By Jason Sattler

What The GOP Won’t Tell You: Our Debt Is Nearly Stabilized

February 11, 2013 6:05 pm Category: Economy, Memo Pad 43 Comments A+ / A-

Even without the sequestration, America’s debt will be completely stabilized at 73 percent of Gross Domestic Product by the end of the decade with just $1.5 trillion more in savings, according to a new study from the Center on Budget and Policy Priorities.

The cuts agreed to in 2011 and the savings from letting the Bush tax breaks on the richest 1 percent expire have already put a serious dent in the short-term debt expectations.

Stabilizing the debt with $1.5 trillion more in savings — $1.3 trillion from cuts and $200 billion from interest savings — will give policymakers breathing room before making serious cuts to Medicare or Medicaid, where — as White House spokesman Jay Carney pointed out today — our spending problem really is.

“One concern is that enacting steeper deficit reduction now could lead policymakers to make decisions, particularly in the health care area, where desired solutions currently are elusive and where knowledge about effective ways to slow health care cost growth is likely to be greater in coming years due to changes underway in the health care sector and various research and demonstration projects,” the study says.

Our real spending problem right now is that we’re not spending enough.

As President Clinton told House Democrats on Friday, America both needs to avoid cuts in the short term and also recognize that we have a long-term debt problem, especially if interest rates begin to rise. This study says we can do both.

But first we need to avoid the sequestration, which could easily cost the economy 600,000 jobs just as the housing market begins to show some serious signs of recovery.

Until the deal on the “fiscal cliff,” Republicans hated the sequestration — it was designed for them to hate it, with most of the cuts coming from defense.

But the Party of Reagan has become the Party of Norquist.

Smarting from the uncomfortable and unfamiliar feeling of compromise after the “fiscal cliff,” they decided that they could never ever ever agree to any tax increases again. They decided to simultaneously accept the sequestration and blame the president for coming up with it.

They’re hoping that the public forgets that they forced the sequestration when they refused to raise the debt limit without cuts. And they voted for the cuts.

The Washington Post’s fact-checker, Glenn Kessler, looked at the Republicans’ attempt to stick the sequestration on the president and found “…Republicans agreed to this plan and thus also are equally responsible for the looming across-the-board cuts, absent a bipartisan agreement to delay or change them.”

In 2011, the GOP refused to pay for the debt they help rack up. In 2013, they’re blaming the president for a bill they voted for, all in the name of a debt problem we can easily control with a small balanced  deal of cuts and ending tax breaks.

But clearly the GOP is more concerned about punishing the president than dealing with the reality of of the situation.

 

 

What The GOP Won’t Tell You: Our Debt Is Nearly Stabilized Reviewed by on . Even without the sequestration, America's debt will be completely stabilized at 73 percent of Gross Domestic Product by the end of the decade with just $1.5 tri Even without the sequestration, America's debt will be completely stabilized at 73 percent of Gross Domestic Product by the end of the decade with just $1.5 tri Rating:

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  • Sand_Cat

    “Only” 1.5 trillion in cuts?

    Surprise, surprise: the party of “personal responsibility” never takes responsibility for anything.

    But let’s get right to butchering Medicare and Medicaid; when we’ve completely wrecked those, the Republicans will go for the ultimate goal: wreck Social Security. And all along they’ll be able to blame the Democrats – truthfully, for once – for the mess.

    When will Obama and the Dems in Congress learn that these programs are the core values of the party; allowing their destruction in essence destroys what’s left of the party, or at least its raison d’etre? (for you trolls, that’s French. To avoid giving offense, I left off those effeminate diacritical marks, and maybe even misspelled it)

  • FredAppell

    Smoke and mirrors, instead of actual cuts to those programs, they’ll probably just keep raising the eligibility rate for future generations. I would like to see the Medicare, medicaid, and Social Security programs preserved but i’ll probably be dead before I qualify for any benefits. As much as I would like to, I can’t place blame squarely on the Republicans. Democrats must share responsibility.

    • Inthenameofliberty

      Your cooler thinking prevails again.
      Hope you are well.

