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Name:
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copperline
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Subject:
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Will we really face up to cutting entitlements?
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Date:
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1/7/2013 7:01:40 PM
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its time to start talking about where we will be cutting
entitlement programs in order to complete the work that needs to be done. The tax program is mostly in place, although
the tax code could still use a major overall to simplify and close unintended
loopholes. i’m all for that.
But the big fish remains in the arena of cuts to govt
expenditures in order to balance the Federal Budget, and address the deficit we
have gotten ourselves into.
But where should we cut?
Make a list of the entitlement
programs, of all kinds, and look closely at what cutting them means. First of all, “entitlement spending
programs” doesn’t just mean food stamps, Medicaid and aid to dependent
children. it also includes Social Security,
pensions for federal workers, disabled vets & retired military. it includes money for education from
preschool to college & technical training.
These aren’t just anti-poverty
programs, it means looking at the flow of money to Baby Boomers who have
retired or will retire with programs they thought were secure & above
reproach. But if we believe the federal
govt has generally overcommitted to expenses and has too little revenue to
cover its obligations, then all these have to be included as part of the problem.
These will be painful choices, because the discomfort of
making them is going to have to be spread far & wide. it will not be enough to divert attention to one
area of a program’s waste or complaining that a single group of people
(immigrants, for instance) are causing the problem. At best these views will only offer up puny
financial savings. At worst, they deal
brutally with vulnerable groups of people.
My thinking is that
the cuts will have to affect everyone, but we should try to protect truly
vulnerable people & critical areas as much as possible. Cutting back on Medicaid expenses needs to
be done carefully with regard to protecting the health of many poor people,
cutting education money needs to be evaluated in light of the country’s need to
produce knowledgeable workers and the free
public education necessary for the
county’s future workers. Merely
talking about reducing retirement benefits for ex-military will certainly cause
a furor because it seems like a betrayal of patriotic values.
Large scale-backs in Federal dollars are going to have to be
tolerated by the Middle Class.
When you look at the
full scope of federal spending on entitlement programs, you notice that the
poor are not the main recipient of tax dollars.
The middle class and upper class
are big beneficiaries of govt spending as well.
96% of Americans benefit from some sort of government social program or
another. According to the Center for
Budget & Policy Priorities, in 2010 20%
of entitlement spending went to the top 10% of households, 58% went to middle
income households, and 32% went to the
bottom 20%.
“if you want the government to give you something, vote for
a Democrat. if you don’t want to pay
for it, vote Republican”. This may
explain how we got ourselves into a pattern of deficit spending, but not how we
will get ourselves to the other side of this crisis. i think we should be ready to make cuts in
entitlement spending, but remain a bit pessimistic that the US public is really
willing to accept what this will mean. i think we will find it surprising, and then
resist any changes that have a direct and personal impact on us as individuals. When
real cuts are made, they will have impact beyond what’s expected because the
effects of government spending are so integrated into the fabric of daily
life. They have been contributing to
what we all considered to be normal.
The price of milk is a good example.
Without the recent federal farm bill that provided price supports, the
cost of milk would have doubled overnight.
Not too many of us know that or appreciate the positive role that tax
dollars were playing in our monthly grocery budget.
Whether conservative or liberal, it remains to be seen if we
have the stomach to make the real cuts necessary to reign in the deficit. We all talk about our willingness to accept
changes in our life style until the conversation crosses the line from theoretical
to concrete. My opinion is that the
American public isn’t aware of the intricacies of our national social policies
and will be unhappily surprised by what is revealed when they are cut. Our usual position is that spending
reductions need to be made in areas that will not affect us personally, and we
are best at focusing blame for our financial mismanagement elsewhere.
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