Fiscal Responsibility -The Reality Party supports smaller Federal Government under 18% of GDP, supports eliminating Deficit Spending by Federal Government, supports reducing the National Debt each year until it’s eliminated, supports Lower Taxes to lighten the burden on Americans, and supports a Strong Dollar policy to protect Wealth and Value in America First. The Reality Party supports a Balanced Budget Amendment for America.
You have heard the saying “Less is More”, correct? That is most true when it comes to Government. No One TRULY believes that Big Government is the Answer. They might want the convenient security of a Government who sends a check without effort or input, but the real impact of that relationship is self-oppression- both in options and in financial reality. But the reality we face today isn’t even about the problem of the size and scope of Government, it is a simple math equation of we spend too much versus the revenue we receive. Deficit Spending for years has buried this Country in about $20 Trillion dollars in National Debt, in Deficit Spending each year without balancing any Budget, in using The Fed’s $3.2 Trillion additional money to “stimulate” the Economy, in blindly raising the National Debt ceiling higher and higher, in allowing our Debt-to-GDP ratio to climb higher and higher, & in ignoring all issues and “Kicking the Can” down the road at every critical moment.
One critically important point- We have ALL benefitted by this, either directly or indirectly. The importance of this cannot be overlooked, since any solution must include mostly spending cuts and the only way to make broad spending cuts is for everyone to simply understand that “we all had a benefit, so now it’s time for all of us to give something back”.
Remember- We haven’t dealt with (or even actually discussed) Entitlement Reforms to Social Security, Medicaid, Medicare, & Welfare. And that, whether people like it or not, is the 800 pound Gorilla in the room. Until you Reform Entitlements, it is impossible to “fix” our issues. You might temporarily put off Judgment Day, but you will not avoid it completely. I say this not to scare people, but to start a partial resolution only as a springboard to a broader comprehensive real solution that truly remedies our larger Fiscal conundrum. And Trust Me, that’s a really big Gorilla… but that one is for another day (Chief of Staff Priebus has already said Trump won’t “meddle” in Entitlements), unless Trump & Company can thread the needle on multiple issues simultaneously with laser precision.
For now, let’s attempt to put into context the situation we are in. Our recognized National Debt is $20 Trillion- that is money we have already spent which we owe. We have in the Federal level another $20.5 Trillion in UNFUNDED liabilities between Public Pensions, Medicare, Medicaid, & Social Security moneys we are committed to, that simply haven’t come do yet. We have another $4 Trillion on the balance sheet of the Federal Reserve- which needs to be paid off at some point(consider the lunacy of a quasi-private entity holding debt amounting to 25% of the largest nation in the world’s Total GDP). And yet with all those financial issues- we simply refuse to make any adjustment at all. We spend more than we take in. We keep renewing contracts for more pensions and higher government wages. We simply cannot make tough but compassionate decisions to put our house in order.
Until now, that is...
Trump has a particular opportunity that could reform, reset, restructure how American Government approaches its spending, revenues, and the balance between those forces. He has a wonderful economic window to drive revenue up, to drive efficiency of scale within Government, and has a Republican Congress (Senate and House of Representatives) to do what needs to be done.
His economic approach is quite interesting and is broadly viewed as a Win for everyone. It involves Comprehensive Tax Reform (not done since 1986), Trade Deal Reforms (TPP, NAFTA, China are top 3 on the list), Deregulation, & Repeal/Replace of the ACA (Obamacare).
Trump inauguration to Office on January 20 give him the official title of President, but work has already started now on targeting which regulations to roll back, crafting legislation that will be acted on as of Jan 1 when Congress gets back to work & hit his desk probably on his First Day in Office, & then starting to repeal certain Executive Orders on his First Day. Trump and Congress should be quite aggressive in driving certain legislation through the House of Representatives (Tax Reform, Healthcare Repeal/Replace would top the list). He also will be quite active in enforcing the Laws on the books already on things like Immigration & National Security.
But he will need to have some particular direction besides the obvious- Does he address Entitlements at all? Does he direct Repatriation money toward an Inner-City Poverty solution? Does he truly Defund Sanctuary Cities? Does he defund certain Universities who refuse to enforce Immigration Law completely? Does he ask for, and get, the Resignation of Fed Chair Yellen? Does he actually reduce the Size & Scope of the Federal Government? Does he truly “Drain the Swamp” & what effect (good or bad) will that have on our Leadership, Society & Economy? Will he pursue Criminal Justice Reform? How will he impact our Foreign Policy & where will he prioritize?
So what are some things Trump should do to attack Fiscal Responsibility for All Americans? Here is my list of suggestions for Donald J. Trump to consider as he goes down a path of necessary Fiscal Discipline.
