Once again, the special interests are sharpening their knives to go after Social Security and Medicare. I mean, Council for Foreign Relations’ “Renewing America” project? The name alone makes me want to puke:
While other large wealthy countries have been cutting their entitlement programs, the United States has left Medicare and Social Security mostly untouched. Recent U.S. budget cuts have instead focused on discretionary spending, which goes toward areas such as education, infrastructure, and research and development—all of which constitute investments in future economic growth.
“By 2040, public debt is projected to top 110 percent, equal to the highest levels reached during the Second World War,” Renewing America Associate Director Rebecca Strauss writes. “And absent any policy changes it will likely keep climbing afterward into uncharted territory for the United States.”
Americans will have to make difficult choices to get the public debt load under control. Sequestration, which took effect in 2013, only affected government spending projected to decline as a share of GDP. Meanwhile, U.S. policymakers left cutting entitlements or increasing tax revenues largely off the table, despite the fact that entitlements will account for nearly all new federal spending in the future.
“Just to slow debt growth to the rate of GDP growth (or a steady debt-to-GDP ratio) from today through 2040, changes to current policy would have to be dramatic: cut entitlements by 10 percent, cut discretionary spending by 23 percent, increase tax revenue by 6 percent, or some combination of the three,” Strauss notes. “Adjustments to actually lower the debt-to-GDP ratio would be even more painful.”
You already know why this is crap, right? I don’t have to explain why all over again?
H/t Price Benowitz LLP.
Raise taxes on the to 10% and cut military spending by 50%. Let’s try those solutions first to see if they help to reduce both the deficit and debt? Speaking of productivity. It rose by 2.3% in the 2nd quarter. Have you seen an increase in your paycheck lately? Have you seen a paycheck lately? That 2.3% increase in worker productivity went directly into the pockets of the oligarchy (1%). A few fewer billionaires and millionaires might go a long way in correcting our broken system.
“Renewing America” Neo-royalist slang for fuck everyone but us.
I was in Ecuador a few years ago, where large haciendas owned by the 1% had been the norm for hundreds of years. Most of the owner class was made up of European descendents, while all the work was done by the indigenous people. The economy was in the toilet.
About 15 years ago, the country took a step to the left and elected a more progressive government. They broke up the large plots of land, some in the tens-of-thousands of acres, and gave the land back to the people. The economy exploded as people working for themselves produced more. Every small business had thousands of new customers as the poorest dirt farmers began to buy shoes and clothing for their children, and a few amenities for their homes.
Economies are demand driven. It does not matter what type of business is funded by the ‘job creators’, if there are no consumers with discretionary income – the business will fail. Renew America by raising the minimum wage, and consider a maximum wage.