Three billion dollars. No matter who you are, that's a hefty sum of money. And that's how much more in debt our nation gets every day. That's right, every day, including weekends and holidays!
There are many things President Obama must cover tomorrow night in his State of the Union address. The state of the economy and employment levels, national security and foreign policy issues, and a variety of other issues that contribute to the overall picture of our nation's well being.
But our nation's finances are in such dire straits that they are reaching a critical condition and must be addressed. The truth is, with our deteriorating financial condition, high unemployment, political stalemate in Washington, and declining public trust and confidence, the state of our union is not strong.
In his upcoming State of the Union address, President Obama needs to be candid about the true state of our nation and the challenges that we face. There are five critical things regarding our nation's finances that I hope we will hear him say.
1. First, the president should acknowledge that the financial state of our nation is NOT good and it hasn't been for several years now, including in the final years of President George W. Bush's presidency. To be blunt, the facts don't support any claim otherwise. At the end of the last fiscal year, our total federal debt was nearly $15 trillion and we were in a $65.5 trillion dollar financial hole -- that's more than $550,000 per American household.
2. Second, he needs to make it clear that we can't put our fiscal house in order without reforms to existing social insurance programs, as well as comprehensive tax reform that generates more revenue. It's simple math. Everything must be on the table.
Social Security, Medicaid and Medicare are all on a course to bankruptcy. With timely action, we can preserve these important social insurance programs. We can raise more tax revenue by making our tax system simpler, fairer and more competitive.
3. Third, the president must tell us that the cost of our current healthcare programs is the one thing that could bankrupt this country, and that reforms to date have not adequately addressed out of control health care costs.
Believe it or not, the U.S. is the only major industrialized nation that does not have a budget for what the government spends on healthcare. We are the only nation dumb enough to write a blank check for health care. That must end.
4. Fourth, he needs to put to rest claims that any cuts in defense will jeopardize our national security.
We currently spend more on defense than the next 15 countries combined -- and many of them are our allies! The Department of Defense is also a bloated bureaucracy. Any credible plan to control deficits and address our exploding debt burdens has to include reductions in defense spending.
5. Finally, the president needs to call the political system what it is: totally dysfunctional. The type of major reforms that are needed can not be accomplished until elected officials put their partisanship to the side and bridge the great ideological divide that exists in Washington, D.C. Elected officials must put America's interests above their personal and partisan interests. In fact, the so-called super committee's recent super-failure served to reinforce the most biggest deficit we face as a nation: a leadership deficit.
I've detailed each of these points in my Fiscal State of the Union address, but I'm just one citizen patriot. We need our president tell us the TRUE state of the union. In fact, we should demand it. All Americans should tell their elected officials that we want them to tell the truth and hear what they will do to restore fiscal sanity before it's too late.
If you let them ruin it, many will be paying military and govenment pensions with taxes, but you will only have investments. Public schools and some medical programs are about all the middle class get besides Social Security.
If you only have investments, then you will be at the mercy of Wall Street for retirement.
You have to know what his words mean. ‘More competitive’ means cutting everything for the middle class and also cutting taxes for the rich so they can undercut foreign businesses. They never talk of business taking less profit. When they say ‘entitlements’ or social insurance programs they are talking about Social Security, Medicare, VA benefits, etc.
Many good suggestions have been made on how to fix the programs. That is ignored by those who want to cut our programs. Medicare patients are being overcharged especially by the prescription drug program.
More jobs would solve a lot of the problems, but most big businesses are deliberately holding back until they get Obama out of there. IMHO
The US spent $698 billion in 2010: funding two wars in Iraq and Afghanistan; operating 1,000 military bases; and sites worldwide and maintaining the Pentagon’s 234 golf courses. CIA World Factbook Center for Arms Control and Non-Proliferation.
US military spending increased by $19.6 in the US , according to a report released by the Stockholm International Peace Research Institute (SIPRI).
I am told that when they say they will cut the military budget that means it won’t increase. There will be no cuts to the budget they have now, but they will not increase it.
So many things were not mentioned. Some people call that lying by omission.
is a bit dubious with regards to Social Security.
In theory, around 2036, social security payments by law would have to drop to payroll taxes collected instead of scheduled benefits. But that would only be a drop in benefits of around 20%. Bankruptcy is a scare word usually reserved for something more total.
Walker didn't really need a job, he gets a big pension from the government and almost free health insurance.
Has anyone noticed those who most want to cut our programs we paid for and saved for, are on the public dole with a luxurious government pension and almost free health insurance.
I suppose Pete is still spending big bucks to get rid of Social Security, Medicare, veteran's pensions, medicaid, etc. He can afford it, he made a fortune off the stock market.
Medicare retirees are not using too much health care. Medicare patients are being charged too much by big pharma and the rest of the industry. I can't understand why the government is subsidizing the overcharges of Big Pharm. I suppose they are using our Medicare money to do the subsidizing.
The only medicare money I thought was a wasted was on preventive care. The tests they pay for are very expensive. The medical industry says it will save money, but I doubt it. Most of us know, if we need to see a doctor and the doctor knows when he needs to test us.
We need the facts about Social Security and other programs put on a website so we can link many to it so no one has to repeat any of the points.
He totally lost me at ""Social Security, Medicaid and Medicare are all on a course to bankruptcy. ""
What utter BS.
Also, there is a difference between "medical costs" and the PRICE of medical care. The prices in this country blow away the pricing for the identical procedures, medications, etc, of just about any other country...yet people like Walker sit on his throne and point the fickle finger of judgement at everyone as though we're spending AT him, being bad little children who don't know how to save our allowances.
Utter nonsense.
I say take away those kinds of privileges and votes, and we'll see a way different ball game in congress and the nation.
A lot of those you want to kick to the curb are disabled, layed off, or have mental or emotional problems that makes them unable to work. They may even be in jail.
It would help if businesses would pay more than welfare and food stamps do. Ever hear of the working poor?
What a lot of the intellectuals miss is for everything that the government does to help the underpaid there is a job created and money made by a business. A profit off of our programs.
The fed is ruining the economy printing more money but they focus on the 89%.
At issue is the political will to address the solutions. And that means first dealing with a fundamental dichotomy.
America is a vastly wealthy and productive country. Financial resources in the private sector - the trillion dollar capital overhang, for example, and record corporate profits and cash - are profligate. Mega banks are profitable, Wall Street continues to issue bonuses, GDP rises quarter after quarter (albeit modestly) and senior executive compensation continues to climb.
In other words, the financial state of America's financial and corporate sectors is quite strong: it is the financial state of our government, and the majority of our citizenry, that is not.
To be even more precise, government programs which serve the majority are not strong; unlike government programs providing lucrative energy and defense contracts, that protect corporate subsidies, cheap money, and tax benefits for the wealthy.
No change will occur until the majority of Americans agree that a first class nation needs a first class government; that it must be paid for, just like groceries or airline tickets; and that those who benefit disproportionately more from government - the wealthiest and our corporations - should legitimately invest more in the financial solvency and effectiveness of government for all.
That's the job of the President.
To start, he should finger Grover Norquist as the traitor he is.