored into the equation are rising interest rates, which will rise in the next ten years. Our debt service is currently 9% of the budget while interest rates are at all time lows, they can't go down any further, they can only go up. As interest rates go up, our debt service will grow exponentially and swallow much larger shares of the budget. We'd have to cut massive chunks out of other areas of the budget to keep from adding to our already outrageous trillion dollar deficits.
Ten years isn't fast enough. What that chart has not factored into the equation are rising interest rates, which will rise in the next ten years. Our debt service is currently 9% of the budget while interest rates are at all time lows, they can't go down any further, they can only go up. As interest rates go up, our debt service will grow exponentially and swallow much larger shares of the budget. We'd have to cut massive chunks out of other areas of the budget to keep from adding to our already outrageous trillion dollar deficits.
Cruella
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Not in my world. I can only gauge inflation by what it costs me to live, and its a whole lot higher than 2%.
While I would prefer to see spending reduces as much as anyone the point is that the biggest problem we have is spending outpacing economic growth. That % of govt spending in excess of GDP that is dangerously high now is where the rubber is hitting the road.
Got to start somewhere and Romney has recognized that this metric has to be addressed first and foremost.
Got to start somewhere and Romney has recognized that this metric has to be addressed first and foremost.
GenSeneca
Well-Known Member
2% is the official government approved figure, which doesn't count the cost of food or fuel...
So... Just stop buying food and fuel, then your cost of living will only rise at 2% a year!
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GenSeneca
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To the economically illiterate, Obama recognizes the same problem and, to them, has the better solution... *Ask* the millionaires and billionaires to pay just a little bit more in taxes... To pay their "fair share". Romney's plan is to raise taxes on the poor and middle class to pay for tax cuts to millionaires and billionaires, poison the air and water, push granny over the cliff, let sick people die homeless in the streets, leave children and the handicapped to fend for themselves, offshore every good American job overseas then give cancer to the spouses of all the people he left jobless, ban all forms of contraception and birth control, and torture puppies - just for the hell of it - by strapping them to the roof of Air Force One. And let's not forget... Romney is a Raaaacist!
The fact that polls show Obama and Romney in a dead heat just proves how stupid the average American truly is and how effective the Left has been at destroying education and spreading Leftist agitprop through their water carriers in the media.
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