Washington needs to recall unspent stimulus dollars, repeal Obamacare, and get its fiscal house in order, now
Just two years ago, pundits and politicians pounded
These numbers are unsustainable. Doubling the national debt will significantly harm the economy and place an obscene financial burden on our children and grandchildren.
Much of this election was about our nation's rapidly deteriorating fiscal condition. Fixing the budget is paramount; however, it must be done in the right way. Simply focusing on deficits and aiming to balance the budget without identifying the underlying problem could mean all solutions are treated equally. Yet some solutions, such as steeply raising taxes, can cause more harm than good.
That's not the only reason to focus on spending restraint. Tax hikes reduce incentives to work, save, invest, and create jobs, which is why no economic theory advocates raising taxes in tough times. The better way to raise revenues is to focus on pro-growth tax policies -- starting with retaining the 2001 and 2003 tax relief -- that can put 15 million unemployed Americans back to work.
Addressing soaring spending begins with reforming
While waiting for those reforms,
They should start by tightening their own belts: freeze federal compensation until it is reformed, cut the bloated federal travel budget, rescind unspent appropriations, and cut
Spending cuts will not harm economic recovery. Every dollar
In the past decade, inflation-adjusted federal spending has leapt from
Read why balancing the budget should not be a priority, by
- The Consequences of Fiscal Irresponsibility
- America's Two Economies: Why One Is Recovering and the Other Isn't
- Michele Bachmann's Plan to Fix the Economy
- Achieve Balanced Federal Budget Through Spending Restraint
- Unemployment Trumps the Budget Deficit
- GDP Now Matters More Than Force: Policy for the Age of Economic Power
- What Population Growth and Decline Means for the Global Economy
- Why the Retirement Age Is Increasing
- Dr. Bernanke's Magic Elixir for the Economy
- How Quantative Easing 2 Could Affect Your Money
- QE2: Potential Winners and Losers
- Globalizing the Energy Revolution
- Obama's First Stand
- The Politics of Budget-Cutting
- America Checks Into Rehab
- Interest Rates Drop Again But Will Housing Market Perk Up?
- G20 Summit: Hitting Singles in Seoul
Achieve Balanced Federal Budget Through Spending Restraint
(c) 2010 U.S. News & World Report