Video: Best Way to Solve Debt Problem?

The federal government increases its spending each year by between 6% - 7% and when you hear politicians talk about spending cuts, they're talking about reducing the amount of future growth in spending that grows government by a slightly less amount. It's Washington logic. Only there could increases in spending be called spending cuts. True spending cuts would involve freezing the amount of government spending so that the 6% - 7% figure actually becomes 0%. Reductions in spending should be done from that because well, that would be an actual spending cut.

That brings us to the plan of Rep. Connie Mack (R-FL). Basically, if you cut spending by 1% each year, the budget will be balanced in eight years. Instead of growing government spending by 5% instead of 7%, and calling that a cut, we'd actually be at -1% growth in spending. In many ways, this plan would be like applying the Wisconsin model - which is already working - to our federal government.

If the results of the 2012 election is able to usher in a plan like this, there could be some good to come out of a Barack Obama presidency.



h/t Hapblog