Ederik Schneider Online

Wednesday, October 26, 2011

"Nick Gillespie Talks Honest Budget Act": What's the right Fiscal Policy for America



There's been a lot of talk certainly since Tea Party Republicans have been put in power in the House of Representatives this year. With the Republican Party taking over the House of Representatives after the 2010 Mid Term Elections. About how to get our Fiscal House in order, to get our debt and deficit under control. So we can eventually Balance our Federal Budget and there have been ideas especially from the Republican House on how to do that. Like with the Paul Ryan Budget, the House writing Appropriations Bills with Deep Cuts in Discretionary Spending. The Debt Ceiling Standoff with the Senate and White House and the Cut Cap and Balance proposal from the House. That includes a Balance Budget Amendment to the US Constitution and actually as a Liberal Democrat. As partisan and divisive as these debates have been, I believe in a way they've been healthy for the country. Even though the 2010 Mid Terms were all about the economy and putting people back to work. But Fiscal Policy and getting out of Afghanistan and Iraq and these relate to the Federal Budget obviously. Since we've borrowed every dime we've spent over there. And have put all of that money on the National Debt Card, has to come right after the economy. As far as how important they are, we'll never get the debt and deficit under control without a strong healthy economy.

Without a strong healthy economy and we'll never get the debt and deficit under control, thats why I believe that all the spending that the Federal Government. Commits to jump starting the economy, has to be paid for, which is why I believe in PAYGO. Which is government for pay as you go, don't spend without paying for what you do. Cutting in another area or raising revenue but without borrowing. I just wish the Republican Party was so bent out of shape about the Federal Budget during the Bush Administration. When they had most of the power but thats a different story. And this whole divisiveness will all be worth it, if we get a law at the end of the day. Passed by Congress and signed by the President that gets our economy going again and also gets our debt and deficit under control. And then so we are in position again to Balance our Federal Budget for the first time since 2000. For that to happen for Congress to be able to pass anything like that. Its going to have to be balance, hit the people that can afford it, cut where we shouldn't be spending as much. And reform things we need in order to make them work better.

My Fiscal Policy would look like this, PAYGO meaning no more borrowing under any condition. Except when America is directly under attack, where we are attacked literally inside the United States not a US Foreign Base or Embassy. Or in a recession or a depression but then be required to pay that money back. As soon as the economy starts recovering again. By a Foreign Nation or a Terrorist Group, that means budgeting for defense and putting money away, as well as in Disaster Relief. May sound harsh but we can do it that would make those operations even better. Reform and Consolidate the Federal Government combining some Federal Departments, turning our. Safety Net over to the States to be run as Semi Private Non Profit Community Services. Tax Reform eliminate most if not all Tax Loopholes and subsidy's. Scrapping the Income and moving to a Progressive Consumption Tax and closing all US Military Bases in Europe, Saudi Arabia, Korea and Japan. And demand that those Developed Nations defend themselves.

And also frugal policy's like get our Federal Budget down to around 15-20% of GDP instead of 25% where it is today. The Federal Budget has grown by around 20% the last ten years at that is the main problem. Along with two recessions and we need to get down to a more affordable rate. Not allowing the Federal Government to grow more then the economy, inflation and population. If we do things like this we can get out debt and deficit under control and move to pay them off. Assuming we get Economic and Job Growth going again.