Can We Just Say No!

We are facing an unpleasant reality.  The Federal government is currently spending money at a rate 1½ times the rate of incoming money from taxes.  That is fact, not internet chatter.  Even worse is that the total national debt equals one year of GDP.  Imagine if your personal debt excluding your house mortgage (a planned long term commitment) equaled your total annual income.  The banks would increase the interest you would be required to pay on that debt because they would fear the possibility of default.  Unlike everyone else in America, the Federal government can print the money it needs.

The Congress and most people realize the situation is desperate.  The difficulty is saying “no” to the pressure for continuing the spending.  There are those in Congress who want to extend existing programs and add more for one simple reason.  It is an election year. 

Some examples of programs wanting more money:

• There has been a subsidy to recently unemployed people that provides for 65% of the cost of COBRA for a total of 15 months.  That program expired May 31. 
• Unemployment benefits have been extended to 99 weeks.  The House voted to extend the benefits and now the program awaits Senate approval.  
• Medicare doctors are looking increased payments. 
• States want more aid due to their unbalanced budgets. 
• The SEC, FDA, Interior Department (think mineral management) and other Federal agencies want additional funds to do a better job. 
• The State of California wants money to do a demonstration of high speed rail. 
• Los Angeles wants the Federal government to provide aid for speeding up subway and light rail construction. 
• President wants $50 billion in state and local aid to avoid “massive layoffs of teachers, police and firefighters” and to support the still-fragile economic recovery.

 

Everyone wants the projects but there just is not enough money.  Can we just say No?