With only a week to go before the August 2nd debt ceiling deadline, nether the Democrats or the Republicans can come to some sort of an agreement as to what to do to save the country from defaulting on it’s debt. Both side are more concerned with next year’s election than actually doing what is necessary to cut the deficit.
There are billions of dollars being spent on programs that do nothing to increase jobs in America or to raise GDP. Instead of talking about those items, both parties are using scare tactics about Social Security and Medicare. Two things that will get the American voter engaged in doing something next year at the booth.
At the same time, the Democrats are feeling the pressure from the labor unions telling the Dems to stand firm on Social Security and Medicare. While I strongly believe in keeping the benefits of the two programs in place, there are other areas of the programs that can be cut. Such as administration costs of the program. We all know that government offices have to many employees in each of the different offices. They can not tell us that there is no way to cut at least 15-20% of staff within each of the programs. Most of the system is automated and to have so many employees in the system is taxing on the program itself.
The federal government has known about this issue for months now and have touched on the subject, but they wait until now to really get involved in it. Why is it that they wait until the last minute to do something? It’s because with the pressure of time, they can push the bill through quickly and claim later on that they didn’t realize what was in the bill since they didn’t get adequate amount of time to go through it. Of course the American people have short-term memory and forget that they waited and that’s what the politicians hope for, so they can do it again.
So as we see the politicians are trying to draft anything to get a majority of the politicians to vote yes on extending the debt. The Republicans in the House of Representatives have unveiled a two-tier plan that will cut $1.2 trillion over a ten year period and will only raise the debt ceiling for a few months. Obama has already expressed that he will not sign it because it’s a temporary fix.
Meanwhile the Democrats have presented their own plan to cut @2.7 trillion over the next ten years, but with a debt limit hike that will carry it through the 2012 elections. An election where Obama and many lawmakers will be up for re-election.
As we see over the last decade that the situation is getting worse as in the politicians doing what is necessary to get the fiscal condition of this country back in order. It’s always a temporary fix and not a permanent one. Each time the debt ceiling has come into play, politicians never cut the spending that is needed, instead they draft plans that cut spending in the future, not in the present. What happens is the cuts never come, but the spending and the raising of taxes always do.
We are coming to the end of the fuse and if we, the American people don’t do something to change the mindset of Washington, we will be finished sooner than later. This has gone on for way to long and it will come to an end one way or another.