Search This Blog

Sunday, August 7, 2011

Getting Our House in Order

      America is in deep doo-doo.  Is their a way out of it? Yes there is.  It requires getting our house in order.  The first thing that requires is acknowledging we have a house and with that comes the reponsibility to keep it liveable.  If you buy or have a house it is not enough to just make the payment and pay the taxes.  You have to maintain it.  If you do not, buy the time you pay it off it will not be liveable.  That is not a problem if you are hoarding your money and have some other place to go which is better.  However when there is no other place to go and you are broke with a falling down house you have a problem.  Especially if you are in debt up to your eyeballs. Having creditors creates a problem.  You have to make a dollar to pay them, but then you still have to make another dollar for you to actually live on.  You can live on the borrowed money and put off facing the problem, but sooner or later you do not have enough money to make ends meet.  That is the predictament America is in today.  We are accumulating debt at the rate of 1.2 Billion dollars a day.
     Debt is something I definitely know about.  Four times in my life I was in a situation where my debts exceeded my income.  Only once did it become a problem I could not handle.  Bankruptcy really sucks, especially when you are playing the game by the rules.   Playing by the rules does not matter when forces you have no control over take away your means of making a living.  When that happens it is twice as hard to deal with.  The movers and shakers that make things happen screw up and the consequences fall on the average individual.   Mr. Joe Average contends he had nothing to do with creating the problem he is facing.  However that is not totally true.  If he did not vote or did not actively express his views through the political process he is partially at fault.  The fact that America is in debt to the tune of around $40, 000 for every man, woman and child in America did not just  happen overnight.  Mr. Joe Average's indifference allowed the system to get in the condition it is in.
      The only way it is going to get better is when all the Joe Averages's get together and realize the status quo is not working.  America needs a third party that is focused on solving the problems facing America.  A party that demands government runs the same way the Average American has to live.  That is within their means.  That demands government follows the Constitution.  That demands the government does not mess with programs that every American pays into.  The first priority is protecting our country and military payroll should be the first payroll paid.  Next should be those who have already paid their dues.  If we need to fix that system and make it more solvent so be it, but it is not part of the budget money.  Third comes the people on disability.  After these are taken care of the government can spend the rest of it funds as it sees fit.
     The medical system does need repaired also.  Every citizen should be entitled to health care.  It should not just be 80% of the bill either.  It should pay all of the bill.  As I approach 65 and daily recieve junk mail from all the companies who want to insure me for that 20% not paid I realized something.  Insurance companies are definitely part of the problem.  We need to modify the system so Doctors, Nurses and Hospital do not need malpractice insurance.  Exempt those who are in business to save lives.  If they fail to perform safely remove them from the system by pulling their license.  Institutions sworn to save lives should not be liable.  Is their a risk?  Yes just like their is of crooked cops and politicians and bankers.  However those just mentioned do not have to have malpractice insurance.  It is time to kick the lobbyists off of Capitol Hill and return it to the people.  Lobbyists do nothing that is not going to benefit them in some way or another.  It is usually at the cost of the taxpayers.  Time to get back on track.
     The recent budget debate solved nothing.  It just wants to kick the problem down the road.  Of every dollar America spends 40 cents is borrowed.  While Congress is making token payments and wants to show their good faith by paying a few billion over ten years.   It has not addressed the problem.  With fourteen trillion dollars in debt we have to pay off over 5.6 Trillion dollars over ten years,  Please note that, that amount only keeps us even.  It would take close to 600,000 billion a year to reduce it any at all and that is presuming they make no new debt. Yes it will take almost 6 Trillion in cuts over ten years to make a difference. Cuts of that magnitude are more than America can absorb and remain a viable country.  That means a way of generating income has to be created.  Having bailed myself out of debt several times I know cuts alone do not do the trick.  You need to make more money to defeat the problem.  Just like the old business adage, "You have to spend money to make money"   The trick is how do you get the money you spend.  Certainly not from borrowing more.  You can not borrow your way out of debt.
      Once you have created a way to get the money you have to keep it out of the hands of those who created the problem in the first place. That requires that the Federal Government can not have access to the money.  They have proven their incompetence beyond the shadow of a doubt.  The states do not do much better.  What is needed is a program where the money goes straight to the states and they manage it.  The Feds role would be only to make sure the money is used for what it is designated for. That would be repairing infrastructure.  It should not be used to pay state debts and salaries.  That would defeat the purpose.
      So how does this work?  As I said earlier we need to get our house in order.  A permanent program to fix America's infrastructure needs to be put in place.  How do you pay for that?  Why  taxes of course, but not one that is handled by the Fed.  It needs to come from a measurable source and provide sufficent revenue to do the job.  America uses fourteen million barrels of oil a day.  That equals roughly five hundred eighty-eight million gallons a day.  Over the period of a  year that would be over a couple hundred billion gallons.  If it was taxed at one dollar a gallon it would create a fund to pay for the infra-structure repairs.  The jobs it would create would generate taxes on payroll that would go to the federal government.  This solves two problems it creates lots of jobs. In just a couple of years it should get almost everyone of the unemployed Americans back to work.  All the jobs would not be construction.  Their would have to be steel for bridges and reinforcement, machines to prepare the sites and do the work.  This creates factory jobs and as those people spend their wages it pushes things forward.  Secondly it creates payroll taxes that generate income for the Fed to pay its debts.
     While a balanced budget amendment sounds nice, it does not necessarily solve the problem.  What is needed is additional income to pay off the debt.  That is not addressed by balancing the budget. You can have a balanced budget and still be broke. 
     Is it to simplistic? Maybe.  However it addresses a perpetual problem, with a real solution.  Taking care of infrastructure is a long term and on going problem.  It is one that needs to be addressed.  If you agree with this idea forward it to a friend and do not forget to send a copy to your favorite politician.  Your comments and opinions are apprecitated.  Both positive and negative.  Thanks for taking the time to read my blog.

No comments:

Post a Comment