Friday, August 17, 2012
FRSFreeStateNow: President Obama vs. Mitt Romney: Fiscal Issues: Lacking Serious Plans
To put it simply and bluntly as well as truthfully, neither Mitt Romney or President Obama has a serious Debt and Deficit Reduction plan. That they would try to push through in the next Congress, Governor Romney talks about the need for Deficit Reduction and the need for Budget Cuts. But doesn't really offer any, mild cuts in Domestic Spending while increasing the Defense Budget. And cutting taxes across the board, while raising taxes on the Middle Class, the Tax Cuts that were in the 2009 Recovery Act. President Obama talks about the need for Deficit Reduction and I guess what he would call a Budget Summit and bringing all the key Leaders from Congress and perhaps the Private Sector. To talk about how we should go about Deficit Reduction and he calls for a balance approach, that would include Budget Cuts, where the whole Federal Budget would be on the table. Including entitlements and in defense, like with the drawdowns in Afghanistan and Iraq but his plan. Except as it relates to taxes, where he would let the Bush Tax Cuts for the wealthy expire and raise new taxes on the wealthy. The Obama Plan is mostly goals rather then policies to achieve those goals.
To actually solve the problems of the debt and deficit, takes an actual serious plan just because of how large the problem is. This is not 1990 or 1993, when the deficit was a couple hundred billion dollars, the deficit is now ten times that, representing over 12% of the GDP. The debt is now approaching 16T$ about four times as much as it was twenty years ago. And now as large as the total economy as well, so raising taxes here or making Budget Cuts here but not to the point. Where it doesn't offend anyone who might contribute to your next campaign, will not solve the problem, the next Deficit Reduction Package and thats exactly what it will have to be. Where the whole Federal Budget will be on the table, will have to include new revenue, that doesn't have to be Tax Hikes but additional revenue to pay down the deficit. And doing it in a way that doesn't hurt the economy, Budget Cuts cutting things we don't need or can't afford. And making thing we do need work better and more Cost Effective.
Both Mitt Romney and Barack Obama may understand this, which is one reason why I believe President Obama appointed the Bowles-Simpson Commission back in 2010. Because he wanted to see a serious plan to address this problem, even though he didn't endorse the plan from his own Commission. But neither one of them has a plan to solve the problem, because they are both worried about offending people that it would affect.