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How To Fix The Budget Death Spiral Problem

February 14, 2010

Are there no real leaders anywhere in the federal government? The debt crisis mounts and no one in either party has emerged with the leadership it requires. We seem to be at an enormous impass—the Republicans wanting to cut taxes, the Democrats wanting to increase spending. And we slide closer to bankruptcy. But the problem is fixable if we act NOW before we go under. I am confident that if a leader stood up and told the truth that all Americans are going to have to sacrifice to truly transform our system, the people would follow. Here is a simple set of solutions to solve the problem:

1. Immediately freeze defense spending at 2009 levels until the budget is balanced.

2. Repeal Obama’s health care legislation.

3. Cut the budget at the Department of Education by 5% every year until the Department is dissolved in 20 years. 

4. Immediately freeze all other federal spending except Social Security and Medicare at 2005 levels.

5. Immediately begin to scale back Social Security and Medicare with the long term goal of eliminating these programs. Specifically, cut back the total spending on these programs 1% per year every year. In 25 years we would have them down to 75% of current levels—a manageable number. In 100 years they would be gone. The private market will gradually pick up the slack and eventually replace these public programs.

In addition, we would begin the constitutional amendment process for 3 new amendments:

1. Limit total federal government spending to 20% of the previous year’s GDP (or a five-year average), to be effective 5 years after passage. Year-to-year exceptions would be allowed in national emergencies including a declared war, but only by a two-thirds majority vote of both houses of Congress. See http://www.washingtontimes.com/news/2010/mar/08/stop-the-orgy-in-congress/.

2.  Allow all federal judges to be removed from office by a 60% vote of the people. All federal judges would appear on the ballot at each presidential election.

3. Require a detail of every proposed law and every detail of the federal budget to be posted online. This would include the salary of every federal employee.

One comment

  1. I would add one more thing: repeal the 16th Amendment and replace the totally-broken current income tax system with either the flat tax as proposed by Steve Forbes or the even more radical “FairTax” system. Just this change would ignite our economy upward so fast that all that supposedly commercial real estate now considered worthless will effectively become nearly priceless as American companies bring back millions of outsourced jobs and foreign companies want to bring over jobs to take advantage of the USA become the world’s largest legal income tax haven.



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