The day after I posted my ‘The US Economic Crisis – Spending, Debt and Possible Solutions’ blog post:
Bloomberg published and article by top Boston University economist Laurence Kotlikoff titled ‘U.S. Is Bankrupt and We Don’t Even Know It’:
Let me tell you, it is a real downer of an article, since it basically summarized the blog post I had made the day earlier:
We are screwed because there is simply no way to balance the US budget and pay off the national debt, without doubling everyone’s taxes, and even then it would take a couple of decades.
It is nice to know that a top economist and Bloomberg basically said the samething I did, but I would much rather that our country didn’t have the problem in the first place.
The article basically provided the following ‘good news’:
‘What it [USA] can and must do is radically simplify its tax, health-care, retirement and financial systems, each of which is a complete mess. But this is the good news. It means they can each be redesigned to achieve their legitimate purposes at much lower cost and, in the process, revitalize the economy.”
It might sound like ‘good news’ but it is missing a key ingredient – politicians in congress with enough balls to put the betterment of the country ahead of the corporate interests that paid for them to win the election, the party politics, own self-interests and thier own fear that if they do anything all about anything – they might not win re-election.
We need some politicians who will make the tough decisions to:
1) Limit the payments of the ponzi scheme known as Social Security, and actually reduce them. This will mean the people who paid in will get screwed, but it means their children and grand children will be better off. I just don’t think the selfish baby boomer’s will care, and will whine like babies and threaten to riot in the streets, which will scare the pussy politician in to not doing it.
2) Scale back the US role as the police force of the world. The $678 billion US military budget is larger then all the other countries (on the planet) combined military budgets. It is ridiculous that we spend so much money on our military.
3) Significantly raise taxes over a period of years, till the cuts in Social Security and the military reach a point where the budget is balanced and we can start paying off our nation debt.
See, it really is simple. Right?
Good Luck again people.