I want to start this with two definitions that should be the cornerstone of our fiscal policy and so very necessary for the citizenship to understand.
Liability: An obligation that legally binds an individual or company to settle a debt.
Unfunded Liability: The amount, at any given time, by which future payment obligations exceed the present value of funds available to pay them.
Most citizens know how much they earn on their paychecks (value of resources) from our labors. We then budget for our living expenses such as house mortgage, car payment, cell phone, etc. (Liabilities). This budgeting determines how well we live and with what kind of luxuries we can afford. If we then promise to pay for additional liabilities such as a boat, motorcycle or agree to assist a family member with their liabilities (and you don’t have the funds to cover these debts) they then become your “Unfunded Liabilities.”
Now let’s take a look at our National Debt. This New Years Eve as the countdown began I brought up the National Debt Clock at http://www.usdebtclock.org and took a screen shot right at midnight central time so I would have exactly what all the numbers are at the very second 2017 began, 20 days before this current administration ends. In only ten short days, our debt has already risen some Two-Hundred Billion Dollars.
At that time our official national debt stood at $19,749,552,792,228. That is $165,097 per taxpayer. In 2008 the national debt was $9,606,079,565,238 with the debt per tax payer at $89,327. To see how fast this real time debt clock ticks away is absolutely scary. The #1 reason for this quickly rising debt is, in fact, the unfunded liabilities, that politics created, and that is not pointing out the waste and fraud that is at a minimum of 25% throughout all government programs and agencies.
This sort of spending is untenable and needs to stop before we permanently cripple our economy and nation. It is a proven fact that we cannot tax and spend our way out of this dangerous situation.
America’s current population stands at a little over 325 million with only some 119 million of them paying taxes! Shockingly some 27-million or nearly 25% of our nation’s workforce is now part-time. With only 46% of the population working with some 36% of those paying taxes, it is insane even to consider asking those to pay more taxes when 64% do not pay into the system.
It is even more ludicrous to think that taxation would even slow down the rising debt as a whole which is approaching 20 Trillion Dollars!
I believe we have arrived at the point where we do need tax reform but in the form of a Flat Tax leading in the future to a Fair Tax. This would be the solution to counter ANY talk about “fair share” in this effort.
But like I said, this is not the only answer with the long-term debt issue.
Jobs is another matter that needs to be assessed. In the year 2000 there were 17,283,959 manufacturing jobs in the U.S. and now only 12,255,402 manufacturing jobs left. That is a 5 million + loss of jobs. Huge government regulatory eliminations have to happen, as a solution, to ease job creations for small businesses.
All of this is true, and those solutions need to be sought after. However, the important issue at hand is why I started this article the way I did with those definitions. We simply cannot continue with 4 trillion dollars a year in spending with an income tax revenue of only 1.6 trillion dollars, we just cannot sustain this kind of governing as the unfunded liabilities are destroying us. Our debt is higher and climbing faster than the “value of funds” our economic production is giving us. Our federal spending is up 129% and our U.S. national total debt is up 163%.
I remember back in 2007 and 2008 the progressives were screaming that President Bush had our Gross Debt to Gross Domestic Product ratio hitting 70% and our economy would collapse if we didn’t do something. As of Jan 1, 2017, the ratio has risen to a staggering 163%! Again it is stupidity to believe that we can continue down this path.
Like you; I have to budget my families personal expenses. At times we must tighten our belts, pull up our big boy pants, and bite the bullet on some expenses. There are times when we must go without until our financial obligations are met and back on track. The EXACT same thing needs to happen with our country. I realize it is politically incorrect for a politician or political party to apply fiscal discipline and purpose, but we the people have got to stop them from this continued kicking the can down the road.
We cannot grow nor progress through the taxation rape of the people. We have to change our spending priorities. Our elected officials need to follow these few suggested steps and make these hard decisions and get the healing started, so our future will be secure.
- Assess our government and identify all waste and fraud throughout our entire government, using the Lean Six Sigma (LSS) process. This alone will cut 25% of our spending by eliminating needless waste. Then give a detailed report of the assessment findings and pass a spending law that meets this need and makes sure LSS is attached to every future bill moving forward.
- Begin the implementation of the Penny Plan on all future government spending. Which is simply taking one penny of every dollar spent and placing it on our deficit and debt until we meet a balanced and have paid off debt.
- Create a new law that no earmarks will be added to any bill that does not directly relate to the focus of the bill. For example, a farm bill will only have farming earmarks in it. That means Congressional Representatives will have to say “No” more often to the lobbyist.
- Assess all government regulations in every department being forced on the smallest of businesses, to the largest companies. This will enable more job creation in our nation for everyone at every class and business level.
- Also promote in our school systems that educational priorities should focus on reading, writing, and mathematics, as we return our education system back to the local communities and parents.
- Put in a transitional flat tax in place leading to a more permanent fair tax in the future.
If we do these six things, we will see the nation’s debt clock slow down and even reverse to begin the paying down of our debt. Our future will look healthy again as it should be if we accept the hard choices that need to be made. We have just got to stop doing business, as usual, that place larger burdens on all classes of our population. We need to eliminate some governmental programs and focus on the discipline of our financial structure while we tighten our belts, put on our big boy pants and bite the bullet. We the people need to make our elected officials prioritize spending needs by using the Constitution as the directory handbook as it is supposed to be used as and stop all these stupid earmarks that jam their way onto our spending bills. So as we move forward, try and be part of the process and sign petitions putting pressure on our elected officials to truly work for the people and our Republic, being accountable to our Constitution.
“Charlie Mike” (Continue the Mission)