Monday, June 13, 2011

Budget Showdown

Budget Showdown

It looks like we will have a government shutdown. The President and the Democrats are painting a doom and gloom picture, The Republicans are claiming they just want to cut the budget. So who is right. Well, both sides actually. Things will be difficult as non esential programs and personal will not recieve funding. Demacrats say we cannot fund the troops. I want someone to explain to me how our men and women in the armed services are not esential? It is the President who decides what is esential and what is not. By the way, he is getting paid during a shutdown. Americans respect and honor our troops, it is time our President does to. In case there are those that thinks the president is helpless here, remember back to the shutdowns of 1995. President Clinton made sure the troops were paid. This is one of those time when history should repeat itself. The republicans propose a short term deal that would fund the troops till the end of the year as well as 12 billion in cuts. The president has threatened to veto if it crosses his desk. The imediate answer is simple. Repubs should drop the cuts and pass the bill. After all the repubs are still bargaining with the Dems on the large cuts.
So how did we get here? As I said, the blame goes all around and goes back over several past Presidents. Each of the past administrations left a deficit larger than the prior one. That accounts for about 10% of the debt. Under the current administration, the deficit has grow faster and larger than any time in history. That accounts for the other 90%. The last election has made it clear Americans have had enough. So why is it that Washington has not recieved the message? After all they are all well educated individuals. Why can they not make a dent in the total expenditures of the government? It is because all parties are not looking in all the proper places to make cuts and dismiss cuts that they say are only a few millions. I am not sure, but I believe when I went to school you can add up small numbers to make larger numbers. Lets face it, as the Dems says the cuts are idiolagical. that is true. Both sides what their agendas to get funded and not cut. So, lets do this to start. Pick a percentage, 5,10, whatever, and apply it across the board. No program is exempt. There should be a rider to this that says noone can loose their jobs or take a pay cut. I will get back to this. Next, lets look at Medicarfe, Medicaid, Social Security. Before any cuts are made the programs should be overhauled to eliminate fraud and waste. I believe if that is accomplished there would not need to cut funding and the programs would not go broke in the short term. Next, eliminate the useless programs, ie, studying the mating habits of bees, building a bridge for turtles, and many more like these. Then the President and Congress will take a 25% pay cut.
Back to pay. The price of products have gone up at an incredible pace, faster than peoples paychecks. For example, in 1978, I was making $15 per hour, good pay for that time. The price os gas was 58 cents per gallon, cereal was about a dollar a box, my van cost me $4900. Today that same van is $ 25,000, gas is $3.80, cereal is over $4 per box. An increase of 5 times in value. But If I still had that same jod today, I would not be making $75 per our. Look closer at prices today, Airlines are rasing their prices because of the large increase of the cost of fuel. During this time non of the employees were given raises, but to reduce costs they want the employees to take a pay cut. How about this, companies should look at the cost of doing business that has increased and try to reduce them. Negotiate better deals on rent, office expences, interest on business credit, transpertaion, just to name a few.
If all these cuts are made to the budget and if companies tighten there belts, there should be no tax increases, employess pay should get better and not cut, the government would run more efficiently.