"We are submitting a budget that includes a surplus in 2012, which is achievable if we keep our economy growing," Treasury Secretary Henry Paulson told the House Ways and Means Committee.
He's talking about annual deficits, and claiming that by 2012 we'll have a surplus. Of course, his budget doesn't take into account the costs of our wars, but never mind that. He's talking about eliminating the deficit we have today (somewhere around $260 billion), and ignoring the debt we've already piled up -- $8.7 trillion. That's like bragging that you paid for most of last month's credit card purchases, but ignoring what's been accumulating from not paying in full for years.
This is how David Walker, Comptroller General of the United States -- not one of Bush's liars and stooges -- describes it:
"It is not the short-term deficit that threatens us; it is the long-term fiscal outlook. We are on an imprudent and unsustainable path. Continuing on our current fiscal path would gradually erode, if not suddenly damage, our economy, our standard of living, and ultimately even our domestic tranquility and our national security ... While restraint in the near term and efforts to balance the budget over the next 5 years can be positive, it is important that actions to achieve this also address the long-term fiscal outlook. The real problem is not the near-term deficit—it is the long-term fiscal outlook. It is important to look beyond five or even 10 years from now."
But you're not going to hear about this from our elected leaders. No one in a position to do something about this has the political courage to even bring it up.
Which is unfortunate, especially if you still have a long life ahead of you. The following is from a presentation the Comptroller General has been giving around the country called "The Fiscal Wake-up Tour."
The Status Quo is Not an Option
Faster Economic Growth Can Help, but It Cannot Solve the Problem
• Closing the current long-term fiscal gap (meaning the total debt, not one year's deficit) based on reasonable assumptions would require real average annual economic growth in the DOUBLE DIGIT range every year for the next 75 years.
• During the 1990s, the economy grew at an average 3.2 percent per year.
• As a result, we cannot simply grow our way out of this problem. Tough choices will be required.
• During the 1990s, the economy grew at an average 3.2 percent per year.
• As a result, we cannot simply grow our way out of this problem. Tough choices will be required.
And these are the choices he describes:
• Cutting total federal spending by 60 percent
or
• Raising federal taxes to two times today's level (Not likely, considering how Bush and his party have succeeded in making us think that never-ending tax cuts is our God-given right as Americans.)
or
• Raising federal taxes to two times today's level (Not likely, considering how Bush and his party have succeeded in making us think that never-ending tax cuts is our God-given right as Americans.)
We can run from these numbers, but we can't hide. Just like we can't hide from the fact that last year we paid about $406 billion just on interest payments to the holders of the national debt. (Thanks, China!) Compare that to NASA's budget at $15 billion, Dept. of Transportation at $56 billion, and Dept. of Education at $61 billion. That's like a whole 'nother defense budget. And our defense budget is already higher than the rest of the world's -- combined.
Better yet, compare that to the way any sane person or family or business budgets money. And then make an appointment for a vasectomy or to have your tubes tied. Because you don't want to inflict this disaster on young people.