      • FredAppell

        I’m good, how are you stranger. I didn’t think I’d hear from you again. I don’t come here that often anymore. Maybe three or four times a week. It keeps my mind sharper and more focused if i’m not here all the time.

        • Inthenameofliberty

          The new year’s been rough on my family with illness, but we were all better until the flu emerged today.
          Sigh. This, too, shall pass. Hopefully without taking out the whole household with the flu.
          It is interesting to me to see the well-thought out arguments on this page. Makes me think twice, re-arrange my perspective a little bit.
          Still learning to tone it down. Yes, sometimes the tone on this page can be so negative. Brings others down to the tone of the person posting [guilty!]. But at least some people care enough to debate, I suppose. I know so many people that think all politicians are scum, and will never talk politics and will never vote.
          That’s why poll numbers are annoying to me. Too many people have had enough, and don’t care to vote in them. I need them to come out and vote. I need someone to inspire them in politics, so much, that all those many, many people actually decide that voting will mean something. Little more than 1/2 the people who can vote, do [right? according to Wikipedia at least].
          Can you only imagine what could be done if those that stayed home, those that think that we are idiots for wasting our time on pages such as this, actually got up and went to the polls?
          I think we’d have ourselves a third party race, that’s what I think. And maybe corruption would take take a downward turn for the better. As it is, things just aren’t going too well and finger pointing is worse than usual.
          A funny quote comes to mind: I dream of a better tomorrow, where chickens can cross the road and not be questioned about their motives.
          Be well, sir! Be well.

          • FredAppell

            I’m sorry to hear about your household contracting the flu. I paid $30 at my local Walgreens Pharmacy for a flu shot. So far so good. Seeing as how I am uninsured I think that was a pretty good deal.

            You’re not the only one who’s perspective is changing. It is happening everywhere as many of us are realizing that our trust in the system is being betrayed by career politicians and the extreme wealthy.

            I don’t want to get off topic from the story above so I want to clarify my comment about raising eligibility rates. I sincerely
            hope that no cuts are made but we have already seen some of the eligibility rates for Medicaid go up due to ACA so there is no reason to believe that it won’t continue, barring some miracle.

          • elw

            Fred I would like to know where you get your data that connects Medicaid eligibility to ACA.

          • FredAppell

            Do your homework. Just recently there was an article on this very forum about who was eligible for Medicare/Medicaid extension under the Affordable Care Act. I found out that I make too much to qualify for the program.

            I may qualify for a subsidy but there is no guarantee. Even with the subsidy, the amount
            of the premium that I would be expected to pay is still much more than I can reasonably
            afford. I suspect as time goes by you are going to hear more and more stories similar to mine.

            By the way, my data comes from my H&R Block Tax and Health Care Review and in case it wasn’t explained to me properly or I somehow misinterpreted it, it doesn’t look good for me.

            You should also be aware of the penalty for not being insured by 2014. The tax penalty doubles every year.

          • elw

            I am a retired Health care professional and have worked more than 40 years in both the private and public health care systems. I still consult. One thing I have to point out to you. ACA is not about Medicare or Medicaid; it is about health coverage for people not eligible for those two programs. Yes you are right; Medicaid extension eligibility is connected to income. Always has been, always will be. The State run insurance exchanges which are scheduled to begin in 1/2014 are for private health insurance companies who will compete for your business. The State run insurance exchanges which are scheduled to begin in 1/2014 are for private health insurance companies who will compete for your business. At this point no one could possibly be able to tell you what that insurance would cost you. That insurance will likely be more expensive than the government subsidized Medicaid coverage, but that is because it is connected to the private market place which is profit motivated.

            Medicare is a whole other thing; it is for people over 65 and some cases people with long term disabilities. They are two separate programs, paid for two separate ways and should never be talked about as if they are one program. You are most likely not old enough to qualify for Medicare and I would guess not disabled since you are working. Where you got your data seems a mute point given your circumstances (although I do not consider H&R Block or Health Care Review the best sources for information). Sorry you are disappointed. ACA was a compromise and not good enough as far as I am concerned, but it is a good start. It will still leave 25-30 million hard working Americans without healthcare insurance. Until we get universal health care coverage in this Country, someone is always going to be locked out of our health care system. If you think you might qualify for Medicaid coverage your best bet is to call your state office directly.

