Re: How's this for an objective evaluations?
Topics: Budget
23 Jun 1993
From: ervan
> [ Don't complain unless you have constructive suggestions. ]
Given the current political environment, all constructive solutions
are unrealistic. I'm an ultimate cynic, all political
institutions degenerate toward socialism/fascism, bankruptcy,
and revolution (or military defeat). I just want the U.S. to
last my lifetime.
As for some plausible ones, I would suggest the following:
1) A balanced budget amendment to take effect by FY 1998.
2) A line item veto (I'm finally convinced, though just barely).
3) Eliminate the silly farm subsidies (e.g. tobacco).
4) Dump the NEA and the REC, widely recognized as totally useless.
5) Limit all entitlement growth to min(growth in wages,inflation,
growth in government receipts)
6) Turn over specific weapons purchasing power to the DoD (instead
of congress), then whack another 10-20% out of defense in a year or so.
In other words, the obstacle now is pork-barrel defense spending.
7) Permit people to buy out of social security by paying part of
their taxes but getting none of their benefit.
8) Dump the VA and buy private insurance (this actually would save a
lot and create better care).
Now, for some truly practical things, that will never be accepted:
10) Eliminate farm subsides. These cost $20G+, hurt consumers,
and, by and large, help rich farmers who don't deserve it.
11) Legalize drugs. Savings from prisons and law enforcement
would run about $100G and tax revenue would be several
$G (but hard to estimate).
12) Dump social security completely but leave in place tax preferences
and default employer plans to encourage foolish people to save.
For you and me, FICA will return <35% of our investment, if it
survives, which is unlikely.
13) Get rid of the minimum wage. The GNP boost would create more
tax revenue not to mention unemployment savings.
14) Get rid of HUD. We could do far better by giving the people
the cash.
15) That leaves, as a biggie: medicare. There are no good answers
here. The time is nigh when people are simply going to have
to accept that all of the technologically conceivable health
care cannot be had. So, limit medicare as in (5), go with
20% copayments, and let the limit float as high as (5) will
buy it. Some people will die because of lack of money, yes.
That's inevitable.
Caveat: This is not my list of favorites or even what I think
are my best ideas, but they are what come to mind at the moment.
> [ Clinton's deficit reduction plan is better than none at all. ]
No, it's not. It's worse than nothing. It will worsen the deficit.
The cuts don't even kick in for 3 years. Gramm-Rudman mandated a
balanced budget. Congress agreed to ignore the law. In the case of
the Clinton budget, it is not even a matter of law, but just a vague
promise. The extra taxes will result in extra spending, not deficit
reduction. I hope I have your e-mail address in four years so I
can rub your nose in it.
----Ervan
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