How to Balance the National Budget
Now, I’m no economist and I may be simplifying this a tad, but I would think the same basic principles of balancing a personal budget would apply. Live within your means and stick to what you said you were going to spend. If you go over in one area, cut it from another. Simple, right? Apparently not.
The problem I have with where we are as a nation is that we continue to borrow from other countries - like China. I just don’t like the idea of us being indebted to a country sitting on nuclear warheads with no intention of getting rid of them, at least not peacefully. That thought disturbs me. So, I’m extremely interested in what our three presidential candidates plan to do with the budget should they be elected.
I’m probably going to start a firestorm here, but oh well. McCain has got to be the most ridiculous excuse of a presidential candidate I’ve ever seen! First he admits that he doesn’t really know how to work a computer and then he admits he doesn’t really understand economics. When asked how he intends to balance the budget he can’t really answer the question with any specifics, other than to say that he plans to repeat what Reagan did in the 80s. I was only a toddler in the 80s, but didn’t the deficit triple under Reagan’s administration? Tax cuts and increased military spending were a large part of that, which Bush has been doing as well and we’ve seen how that’s turned out. I’m thinking Reagonomics should be left to its era and not rehashed!
When the budget question was posed to Clinton, she did a lot of Bush-bashing, which isn’t without warrant, but I tire of her personal attacks. I want to know how she intends to fix the budget. I want to know what her plans for budgeting are. She says that “it will take hard work and tough choices, but I’m confident that we can put America back on a path to balanced budgets.” Ok, what the hell does that mean? Is she going to increase taxes? Is she going to cut entitlement and defense spending? How does she plan to balance this budget? If anyone knows, please tell me because I haven’t been able to decipher it through her mud-slinging.
Obama is the only candidate to give a straightforward answer on his plan to balance the budget. He says that the first step is to “restore pay-as-you-go” spending rules so that we do not dig ourselves further into debt. He intends to pay for the ventures that he’s proposed by cutting spending in other areas or finding new revenue sources (here’s a thought: instead of politicians lining their own pockets with all that lobbying going on, why not put that money to good use somewhere else?). Unfortunately, finding revenue elsewhere usually doesn’t bode well for us in the middle. But, Obama does touch on that concern by saying that he will protect the tax-cuts for the middle class and take away the unnecessary tax-cuts for oil and gas companies and the wealthiest Americans. Furthermore, he plans to prioritize his spending as he’s aware he may not have enough funds to do everything right away. If he’s telling the truth, that may be a good start. If he doesn’t win, whoever does would do well to consider his ideas.
I’m not sure which way I’m going to go come election time, but I do know it’s not going to be McCain. But, on the issue of balancing the budget, I side with Obama. His plan of action makes perfect financial sense. Like I said, I’m not an economist, but I am a financial advisor to my clients and that’s the advice I give. If you want a balanced budget, you have to prioritize your spending and watch it. If you go over in one area, cut another to keep it balanced. It’s not hard to figure that out, but there has been a lack of control over the budget in recent administrations.
What are your thoughts?
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May 8th, 2008 at 2:22 pm
Outlaw tax money profiteering.
http://www.warprofiteering.net/
May 9th, 2008 at 7:56 am
“When the budget question was posed to Clinton, she did a lot of Bush-bashing, which isn’t without warrant, but I tire of her personal attacks. I want to know how she intends to fix the budget. I want to know what her plans for budgeting are. She says that “it will take hard work and tough choices, but I’m confident that we can put America back on a path to balanced budgets.” Ok, what the hell does that mean?”
LOL!! that is too funny!
Kristy, I completely agree, Clinton needs to quanitfy her answers. I identify with Obama because he is (ironically) as sick and fed up with politics as i am. He doesn’t have all the answers, because balancing the budget will take more resources than he has at his disposal, but I like his attitude. Using personal finance priciples to balance the budget is a great idea because it simplifies a very complex and somewhat convuluted topic.
All the money that political action committies give to the politicians is somewhat disturbing. But money is all they understand; if enough small people unite, there will be enough money to influence congress. The problem is everyone is sick of politics; I know I am, and that is why I have decided to be more mindful the political world more recently. Oil prices will never go down unfortunately; I think we need more research for alternative fuels and power sources. Private funding has increased for those needs, maybe congress will start to address this soon. At least the new government mandate of 35mpg by 2015 is a step in the right direction.
As for McCain, I agree with you, I see no reason to entrust our national interests with him. Unless he starts contributing some substance (he could be waiting for the democratic nominee to be appointed) I see no reason to vote for him. Hopefully in the general election there won’t be as many stupid questions about Obama’s pastor, his former college buddies, or whether he is a White Sox or Cubs fan (ok i made up the last one, but you get the idea…Go White Sox!)
May 9th, 2008 at 9:49 am
“or whether he is a White Sox or Cubs fan (ok i made up the last one, but you get the idea…Go White Sox!)”
LOL, Jaime.
I agree with everything you’ve said. At one point in my life I thought I might enter the world of politics and I’m very glad that I didn’t. It is a world I find disturbing on many levels. What I’m most concerned with though is that these candidates are making promises, but do they really intend to keep them? That’s always the issue, every election. These candidates have to go with what will get them re-elected by the constituents providing the money to campaign. Unfortunately, what’s good for those select few usually falls short of what’s good for the people. Thus, I’ve become very disenchanted with politics over the years.
With regard to McCain, he’s a bit of a fossil which wouldn’t be so bad if he could at least relate to the people. But, the fact that he can’t use a computer and the fact that he doesn’t understand economics - at least on some basic level - makes me wonder how he could possibly handle a nation that needs fixing. Some people like McCain. I think he’s kind of an idiot and having had one in office for 8 years, I think we’re due a change.
It does seems like such an easy thing to use personal finance principles to balance the budget but the problem is, there is so much pressure from lobbyists and political action committees to do what they want done. I think that if someone wants to run for president, the best way to keep them honest and sincere to the people is to make them use their own money to campaign and not allow them to “raise” money. The only money they would be allowed to have is from the people who elect to donate the $3 every year on their tax returns. Without that added pressure from those handing over money, I think we could get down to the nitty gritty and fix things here. And since I’m on a soap box with this issue anyway, I want to see a candidate talk about fixing home before they talk about increased funding to Iraq. I’m sorry, but it isn’t our job to be the world police. Let them handle their own strife, bring our men and women back home, and let’s clean up our own country first!
Ok, stepping off the soap box now! :)
May 10th, 2008 at 10:22 am
I think another good indicator is their own personal finances. The Obamas just finished paying off their school loans within the past few years, and only started making lots of money after publishing books. There’s a Slate article about it: http://www.slate.com/id/2190879/. It goes into much more detail than I could here.