          • FredAppell

            While I am more than satisfied with the information you’ve given me and also a bit humbled by it as well, there are some issues you mentioned that still trouble me. H&R Block is handing out the Health Care Review information to every uninsured client. They have a website dedicated entirely to the Health Care Reform. Whether or not their information is biased I can not say. I have not visited their website yet. I only know how it was explained to me while I was there.
            The other sobering news you gave me is that 25-30 million hard working Americans
            will still be without healthcare. I doubt that we will eventually have anything remotely resembling Universal Healthcare. Not if the politics stays the same. Your absolutely right when you said someone will always be locked out of our system.
            I may be one of them.

          • elw

            I cannot address H&R Block at all, except to ask why is a company that prepares tax returns so involved with health care reform? I can only guess they see some kind of profit in it somewhere. I know that 25-30 million uninsured Americans sound horrible, but right now there are close to 60 million without access to insurance, so it will be an improvement. Let’s hope the the exchanges work out better than anyone thought they would and you find that you can get coverage through them. I do not agree about Universal Healthcare. If enough voter demand it, we will get it. No one ever thought we would get Medicare or Social Security, but we did because there was big support from the public for both programs. Never give up hope.

          • FredAppell

            I am so on board with that, you can’t even imagine. I sure hope your right because i’m starting to lose faith.

          • Inthenameofliberty

            This next year is going to be a roller coaster. I am settling in and getting ready for the wild ride!

    • joeham1

      Fred your right on! Most of the people who post on this site spend all their time blaming the republicans for wnything the President does. In return the right generally blames the lfet for our troubles!

      If the people who post here would give up thier hate for the right and realize both parties need to fix the issues. The dems need to get out form under the unions and Hollywood and the right need to tell big business they will do what’s right for the people!

      • FredAppell

        Don’t get me wrong. I’m left of center but I see both parties as the problem and not the solution. Quite frankly, I don’t see where either party is offering the American people any substantive answers. Just a bunch of rhetoric and misdirection.

        Hollywood is fickle but I know that there are some unions who are good for its members. Hell, I wish I had some of their benefits but like everything else,
        there are some situations where abuses occur. As much as I hate to admit it,
        If I expect big business to stay out of politics so should the unions. One solution would be for us to do away with the two party monopoly we currently have. At least that would be a start.

  • Richard Eastridge

    really da how stupid is this retarded idiot think we are like the world worst liar obozo. Dude who wrote this article shut the F up really improved , the only thing that has improved is the money spent on their lavishing vacations 17 million in just one trip , he has been 6 vacation just this year. so just be the hell quiet and stop lies like obozo does everytime he opens his month

    • http://www.facebook.com/people/Jim-Myers/100001512942781 Jim Myers

      Replying to Richard Eastridge –

      YA GOTTA LOVE THIS!

      SO MANY GUT-SPLITTING LAUGHS FROM ONE LITTLE POST!!

      Keep up the good work. I don’t get enough humor in my daily dose.

    • Cynic17

      Wow, Dick, you really don’t have a clue do you? If you are trying to be humorous in your abject stupidity, congratulations. You’ve nailed it.

      If there was a single thing in your post that you actually believe, please, please tell us you do not now and never will have any children. The gene pool thanks you.

  • http://www.facebook.com/dominick.vila.1 Dominick Vila

    The recent tax rate changes, MEDICARE and DoD spending reductions, and lower unemployment will reduce our annual budget deficits, reduce borrowing and, by default, will stabilize the national debt. The GOP is well aware of what is going on, that is why they are doing everything they can to obstruct the advancement of policies designed to stimulate the economy and lower unemployment. The most remarkable part of this achievement is that the Obama administration managed to do this in spite of the obstructionism they have faced in the House. Imagine where we would have been by now had the infrastructure investment proposal had passed.

  • montanabill

    Stabilized at 73% of GDP? ‘we are not spending enough’? Our only spending problem is ‘Medicare and Medicaid’? Tax increases on the top 1 % ‘put a serious dent in the short term debt expectations’?

