Say you're a political adviser. You are in West Hollywood, sit together with the party sponsors in a strip club in style sadomasochistic, and they pay their bills, and, of course, you think about what this great country. Sharply by a sense of gratitude, and you want them to repay. Would you like to avert a looming financial disaster in the country.
The problem, as you see it, is that unlike you, other Americans have grown in prosperity and carelessness. Two hundred years they have lived in danger. There have been booms and busts of economic cycles, devastating epidemics and natural disasters, which comes without warning. Such conditions were forced to be cautious. The thought of going up excessive debt, filled their moral horror.
However, in recent years, life has become safe. This undermined the fear of debt, private and public. In 1960, debt households in the country accounted for 55% of national income. By 2007 it had grown to 133%.
In 1960, the politician would be removed from office if he allowed the federal debt doubled in a decade. Nowadays, politicians soon be fired if they try to stop it.
These days, voters want low taxes, about 19% of GDP. And they want to spend a lot, about 25% of GDP by 2020. As a result, the federal debt, which was at around 41% of GDP two years ago, is projected to soar to 90% of GDP in 2020, according to the Congressional Budget Office. By that time, only interest payments will be $ 900 billion a year.
This whole mess, you repeat yourself, called democracy and moral decay. Should be a moral revival. Who will be able to cope better than you yourself? God sent you to Earth, to control the electorate for the benefit of the country.
First, you must change the social norm. The financial crisis had helped to convey to people the idea that too much debt - it's dangerous, but there will probably still need a crusade against the pollution of waste and smoking, to finally bring this idea into every home. Do you think of Warren Buffett (Warren Buffett) on television. Oprah (Oprah). Tom Hanks (Tom Hanks). Someone should remind the country that excessive debt is selfish.
Secondly, all associated with a deficit, you must convert. Teachers would say: "You're badly behaved. Eat your broccoli. Accept lower standards of living. "
Thank God, it is still a nation Billy Mace (Billy Mays). The message should read: "The U.S. may be richer and brighter!". Debt reduction should be associated with renewal and prosperity, and not with the pain and sacrifice.
This means that deficit reduction should be included in policies to achieve economic growth. Michael Gratz (Michael Graetz) from Columbia University proposes to replace the current tax code is a horrible 14% VAT, to reduce corporate tax rate, and introduce a fair tax on income from two limitations over 100.000 dollars. Many people have ideas about how to come to the welfare state. The answer they should be: can we afford to have a powerful system of social protection only if it would be more effective.
In this case, you will have to mobilize the political class. Now some people think that they have chosen officials are so "rotten", that is not only the elected commission can save us. Snob. Stories such commissions - a history of failures. Stuart Butler (Stuart M. Butler) of the Heritage Foundation and Henry Aaron (Henry J. Aaron) at the Brookings Institution argue that in a democracy is simply impossible to rewrite the terms of the social contract without the consent of society. Commission - is good, but they should participate in broader democratic processes.
The method by which this can be done is to release from the polarized structure of the committees. Invite a dozen selected senators and members of the White House, and collect them in the same room three times a week for six months.
Once they come up with a plan to reduce debt, send them to the presidential commission on the deficit, which providentially created Obama.
Obama was not recklessly brave on this issue, and fought against the powerful political pressures on a number of mechanisms that are gaping loopholes in order to achieve expenditure control, such as payments under the program of free medical care, and pensions out of current income. If he had the necessary support, he would have done everything correctly.
When the secret plan of the Congress will be held at the White House Commission on deficiency can present it as a result of independent politicians eksperitzy. This may give some political cover to legislators, and all the guys in editorials and analytical centers will go down in ecstasy. You will convince all that such actions make the government less intrusive. You will persuade business that it's easy. You'll convince liberals that the rich will bear the heaviest burden. Everyone will pay something, but all will see their benefits.
If you can do this, you will save the country. If not, it will be the fall of Rome, and you might as well can stay in a nightclub.
The New York Times
No comments:
Post a Comment