There is lots of talk around Washington these days about the debt ceiling. Specifically about whether or not the Republicans will vote for raising the limit. There are many thoughts out there. Here are some of the things being thrown around.
Cutting a deal on a balanced budget amendment. The thought being the Republicans can get the balanced budget amendment through if they vote to raise the debt ceiling. What is it about a balanced budget Amendment that we keep hearing about it. To me a balanced budget amendment is tantamount to Congress becoming its own parents and setting limits on itself. Well if they can't do that without the amendment how long will it be they alter it for this exception or that. Besides with our current debt balancing the budget will not achieve debt reduction.
Altering entitlements. While this is the third rail of politics it is also the cause of much of the increase in spending and does it automatically. Once these entitlements start the outflow is hardly what you would call regulated. So this is where the emphasis should be. How do we effectively reign in spending on entitlements without depriving the recipients of some security? Raising the age is one option as we are living longer and there are people who work until they can't work anymore. We could gradually raise the retirement age to 70 by doing it gradually going up to 66 in 2012, 67 in 2013 and so on. This would be for all entitlements
One more is cutting non-discretionary spending. Numbers are being thrown around but whatever happens it has to be big billions not millions here and there. Cutting agency spending and costs would save money too. As agencies have instituted policy without Congressional oversight (a flaw in the creation of each agency, giving them power to regulate) The congressional oversight committees themselves should pour over the mundane and duplicitous regulations and have an up or down vote on all of them. Cutting back on Government regulations would free business up to possibly begin to manufacture here again. But it is one step. read more »