It is a fact that the U.S. economy is deeply in debt and seriously over extended. Approximately 52% of every dollar spent by the government is "borrowed". THAT is precisely why the national debt has gotten to be as large as it is.
It is also a fact that until the "deficit" is reduced to zero, we will have done NOTHING to reduce that "debt".
It appears that those in Washington have already decided to raise the debt ceiling and are now merely arguing about how to make it look like "the other side" did it. This amount to just kicking the problem into the future so someone else can deal with it. Raising taxes or cutting spending by a few Trillion dollars here or there will NOT solve the problem.
The solution should be blatantly obvious, to reduce the debt we must stop borrowing 52% of everything we spend. Besides, if all we do is get rid of the borrowed money, we still will only be breaking even and this crippling debt will not decrease. We need to go further. We need to reduce the DEBT!
To get rid of the excess 52% one of two things MUST be done. Either taxes need to be raised offset the need for borrowing or spending needs to be cut so that borrowing isn't required. BOTH courses of action require very hard choices. Even if we did some of both, the taxes and cuts required are enormous. NOBODY will enjoy this -- but it needs to be done!
The above chart illustrates how the government currently spends our tax dollars. The pie sections represent opportunities for spending cuts. It should be obvious that offsetting the borrowed 52% through cuts will require huge reductions in spending for both Military and Human Resources sectors. They both will need to be severly cut because there are no other sectors of government spending that are large enough to yield the needed reductions. No one in washington wants to do that because it would be political suicide -- but they SHOULD consider doing it.
The above chart shows the sources of tax revenue that is spent by the government. If we exclude the amount acquired from borrowing, we find that individuals contribute about 72% of the non-borrowed revenue while corporations contribute less than 16%. Obviously, if taxes were to be increased to offset excessuive borrowing, it might make sense to focus on corporations and other tax sources rather than increase taxes for the already burdoned individual taxpayer. No matter what, tax revenues from all sources would need to be more than doubled in order to offset excessive borrowing. This too, would be political suicide -- but hefty tax increases from non-individual sources SHOULD be considered.
Fixing the debt will require very HARD CHOICES!. Failure to make these choices now only means that more difficult choices will be need in the future. Meanwhile, the debt continues to increase at an exponential rate and jeopardizes the very freedom of all Americans.The people in Washington can not and should not shirk their responsibilities for political gain. They must stop their posturing, put politics aside, and lead We The People through the hard times ahead.