    This article is trying to make the absurd seem like progress! The 73% number excludes debt held in government accounts, which when added, makes the number 105%! The highest since WW II and all projections show it going higher.

    We have overspent $5T in 4 years. What number is ‘enough’? Government cannot take money out of the economy in taxes and put a portion of it back as ‘investments’ and grow the economy. No way, no how.

    Add welfare, SSI, SSDI and Obamacare to our ‘spending problems’. I would have added defense, but that is about to take care of itself.

    Tax increases put a ding in short term debt (key word) expectations. But the long term expectations are still on a very steep path. They also are resulting in an ever worse economy. Under the best, I mean very best, estimates, our national debt will still grow to $18T-20T by 2016. We are doing great by our kids and grandkids.

  • http://www.facebook.com/debbie.kieselryan1 Debbie Kiesel-Ryan

    The more they blame the President, the more the blame is on them!!! The GOP knows everything is stabilizing now, so they have to try to make the President look bad any way they can, they just think the rest of us are as stupid as they are!!!!!!! HAHAHAHAHAHAHA LMAO!!!!!!!!!

    • joeham1

      83% of the country knows we have a spending problem. The president WILL tell us in his state of the union that we don’t have a spending problem. What do you think?

      I realize it’s popular to beat up and blame the GOP for everything. The President, the dems and the repubs think were all stupid. They love when the subject is just blame and hate!

      If we keep spending were finished! If we cut to much we hurt the economy. Our problems are both parties fault. If you study the bills the repubs and Clinton passed and the same bills Bush went along with, you will see that the blame goes to all of them.

      If you think everything is stabilizing now with over a trillion a year in deficit spending you have been fooled!

  • http://profile.yahoo.com/AO5XGV65KYB5J75FJVYGKPHZOU L. Roy

    Reagan’s Party was always nasty, men spirited and downrigfght selfish. They believed that economic growth only belonged to the wealthy and were so generous in their explanations — ripping Mondale yard signs up in my yard, ripping Mondale bumper stickers off my car and making threatening phone calls in the middle of the night.

    None of this garbage surprises me in the least.

  • charleo1

    What we need to do right now is grow the economy. Any drastic cuts, at this time will produce larger deficits, by costing jobs. Now, that’s not what Eric Cantor says, or John Boehner, and
    Mitch McConnell, say. But, it’s what economist are saying. When I mentioned this the other day,
    a fellow said, well, them economists will say anything for money. And I thought, and Eric Cantor
    won’t? I mean come on! The economy is not political. But, it’s been made almost totally political.
    Example: Greece has a lot of debt. And an economy about the size of Cleveland, Ohio. But if we
    just listen to the politics from the Right, one would think we’re a millimeter, or within a hair’s
    breadth of following Greece right down the drain. Which is ridiculous. But, if it’s what they
    believe, and many do. Well, I don’t blame them for being panicked. I blame the politicians for
    misinforming them. And I find the Republican’s narrative of how we must adopt this strict
    austerity, very suspect. Since the first I heard of it, was just after the banks were bailed out, and
    Barack Obama was voted in. And if experts even matter anymore, they say there is no doubt,
    if not for the political fights that have had the effect of injecting uncertainty into the mix, we
    would have been well on our way to leading the world out of this mess two years ago. So, I
    guess we had better be glad we’re a big, diverse, extremely blessed Country, that can afford to
    hold up our own economic progress, while we banter back, and forth. Discuss the finer points
    of the proper role of government. States Rights, versus the People’s Rights to know. And on, and on. Right? But we really should consider looking at the economy like we look at our jobs. Nothing personal, just business. And look at office politics, like well, politics.

    • TZToronto

      It’s like politicians are playing hot potato, tossing it back and forth, hoping it burns the other guy’s hands off. If the only people the game affected were the participants, that would be OK. The rest of us might actually enjoy watching the game. The problem is that it’s not a hot potato–it’s a nuclear bomb, and it could go off at any time, destroying everything, including us spectators. All we seem to be able to do is watch and hope the potato cools off enough that it won’t destroy us all. I’m sick of the self-serving stupidity. How about thinking of the country for a change rather than pushing for your twisted idea of what the country should be? Start working for the 330 million rather than the 6.6 million of your best friends, GOP-ers.

