Republicans Not Really Showing They Intend To Backup Their Tough Talk On Debt
Republicans are back in power at least with regards to the House. The Obama-created debt commission has offered a range of solutions that would help cut the deficit and bring the Federal debt back under control.
Note that their recommendations are not intended to balance the budget, but to merely bring the deficit to a level of something like $400 billion annually. So, we’re debating intensely on the ways to bring the deficit down to $400 billion a year, not to bring the deficit down to zero. That should tell you something. But I digress.
The immediate reaction to the recommendations such as pushing back the retirement age, raising certain taxes, etc. have essentially been met with big “No” from both sides. The progressives want entitlements untouched, and the newly elected Republicans want to cut government but ignore entitlements. So, entitlements, which are the main cause of the fiscal problems will likely be ignored.
I’ve seen a few interviews by Republicans explaining why they don’t like certain recommendations by the debt commission. Newt Gingrich explained how we can solve this problem without inflicting pain on Americans. What a stupid concept. It’s like saying you can pay off $100,000 in credit card debt and still go out to eat every night, drive around your $50,000 car with $600 monthly car payments and buy a new iPad every month.
If the Republicans think they can remain in power or make progress without addressing the entitlement situation, then I hope they all get thrown out on the street just like a bunch of Democrats just did a few weeks ago.
The Debt Commission essentially gave a bunch of possible ways to address the debt. They all involve pain. Are you surprised? When you try and pay down your own debt, is it fun? Of course not. It requires cuts and sacrifices. Americans are unwilling to swallow such sacrifices these days and thus, politicians are unwilling to deliver the bad news. I don’t see this changing until something big happens. What that “something” is, your guess is as good as mine.
But while this stupid, political circus continues, I will buy gold which is essentially me voting that none of this gets fixed.
What do you think? Is there any chance of fixing the debt issue?