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Old 02-03-2017, 06:31 PM
 
3,437 posts, read 3,250,992 times
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My plan for balancing the budget and paying off the National Debt:

1. Raise the education standards in K-12 and all the way through graduate school. Remove "diversity", "social justice", and other such nonsense from curricula. Do the work, or fail out. Educate a generation of sharp, motivated people who will work hard and solve problems.

2. Reduce regulations on business to the bare minimum. Do whatever it takes to reduce the paperwork burden on business managers. Make it much less time consuming for a small business to comply with local, state, and federal regs.

3. Reduce business taxation to the lowest in the world. Remove most excise taxes on businesses.

4. Eliminate capital gains taxation.

5. Reform health insurance using market principles. Provide a safety net for those at the bottom: free or low-fee clinics. Provide incentives for middle class: tax deductions for plans, interstate competition, remove elective procedures from mandatory plans e.g. sexual reassignment surgery. Increase the incentives for healthy lifestyle and the penalties for risky lifestyle (obesity).

6. pass an Amendment to force the federal government to use zero based budgeting and to balance its books every year. In other words, rather than passing spending bills and then figuring out how to borrow enough to cover it in the next fiscal year, make them budget based on revenue received. If revenue goes down, tough. Cut budgets, cut manpower, make it work.

Of course, this will never happen without some kind of dictatorship. Americans are not going to tighten our belts and do what's necessary. We'll just keep muddling through, passing the debt burden on to future generations to deal with.

But maybe if we can implement a fraction of the above, we can start to at least slow the growth of the debt.

If I were king, I'd immediately chop $2 trillion off the fed budget, and sink $1 trillion a year into paying down the Debt. But that would put a heck of a lot of people out on the streets.

We need to ask ourselves -- are we truly a rich country? Or are we just a deadbeat has-been country, living on a credit card, barely able to make the payments from month to month?
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Old 02-03-2017, 07:53 PM
 
8,301 posts, read 3,466,952 times
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Quote:
Originally Posted by blisterpeanuts View Post
We need to ask ourselves -- are we truly a rich country? Or are we just a deadbeat has-been country, living on a credit card, barely able to make the payments from month to month?
We are very rich because of our natural resources, people, productivity, stability, safety, rule of law, and understand the need and value of a proper currency. Our debt is our money. By accounting federal debt = private sector assets. Our money is what fuels and rewards our productive process. Productivity is the key.
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Old 02-03-2017, 08:10 PM
 
Location: Southern Colorado
2,946 posts, read 1,440,562 times
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How are we going to pay off the debt with the same crew that got us into this debt? Not going to happen.

Eventually we will re-organize and the billionaires will own our public lands. Or....things get nasty and billionaires don't do quite as well.

Sure are interesting times indeed.

Right now "they" are trying to stoke a war with Iran. What could possibly go wrong?
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Old 02-03-2017, 09:17 PM
 
Location: Silicon Valley
2,774 posts, read 1,223,004 times
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Quote:
Originally Posted by krug View Post
First off, I am not an economist. And I've looked for similar posts to avoid redundancy.

The national debt of 20 trillion dollars, with yearly deficits. How do we pay this off, if ever.

I've read about just "erasing" the debt because most is owed to us. Increased taxes, massive inflation via printing money to pay off debt. How do we pay the debt. Or...does it just go on forever.
For this question, it's good to understand where our money comes from. Take a look at a dollar bill. You'll see on it the words Federal Reserve Note. This is the physicial form of a dollar (whatever that is) to be paid to the Federal Reserve Bank. The total of all bills and currency in circulation is called the M0 money supply.


According to tradingeconomics.com, 3,531,576,000,000 existed at the end of December.
48,362,000,000 existed in 1961 for the record low.

So, if the government seized every monetary unit out there, we would still be well short of being able to pay off the debt. From there you start to look at money in banking. Most people do not carry all of their money around with them, but they put them in a checking account of savings account, called M1. Herein lies the problem with that money. While the money is yours, the bank also has the ability to create a loan from your deposits. If they make a loan to another company or bank, that company will also think that money is theirs. In this sense, it is like money multiplies once it is in a banking system.

If you are the bank, and I deposit $100 with you, and you in turn loan the money to your friend, they have an IOU to you, but they also have money in their account, if they keep the money in your bank, you may loan it out again to another friend, who will also think the money is theirs. If all 3 of us look to pull out our money at the same time, you'll be in trouble. You'll have to borrow money to cover from another bank.

In a sense, if the US attempted to pay off all it's debt, that's what would be happening...only there's much less money that there is debt. When people talk of erasing the debt, they're talking about the government's ability to define what a dollar is. In theory, it could mint a trillion dollar coin, give it to the Federal Bank and say, this is our debt repayment. However, it would also immediately destroy the value of the dollar for being worth anything.
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Old 02-03-2017, 09:39 PM
 
38 posts, read 20,799 times
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We need to limit next year's government spending to this year's tax revenues, minus 10% towards paying down debt/building a wealth fund.

We can do this by changing the budgeting process, cutting waste and reducing or eliminating useless programs and by encouraging US investors and companies to invest here and create jobs and tax revenues.

If higher taxes are the answer, why not make the tax rate 90% with no deductions?
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Old 02-03-2017, 10:07 PM
 
17,644 posts, read 12,245,599 times
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Quote:
Originally Posted by beavischipolte View Post
We need to limit next year's government spending to this year's tax revenues, minus 10% towards paying down debt/building a wealth fund.

We can do this by changing the budgeting process, cutting waste and reducing or eliminating useless programs and by encouraging US investors and companies to invest here and create jobs and tax revenues.

If higher taxes are the answer, why not make the tax rate 90% with no deductions?
A wealth fund? Lol this isn't household finances
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Old 02-04-2017, 01:38 AM
 
Location: Eugene, Oregon
7,133 posts, read 2,225,438 times
Reputation: 9721
Quote:
Originally Posted by krug View Post
First off, I am not an economist. And I've looked for similar posts to avoid redundancy.

The national debt of 20 trillion dollars, with yearly deficits. How do we pay this off, if ever.

I've read about just "erasing" the debt because most is owed to us. Increased taxes, massive inflation via printing money to pay off debt. How do we pay the debt. Or...does it just go on forever.
It's normal for most countries to maintain a deficit.
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Old 02-04-2017, 08:17 AM
 
1,710 posts, read 1,714,418 times
Reputation: 4010
A national sales tax that is dedicated STRICTLY to debt pay off. No raiding for anything.
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Old 02-04-2017, 10:16 AM
 
4,229 posts, read 1,911,784 times
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What percentage of those who hold Treasury and agency debt actually want their money back? Instead of all these contorted schemes, why don't we just wait for the notes to mature and see what the note-holder wants to do at the time?
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Old 02-04-2017, 10:17 AM
 
Location: Southern Colorado
2,946 posts, read 1,440,562 times
Reputation: 3948
You figure the government will quit being governmental? Government doesn't create anything. Government raids.

Quote:
Originally Posted by jasperhobbs View Post
A national sales tax that is dedicated STRICTLY to debt pay off. No raiding for anything.
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