      • charleo1

        Unfortunately for the people, there’s just not the kind of money to be made
        governing for the people, as there is governing for the fat cats on Wall Street.
        Since The Supreme Court found in it’s infinite wisdom, money equals speech,
        the monied elite were handed a megaphone, and the rest of us had our mouths
        taped shut.

    • joeham1

      Charle, You have totally made sense! That’s the firt post of yours I’ve read that was mostly accurate.

      83% of Americans believe we have a huge spending problem. Your right when you say Greece is so much smaller then us. However, if the world loses faith in the dollar and if we don’t slow spending, our fall will affect the world!

      We can cut the deficit without hurting people or the economy. The right wants major cuts and the left says cuts will hurt people. BOTH ARE WRONG!

      Consolidate departments, cut waste FINALLY! Fix the healthcare bill with a bipartison approach! Stop domonizing and blaming, and work together! Tort reform and increased insurance comepetition will lower healthcare costs and therefore the deficit the healthcare bill will cause!

      The president announced in the last few days and he will again in his state of the union that we don’t have a spending problem. It’s time for all Americans to say YES WE DO!!

      • charleo1

        Well Joe, I’m glad we’re seeing eye to eye on a point or two. And I hate to fuss.
        However, I believe if the American People were ask, they would agree we have
        a deficit problem. But, I also believe, if they are ask, what is the most urgent
        problem, that we must address right away, they would say jobs. We need jobs.
        We need to retrain a lot of our workforce. And rebuild what they call infrastructure.
        I call it the guts, the nuts, and bolts that underpin the larger economy. My area
        in Miami, Fl. is typical of much of the Country. A water treatment and sewer
        system, built 80 years ago by WPA, is falling apart. Requiring thousands of man
        hours per year to dig up, and replace a section of pipe, only to have it rupture again,
        a few hundred feet down from the section they just fixed. Water management says
        they must have, 2.1 billion over the next 5 years, or we risk suffering a major
        interruption of service because of a contaminated water supply. Or, Congress had
        an opportunity before adjourning in Dec. to harden our electric grid aganist a
        cyber attack. Security experts say it’s just a matter of time until our already antiquated system is vulnerable. So, simply adhering to an ideology that will
        always say no. That always says no to government investment, not because
        it’s never worked, it has. And certainly not because these investments are not
        needed. Many were needed 20 years ago. But refusing to make important
        investments, because they are working under the fallacious logic that a wider
        global economy is on the brink of losing confidence in the ability of The United
        States to repay it’s debt. And that is simply not true. And we don’t even have to
        guess about this. The treasury note, even after the downgrade, is viewed as the
        safest place in the world to park one’s money. Whether you’re an American saving for college for the kids, or a billionaire in Russia, that just wants to keep his powder dry, until the world economy gets a little better. For security, the U.S.
        T-Bill cannot be beat. And it’s because of this reputation, and the interest rate
        that comes with it, we should spend. Invest at home, where we sorely need it.
        And, at the same time, give the 8 million or so, desperate for work, a job.

        • plc97477

          and doing the bandage approach to fixing the infrastructure is going to end up costing much more than buckling down and getting it done.

          • charleo1

            Exactly correct. We have a sewer pipe break it seems every week.
            It pours this you know what, into businesses, homes, the kids
            getting out of school, wade, and play in it. Or it happens oceanside
            and feces flows into the ocean, and onto the beaches, which they
            close. And this costs waterfront businesses, and stinks to high
            heaven.

        • joeham1

          The poll just done has 83% of americans say we have a spending problem. This year the deficit will be approximately 1.4 trillion. This crazy ass governement can find 30-40 billion in that 1.4 trillion. To spend more then we are now regardless of what we need would be foolish. between the 2.4 trillion revenue and the 1.4 trillion in deficit spending surely they can hack off a piece for infrastructure! The first 800 billion stimulas should have gone to that. Unfortunately it got pissed away for a bunch of crap not nearly as important as infrastucture!

