Sunday, August 14, 2011

Debt Reduction Farce - Part 2

NOTE: This was delivered by a friend.

Probably the best illustration ever to take something that can be made overly complicated and boil it down to what it really is.

US income - $2,170,000,000,000

Federal budget - $3,820,000,000,000

New debt - $1,650,000,000,000

National debt - $14,271,000,000,000

Recent budget cut - $38,500,000,000

Let’s take off 8 zeros and make this the Jones family:

Household income - $21,700

Jones’ spent last year - $38,200

Jones’ added to their credit card debt - $16,500

Total credit card debt of the Jones family - $142,710

After sitting around the kitchen table, grinding for weeks on what to cut from their spending - $385


If true, this cannot make sense to anyone with any sense of responsibility

Tuesday, August 9, 2011

Government IS Big Business

As I was running on the treadmill this past weekend (for those who know me - yes this is the third time I've violated my proclamation not to run every again...), I watched the politicians from both sides including the very biased President defend their positions. In my opinion, they cannot and will not.

Government spending has increased by over 100% during the past eleven years. The economy has not doubled. What gives the politicians the right to increase government spending by more than the general economy growth. The answer is nothing. Period. Nothing.

I want them to take a look at large businesses over the past decade. When they can't cover their expenses, they cut expenses. Cisco is the latest example. A seven percent cut saves significant bottom line dollars.

It would have really been nice for Cisco to tell customers that they didn't have enough revenue to cover expenses, so they will raise the prices. The economy cannot work and prosper in that environment. What makes government think that they can do the same? Raising taxes on a very small percent of the population will cause defection - at least of taxable income.

While I am mostly a turn-around executive, I know that cutting unnecessary expenses is critical. In my humble opinion, the US government could cut at least 30% of current spending with no overall negative economic impact.
That is just a start. Next is a novel idea – or as Obama always says “a notion”…. Why don’t we make everyone making above the current poverty level pay taxes. Even if a family of four, making $20,000 has to pay $250 in taxes, it shows a commitment to the US. The impact would be enormous. We’d actually have people voting for issues instead of making others pay their way.
I am very frustrated with our current government – regardless of political affiliation. They all need to go home and earn a living…

Thanks and please let me have your comments. It might sway my vote next year.