Thursday, August 18, 2011

Super Commitee best of the worst!

The debt deal that passed the U.S congress was seen as a compromise that no base of either side was happy about. I think that the first part was okay as it did address some problems with the deficit, but it didn't hit it's core. The core of the Deficit is much bigger than this deal. In fact even if the super committee comes with double than what they were asked for the deficit will still be unsustainable. The Super committee is being asked to find 1.5 trillion over ten years. That's 150 billion a year the deficit is much bigger than that. I like the idea of finally addressing the deficit, but 150 billion plus 100 billion equal 250 billion a year on average. Now this would cut the average Bush deficit in half, but now and in the future the deficit would still be much bigger. The U.S needs to increase taxes. The problem is that the people in the super committee are too close to the base. The Republicans are going to be against any tax increases or loop holes elimination, the Democrats are going to protect social security and medicare, and what going to happen is that they are going to agree in cutting 150 billion a year in discretionary spending. Discretionary spending is about only a quarter of all spending and declining because other parts of the budget are rising faster (Medicare, Military and Interest on the debt). Continue to attacking discretionary spending won't make long lasting effects on the deficit. Super committee isn't good , but the Congress is even worse. The only thing the super committee has going for it is that it is only 12 people not 535.

The Super Committee could work if it's job is to find at least 8.5 trillion dollars to cut or tax over the next 10 years, and that will force the super committee to find more than just discretionary spending to cut. If their job was to balance the budget not to just cut minor amounts here and their then they would be forced to look at the big picture, but right now the best I can see the committee doing is nothing more than just cutting discretionary spending by 150 billion. As taxes is out of the question for the Republicans, and Medicare and Social security is out of the question for the Democrats. The U.SA will very soon be forced to tackle the deficit right now their still playing with it.

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