          The jobs thing should have been a priority for the last 4 years. The American jobs act wasn’t even a jobs program. It was another stimulas!

          The Government is out of control and all the adults have left it to the kids!

          • charleo1

            One third of the stimulus package consisted of tax cuts.
            Payroll tax was cut. Tax cuts for businesses purchasing equipment.
            Tax cuts for energy efficient air conditioners, and water heaters.
            Allowing property taxes to be deducted from gross income.
            Tax depreciation on business equipment was accelerated .
            Tax credits were alloted to businesses who hired new employees.
            Another third was distributed to the States, who’s real estate
            dependent budgets were depleted with the housing collapse.
            The funds kept more state workers from being laid off. License, bureaus, building inspection, state police, state parks, nurses
            at state hospitals, community hospitals that treat the indigent
            received funds, fish, and game, and so on. Just as millions were
            laid off, millions now depended on Medicaid. Money was allocated
            to the States to help pay for the newly uninsured’s medical costs.
            The final third was reserved for infrastructure projects. And this
            actually did result in a lot of the Congress people seeing a chance
            to bring home some bacon to their home districts. And all of the
            silliness that was used to bash the entire package happened here.
            Art gallery renovations, and money to study the mating habits of
            guppies, or some such, fell into some very connected hands. So,
            it wasn’t just this wonderful panacea, but neither was it unnecessary. And, if one looks at the numbers throughout the years 0f 2009/2010, the job losses which had been as high as
            800,000 in the first quarter of ’09, did begin to come down
            mid year. And some confidence did return to the markets.
            And that absolutely must happen, when 75/80% of an economy
            like ours, depends on people spending their money. At least,
            that’s my general, recollections.

      • http://profile.yahoo.com/UHE4MJP5FHMFIEAOGEQHETUGDQ Rvn_sgt6768

        We (the people) do NOT have a spending problem, Congress does.All spending must originate in the HOUSE, Boehner’s domain. We (the people) get confused with what a government needs to spend and what politicians do spend to guarantee their reelection which is all they are interested in anyway. Since its inception the USA has been governed by the rich making laws that benefit themselves at the expense of everyone else. Magna Carter be damned. Instead of one king we now have many (multi-billionaire) kings who want to be taken care of first over the needs of the many. The worst problem is with all the wanna-be’s who want an easy access to these paths to become king like themselves. They control our decision makers (also wanna-be’s) who like to be friends of the rich and powerful. Everyone else gets left in their dust in that climb to the top they cherish. They rationalize that we can not afford to help those who really need help because they have to help those with so much get even more. Pathetic.

        • joeham1

          No one rationalizes not helping people who need it. They rationalize not helping lazy people or people that choose not to work. An example is drug testing people who get money from the government. The left is against it! Why not? If you drug test for a job you should for free money!

          The evil rich aren’t usually that evil. It’s the our government officials who are bought by them that are evil. The unions, Hollywood and some big business own the left and big business own the right.

          We the people have a spending problem despite what the President tries to feed us! I realize blaming the right for everything is what Obama wants us to believe but his spending that he called un american a few years ago is out of control!

  • ObozoMustGo

    The debt is stabilized?????

    BWWAAAAAAAAAAAAAAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!
    BWWAAAAAAAAAAAAAAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!
    BWWAAAAAAAAAAAAAAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!

    ROFLMAO!

    BWWAAAAAAAAAAAAAAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!
    BWWAAAAAAAAAAAAAAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!
    BWWAAAAAAAAAAAAAAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!

    Ahhhhhhh…. you’re killing me, Sattler. You gotta stop being such a useful idiot propagandist for the Obozo regime. You’re losing all credibility.

    Simple math. When annual deficits exceed $1.5 TRILLION on average, that means the debt is going up. Do you understand this? You probably do, but any shred of journalistic integrity that you may have had must be set aside for the cause of the party, right? Correct. Looks like yellow journalism is the defacto standard with you people anymore.

    You hardcore leftist freaks can keep your heads in the sand, but the rest of us need to address our fiscal problems like adults.

    Have a nice day!

