There is growing anger being displayed in Europe over austerity measures. People are upset with spending cuts by various governments and the threat of increased taxes.
There are budget crisis and governments no longer have the resources needed to cover the expenses associated with years of very generous entitlements. The protests that we are witnessing are coming about because many that will be impacted claim their livelihoods will be compromised by these changes. Unions are showing solidarity with the protesters - often encouraging them. They claim the protests are necessary to show the scale of opposition to these austerity measures. Governments are feeling the squeeze between what they know has to happen and what the protesters are demanding. There is not a lot of room to maneuver.
Is this what we can expect to happen here in America? Today we find ourselves on the edge of a cliff - teetering one way or another. Come January America will either fall over the cliff or get pulled back. In either case we as a country will find ourselves having to make some very unpleasant decisions. We run the very real risk of taking the path that Europe is going down. We cannot, though, continue upon the path that we find ourselves on. Raising taxes and cutting back so that we can live within our means is the only way to get us out of the hole we are slipping into.
There are going to be some very tough decisions that our leaders will be making. Decisions that will affect the entitlements that many in this country have become dependent upon. Pensions that can not be funded in the manner that they once were. There seems to be three options available to us:
1. Raise taxes on those that are still paying taxes. Do this across the board. There should not be any segment that gets a free ride. Raising taxes will in theory keep the entitlements that are out there and would cause the least harm to those receiving them.
2. Raise taxes and reduce entitlements. Do this across the board. As above no segment of society should get a free ride. Everyone will feel the pain.
3. Raise taxes, reduce entitlements and encourage job growth. The idea of getting more people on a payroll and paying taxes means in theory that taxes would not have to be raised as much and entitlements would not have to be reduced as much.
There are many ideas that could work - what is not working are the current ideas because it is only delaying what is inevitable - what we are seeing in Europe. If that is what this country wants then I suspect we will be seeing it soon. America is not like this - I hope
The options are relatively clear, but the choice of which to take depends on one's view of government, its aims and purposes. It also depends on leadership. At the moment, the US seems to be attempting to run in at least two opposing directions at the same time. We have those who are adherents of Roosevelt's "New Deal", and others who say "been there done that", and it worked poorly, stifled grown and made people dependent on government. There are better ways: let people keep and spend their money, free businesses from constricting anti-growth regulations, and get them spending on growth and hiring.
ReplyDeleteThe recent national elections suggest that voters want more FDR, that people don't understand the bolder choices, that they are afraid of them. So they voted, "No". Or, perhaps, "Not now."
It is the capacity of a split government to deal with the fiscal cliff that will test the players. Can they do it? Watch world markets give us a daily numerical opinion. Fasten your seat belt, here we go!
Government seems to take a middle road - or at least it did in the past. Right now we are and have experienced a swing towards more and bigger government. Where more become dependent on the government. The United States is only looking for unrest should it stay the course and continue down the path that Europeans took a long time ago. We are weak economically and dependent on those who will loan us money - that is a bad position to be in.
ReplyDeleteWe as a nation need to make the tough choices. If we don't our children or our grandchildren will have to.
ReplyDeleteIf we put off what needs to happen - our children or grandchildren are going to have a harder life than if we just start it now. The quality of our lives may sting for awhile - but that is what makes this nation great - the hard work and determination we put into an idea.
DeleteBut the great mass of the public don't have a clue about the dangers. There is no sense that WE are the financiers of "the government", there is no connecting the dots from my taxes to a larger government.
ReplyDeleteBy "WE" it is assumed you mean the few tax payers that are out there are financing the government. Where I live here in the midcoast area there are so many people on government assistance getting things for "free" and there is no incentive to do anything else.
DeleteYou are right. It is those people who pay taxes. It is my contention that those who get something "free" should perform some public service for the "free" services. There are many unmet needs in various public services that could be designated as opportunities to "pay back" for "free" services.
DeleteToday in the Portland Press Herald there was an editorial scolding the Chamber of Commerce for its remarks last week about adding to housing for the homeless will make Portland the "homeless capitol of Maine". The editorial is a classic piece of "all heart; no brain" thinking. Why not attach work to housing for the homeless?
People have been conditioned that to expect that many of these entitlements are "free". Free phones, free birth control and free health care to name a few of the "free" things being given out. People who get these entitlements do not realize where the money is coming from. Me and you and other tax payers - who are a dying breed are being asked to pay for this. I see nothing wrong in asking for something back. I had to work and put in long hours to pay those taxes. Give something back for what you are getting from society.
DeleteOnce the government has given a service or something like money (food stamps, subsidized housing) just try to get it back- or try to get some form of payment! No wonder these are called "entitlements".
ReplyDelete