Well they finally did it. The Congress was able to get together and disagree enough to put out a bill that nobody likes! Kinda sounds counter-productive, doesn't it? I have to admit that defining the "current" argument in Washington these days is just about impossible, what with the 'he said/she said' bickering going back and forth and the multitude of pundits declaring what is "really important" in the current debate.
After all was signed and finished, the reporting states that there was really no reduction in spending, but in fact, the government would spend 2% more next year than this year and 4% more the following year! The bottom line: no one in Washington has enough nerve to address government spending. Our elected officials are simply pandering to the masses with their so-called stands on either spread the wealth and tax the rich or no more spending and cut the taxes. It really doesn't matter which side you agree with, because you didn't get either in this compromise.
What would happen if individuals handled their finances like this? The result is obvious: bankruptcy! Real people have one option - pay your bills or else. Why should the government have a different set of options? Afterall, our debtors want to be paid. The people we've promised money to want to be paid. If we've promised to pay them, then pay them we must (especially if it's simply a matter of printing more money). But we must stop the spending (and thereby the matter of printing more money).
We don't need higher taxes. We need to stop the spending. That means programs will get reduced or totally cut out. That is not a good platform for a politician to run on but it is the right platform. The debate in congress should be about what programs get cut back and how far, not how much more we can bring in.
In a normal household where both people are working, the decision on how to fix the finances always starts at the same place - stop spending. It's really not that difficult to decide. It's painful to implement and that is where the problem starts. Americans are whiners! They don't like pain or sacrifice, but both are part of the antidote to the snakebite of rampant overspending. You either take the anti-venom or die. Seems like a no-brainer to me.
