Meanwhile, our newly elected Republicans are proving to be as timid as they ever were. While making bold claims on the campaign trail, I have not seen any of them, including Rand Paul, offer nearly enough budget cuts to bring us back to fiscal sanity. The American Thinker has the scoop on the level of our woes in an article entitled Faking Our Way to Sovereign Bankruptcy. Here's the shocking money quote (no pun intended):
According to BIS, the US must run higher than a 2.4% budget surplus (higher than the Table above to reflect worsened conditions). A surplus this size has not occurred since the inception of the modern welfare state. To achieve this surplus, the US would have to cut spending by $2.0 Trillion in one year! (Note that any combination of cuts and tax increases necessary to produce this figure would suffice. This discussion assumes cuts only and tax increases would drive economic activity down and likely not be effective.)Emphasis is mine.
Obama claims his new budget produces $1 Trillion dollars of cuts over 10 years. (At first blush, it is seen to contain at least 15 different tax increases to achieve his claim.) Even if his numbers were real, that is half of what BIS says is required in the first year and every year thereafter for 20 years! Over Obama's 10-year horizon, the BIS say that $20 Trillion is required. To achieve it, requires spending cuts of more than 50% of total government spending immediately!
We need a truly bold strategy. One that gets us down $2 Trillion this year and then marks out how we are going to maintain that level in the out years. Whole departments and programs will need to go. The philosophy that if someone is hurting in America, the Government must act must go. And if the Republicans can't do this job, for which we sent them to Congress, then they must go too.
If you want to decide what must go, and what must stay, start with the Constitution. Departments like DOE, HUD, Department of Energy, and the Department of Agriculture need to go now. ObamaCare must be defunded in its entirety NOW. We must determine a strategy to get us out of Social Security now. We must also tackle Medicare, and bring it under control. Of course, the last two programs are not Constitutional, but they have been around so long that it will take time to ween people off of them. Eventually, they must go. Some departments, like the EPA need to be cut down to size. I don't deny that they may have some Constitutional purposes, but those purposes are extremely limited. The FCC is in the same boat.
Note to the Republicans. Yes, the Democrats will fight, and fight dirty. Obama won't sign off on these, that's a given. But they will be seen as the obstructionists. Hint: now is a good time to propose these things. You will never be stronger.
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