Government spending must be cut. The national debt exceeds the annual GDP. Total unfunded liabilities are 14 times as much, more than $200 trillion. Government spending once again must be cut.
Unfortunately, the biggest pots of money have the largest number of dedicated guardians. Interest on the national debt must be paid, unless Uncle Sam is prepared to default, like Greece. Seniors form a phalanx around Social Security and Medicare. Medicaid already ill serves the poor and underpays doctors. The military-industrial complex fights as hard for weapons spending today as it did against communism during the Cold War.
About all that’s left is domestic discretionary spending, roughly 15 percent of the budget. Most everyone in Washington talks about freezing or cutting these outlays, but nothing ever happens. Politicians want pork to distribute and interest groups want grants, loans, loan guarantees, tax preferences, and all manner of other privileges funded by government. Whether Republicans or Democrats are in control, the taxpayers’ money continues to be wasted.
Last year the deficit was $1.3 trillion. That means every “discretionary” outlay effectively came from borrowed money. Loans that must be repaid. By taxpayers in a weak economy made permanently smaller by the diversion of otherwise productive resources to political projects.Continue Reading on www.forbes.com