Ideas for Reducing the National Debt
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Last week, I wrote about the need to reduce the United States' federal deficit and the issue brought in a lot of great responses from our readers. I want to thank everyone who wrote in for their insightful comments. Many people thought of great solutions on how the U.S. government can reduce the national debt and several of the comments are printed below. If you haven't shared your opinion yet, please do so by sending us an email or commenting on our blog, http://www.iconoclast-investor.com. Enjoy!
Suggestions for reducing the National Debt
1. Take politics out of it! No more spending of borrowed money by Congress.
2. Balance the current budget by freezing all unmade expenditures immediately. No one can be paid, Congress, the Executive or Judicial branches of government, or Contractors, for a minimum of three months until the budget is balanced.
3. Reduce the size of the government bureaucracy by 50% and give every government organization six months to comply. The Department of Defense gets a special 90% reduction in its costs and requires a future referendum in order to raise its expenditures by $1 or more. Within six months, 50% of all other non-constitutionally mandated government functions, will be closed. Within 12 months, all governmental functions not mandated by the Constitution, will be closed and no further funding will be allowed. If citizens require, these services can be provided by NGOs.
4. Eliminate the Federal Reserve and replace it with a non-privatized independent organization.
5. Remove the Federal government as a third party to all private and other party dealings.
Elyse, here are some suggestions for generating additional tax revenue:
Let all of the Bush tax cuts expire; we had a surplus before he took office (uggh)
Tax all oil at the barrel (not the gallon) level when it is first produced or imported; since most of our oil is imported, this also helps the trade imbalance
Tax all toys when they are first produced or imported; since most of our toys are imported, this also helps the trade imbalance.
We should be able to come up with other ideas that get the job done (cars, consumer electronics, other products that are mostly imported).
I don't think we can balance the federal budget unless we also balance the trade budget. We are off-shoring way too many jobs and importing way too much stuff. So, reduce consumption of mostly-imports and increase tax revenue.
Other subscribers will probably have great ideas to reduce spending; I wish them luck, because they never seem to actually happen.
Redwood City, California
Cut the deficit by 1) pull out of the United Nations and kick out the no goods and rent out the building. 2) Pull out all the United States forces that are protecting other nations and bring them home to close our borders. 3) Cut government payroll in half. Half are not working anyway. 4) Do away with the give-away programs to foreign governments. 5) Discontinue the NASA funding and sell all the scrap to China. This would put us back in the black.
Let's cut foreign aid to a bare minimum, reduce all these subsidy programs, and take a hard look at the welfare program in the U.S. Too many able bodied people are on welfare.
How can we reduce the deficit:
1. Term limits without lifetime retirement benefits at our expense, even if you only serve one term.
2. A balanced budget law strictly enforced. If we don't have it, they can't spend it.
3. Strictly enforce immigration laws. What is it about the word illegal that they don't get?
4. Welfare reform like the three strikes you're out policy. It should never be a generational lifetime entitlement.
5. Tax breaks for the small businesses the provide jobs for 70% of our workers. Not more taxes and regulations that strangle innovation.
6. Stop funding the U.N. disproportionately more than the other members. Getting out altogether would be preferable.
7. Get out of the IMF and Kyoto treaties that will take us down a rocky road and ultimately hobble our ability to rebuild to new heights.
These suggestions would only be a start as I am sure others would have more to consider.
We have more weapons than the rest of the world combined by a wide margin, yet China could crush us as completely as if we unloaded every nuclear weapon in our arsenal by saying these seven words: "We will no longer buy your bonds."
The only thing this country needs is EMPLOYERS!!! Employees spend paychecks, fuel the economy, live good lives, and Heaven forbid, sometimes save a little bit. But these people cannot exist without EMPLOYERS. This administration is causing companies to down-size, lay off personnel, and just back off and hunker down until this blows over. Problem is, what's left after it does blow over?
Very concerned citizen,
A serious discussion of the national debt has to start with the fact that we can't afford to continue to waste untold billions on the military in the name of fighting terror. We should bring our troops home within a year and aim to cut $200 billion a year from the annual defense budget. Then we should consider a tax on gasoline that is targeted strictly for deficit reduction. This would help fiscally and might even lead to less dependence on foreign oil. We should also pass an amendment making it illegal to run deficits in times of peace and prosperity. Recessions should be our only excuse for deficits after a 5-year transition period.
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In case you didn't get a chance to read all the issues of Cabot Wealth Advisory this week and want to catch up on any investing and stock tips you might have missed, I have links below to each issue.
Cabot Wealth Advisory 8/31/09 - The Lesson of the Stanley Steamer
On Monday, Timothy Lutts wrote about the Stanley twins, makers of the Stanley Steamer automobiles, the first to ascend Mount Washington 110 years ago. Unfortunately, the Stanleys failed to adapt to new automotive technology and eventually the factory closed. Tim finished by discussing the stock of an automotive company that's poised to benefit from future industry adaptations. Featured stock: Maxwell Technologies (MXWL).
Cabot Wealth Advisory 9/3/09 - After 20 Years, This Investment is Ready to Rise
On Thursday, Michael Cintolo wrote about why he thinks the baseball and football card industries might be nearing a bottom. An investment in this area may or may not pay off in the future, but it will definitely bring you closer to your kids. Mike recommended a big "bull market" stock. Featured stock: Franklin Resources (BEN).
Until next time,
Editor of Cabot Wealth Advisory
Editor's Note: Earlier this week you heard from Editor Michael Cintolo, so if you're looking for more of his expert growth stock investing advice, you can find it in Cabot Top Ten Report. This weekly newsletter contains the hottest stocks in the market, those with the greatest momentum, handpicked by Mike. He provides a detailed technical and fundamental analysis with a specific buy range, so you know exactly what action to take. Cabot Top Ten Report routinely beats the market by finding strong leaders like these 2009 gainers: Freeport-McMoRan UP 38%; Shanda Interactive Entertainment UP 43%; Green Mountain Coffee Roasters UP 52%. Click the link below to discover the strongest stocks in the market today.