Promote and Pass a Balanced Budget in Year One using 95% of Prior Years Spending as Target
Repeat this Process for Years, until Government Spending is maximum 18% of GDP
Promote and Pass a Balanced-Budget Amendment for Years moving forward
Downsize the Spending & Scope of Federal Government critical in attaining 18% maximum of GDP Goal
Consolidate the Number of Departments/Cabinet Offices from 16 to 8:
Combine Labor, Commerce, HUD, Transportation- Dept of Domestic Commerce
Combine Defense, Veteran Affairs- Dept of Defense & Military Affairs
Combine Interior, Agriculture, Energy- Dept of National Land & Resource
Reduce Dept of Education Advisory Panel (Block Grant Money to States)
Reduce EPA to Advisory Panel States Empowered to choose/decide
State, DOJ, Treasury, Health & Human Services, Homeland Security Remain Independent
Use any & all Surplus from Pro-Growth Tax Revenues to Pay Down National Debt
Audit the Fed, Create and Publicize the Exit Strategy/Timeframe to Reduce their $4 Trillion Balance Sheet
Regain Triple A Rating for US internationally, and maintain
Promote and Protect a Stable/Strong Dollar Program to Protect American Wealth
Helps Foreign Nations who use US Dollar as Reserve Currency
As Fed tightens and dollar grows stronger, subtly monetize some Fed Debt into that strength
Revisit Simpson/Bowles; Use it as Framework for National Debt Reform Package Dialogue
All Mergers will be treated as “mutual acquisitions” to eliminate the Tax Benefit of this category
All Foreign Corporations will pay a 10% Purchase Tax for any Takeover of an American based Company
Eliminate Pensions for ALL Federal Government & Agency Positions
Replace with a 401K & 5% Government match
Current Unfunded Burden from Federal Govt Pensions is over $3 Trillion as of 2016 & climbing
Enact “Right to Work” Freedoms for all Federal Employees
Reduce Taxes to Stimulate GDP Growth- Comprehensive Tax Reform for Individuals & Corporations
Higher Tax base /Reduced Scope of Federal Government creates Surplus for Debt Reduction
Raise the National Debt ceiling one-time to an agreed-upon level
Account for ALL monies already spent
Fix the revenue/spending ratio to prevent any breach of that
Establish hard cuts (austerity plan) if “real ceiling” is breached
Mandate PAY-GO (Pay As You GO) for All Legislation & Executive Orders
Reform Entitlements to make and keep them Financially-viable in a long term “Fair & Disciplined” way
Current Federal Pension/Entitlement Unfunded Future Burden is already over $20 Trillion
Social Security- Tiered program, Uncap SS contribution, Asset Screen Qualifier, “Need” based-not “Want”
Most “solutions” recommend raising the Age Qualifier- ignoring the purpose of Need
Some Politicians like Obama/Clinton/Sanders, have talked of Expanding it, without Paying for it.
SS Disability- Independently review all SS Disability claims post-2000
Mandate Independent Yearly Doctor Evaluation
(Independently Certified & Rotated Randomly)
Doesn’t it strike anyone as odd that we had a surge in this during the Great Recession?
Doesn’t it strike anyone as odd that Puerto Rico has the highest number of claims?
Combine Medicare & Medicaid to eliminate waste of redundancy, revamp Patient care & cost burden
Re-evaluate the Current Status of ALL Entitlements, Costs, and ability to Self-Finance
Post Publicly for Transparency, Reduce & Reform all for cost efficiency- critical needs
If Trump were to do some or all of these provisions, the Fiscal Responsibility would show in numerous ways- not only in America but around the Globe.
Fiscal Responsibility also crosses into our Foreign Relations & Policies in ways beyond common thought. National Security is threatened mightily by a tremor of terror to a weak nation unable to fiscally defend itself. Burdens of Debt and future mandated but unfunded Benefits take on a different look when a Country is underwater financially. The Economies of the World are pegged or hinge on the American Currency being solvent, strong, beyond reproach or doubt, & trusted by all who use it directly or indirectly. Our Leadership tends to “Kick the Can down the Road” cowardly avoiding the direct current cost and piling on a future burden those others must shoulder. Future generations are by default caught in a game of “hot potato” where it is passed along- but inevitably the burden must be addressed or the sheer weight of it will come crushing down in a huge fiery mess and would destroy all who touch it- so in this case the Entire World Economy. There is no other way to see it, and that is the Reality we all must face, recognize, and thoughtfully decide how to compassionately unwind.
The Fiscal damage we have done to our great Nation has been done over numerous decades and generations. It will not be undone in a moment or a single act, but over a long period of time that is decisive, committed, diligent & patiently prudent by all.
We owe $20 Trillion Dollars in National Debt.
The Federal Reserve is another $4 Trillion Dollars in Debt ($3.2 Trillion more than normal).
Unfunded Mandates at the Federal Level (Pensions, Social Security, Medicare, and Medicaid) is another $20.5 Trillion Dollars in Debt.
As Boomers Retire in more and more numbers, the Math gets Worse.
As Time Ticks By, the Math gets Worse.
There is No Version where We can “fix this” without Everyone having to Give Something Up.
No American benefits by a Large National Debt & Fiscal Irresponsibility- They Always end Badly for All.
American Rule to Live By:
If any Politician uses the word “FREE” when describing a new program, Don’t Believe Them!
No such thing as a Free Lunch, Free College, etc.
The Money MUST come from somewhere & that always means US(as in Taxpayers like You and Me).
IF you Liked Chapter One of "REALITY, USA", the Full Book is available on Amazon.com
Please be sure Read, then Review!!