"The nation is drowning in a sea of red ink, and the voters have rightly said, `Enough,'" according to Alison Fraser, director of The Heritage Foundation's Roe Institute for Economic Policy Studies. She continued, "We must tame federal spending and protect our children and grandchildren from crushing debt or taxes. The policies set forth below will achieve a stronger America, one where our families and businesses are much better off."
Fraser suggested the following ways to cut American debt: establish spending targets and reduce total spending until we spend no more than 20% of our economy; fix the budget process and install firm spending caps for both total spending and entitlements; provide for a strong defense; implement broad spending reforms including entitlements; keep taxes low by making tax cuts permanent, eliminating the death tax, lowering the corporate tax, etc.
According to Amanda Reinecker at the Heritage Foundation, the United States is now borrowing approximately 40 cents of every dollar we spend and our $14 trillion national debt is approximately 70 percent of our economy. I agree with her that America has a big problem. She suggested a couple of ways of solving our problem: doubling our tax rates and/or lowering our standard of living. I do not like either of those suggestions, and I believe that most Americans would agree with me.
American citizens sent a clear message with the November 2010 election that we want our government to stop spending so much money. I read somewhere that a majority of Americans would rather see the federal government shut down rather than keep spending money that we don't have. The House of Representatives apparently has reached a consensus that would keep government operating; I wonder if it will pass the Senate and President Obama. Most Americans are willing to sacrifice for the good of our country, and we want government leaders who act like adults rather than spoiled children. Elections have consequences as we've seen in Wisconsin. Wisconsin Governor Scott Walker and Republicans are trying to balance their state budget, but Democrat senators left the state in order to avoid the vote. Other states are experiencing similar difficulties and union protesters. Only time will tell if America sinks or survives!