    Sen. Barack Obama’s Floor Speech, March 20, 2006 — “The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.” Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”

    • http://www.facebook.com/edayres Edward Ayres

      I know when I want to hear authoritative statements on economic matters, people who call themselves names like “ObozoMustGo” is the first place I look.

  • Michael

    I have tried to read a lot of the comments that have been posted on this subject – and must say I see much that I agree with.

    I am a disabled male, with multiple chronic health issues. I receive SS disability and Medicaid. But I would like to point to those who may be forming opinions based on false assumptions.

    First, my fixed income is not great at all. I pay about a hundred a month for my Medicare out of this small income. And Medicare is not that great, to begin with. When you factor in the various deductibles and then the twenty percent co-pay’s, it leaves much to be desired. And Medicaid will only pay after Medicare has paid all they are going to pay.

    Next. SS does not contribute a dime to the deficit, so it should not even be part of the deficit reduction ideas. Congress owes SS over 2 trillion dollars, that it has “borrowed” from the SS trust fund over the years.

    Can this program benefit from some reforms? Sure. But we don’t need to butcher it in order to extend it’s useful life. Gradually raise the retirement age, to bring it in line with current life expectancies. Take the cap off of the payroll tax. Make everyone pay into the program, irregardless of how much they make.

    Medicare. Open up the prescription drug program to competition, which would save billions of dollars every year. Change the system from a fee-for-service basis to one that is based on outcomes. Offer greater incentives to people to improve their lifestyles to become more healthy. Increase access to more preventative things, like mammograms, blood pressure monitoring, maybe access to health clubs to encourage healthy exercise. Root out waste and fraud on the part of hospitals and physicians who abuse the system.

    Medicaid. Again, root out abuses in the system. Deal with the waste and fraud in the program. But do not shrink the program unnecessarily.

    A lot of our deficit problems will self-correct as the economy improves. The more people who can return to jobs that provide a liveable income, the greater the tax revenues that will pour into the government coffers. As this happens, the number of people needing food stamp assistance will decrease.

    I am for the sequester. These forced cuts will possibly open our politician’s eyes to what they need to do.

  • http://profile.yahoo.com/JQSXEIQNDPVMLG7X5TFGPT6YRA empaty1

    This president understands numbers. People are being petty talking about “the debt” when its not really about the debt. Its really about bullying someone into thinking GOP knows what they and they only are talking about. Lets be real – balancing a budget in this type of country with issues that are humongous everyday. Unreal. Nobody ever told Mr. Bush to stop spending money – I remember thinking “he is spending sooo much money and nobody says anything.” So now those guys want to cut the dickens out of the little people for something they did not do. Why don’t they live in somebody’s shoes who gets a couple hundred dollars a month, rather than their 5 figures. I see ropes dangling now in their face. Couldn’t take it – but want poor people to keep the bootstraps going. Unreal. Where is Jesus?

  • lana ward

    In Feb., 2009 , Omuslim said the $787 billion stimulus would lift 2 million people out of poverty. The 2011 cencus says 2.6 million more people are in poverty

  • pbrower2a

    We need to cut out the wars for profit and the business subsidies, take off the cap on earned income for Social Security and Medicare taxes, and undo the Dubya-era tax cuts.

  • franklovesfl1

    And where are the spending cuts the Dems have promised?

    “Oh, forget about those.. Just raise taxes and we won’t need them!’

    Yeah — my mom warned me about hucksters like Obama.

  • Keninmo

    “Stabilized”??? It raises indefinitely — that’s like saying your credit card debt “stabilizes” as only 2/3 of your entire income for infinity ASSUMING your income continually goes up by enough to keep up with your out-of-control spending. The writer of this article is a complete moron.

  • BSH

    What a crazy, crack-pot “article.” IF we make another $1.5 TRILLION in cuts (or massive tax hikes), the debt will stabilize, IF…. the article does not say what assumption it makes for GDP growth, a key fact. Without knowing the GDP assumption, the article is totally worthless propaganda. The fact that the article assumes further tax increases and spending cuts would indicate that it may not be honest about the GDP assumption, either. So I’m going to consider this to be an ideological website, not a news site, and its purpose is propaganda, not information. That’s what the available evidence on this page would seem to indicate.

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