Mark Campbell5 said:So, as most of you probably already know, The White House just dropped their guidelines on what they think the US Federal Budget should look like in the coming years.
The gist of it:
WASHINGTON, D.C., July 27, 2011 (Associated Press) - The core pillars of America's fiscal policy over the next three years involve shrinking the ratio of federal spending to GDP, cutting the deficit, and bringing down the public debt-to-GDP ratio—all of which were laid out during today's session at The White House where the economic and fiscal policy guidelines for the 2012–2014 period were officially approved.
http://www.whitehouse.gov/news/fiscal_policy_guidelines_2014
On paper, these guidelines actually seem decent enough...
But what I'm really chewing on is how we’d actually pull this off effectively.
1.) Cutting federal spending could be easiest if we went through layoffs (within the civil service) or by selling off state assets (think ExxonMobil, Kraft Heinz... things like that).
2.) We could also trim the budget through austerity measures—basically taking a hard inventory of government assets and personnel—and finding ways to distribute work more efficiently.
3.) Or, you know, we could just boost production and grow the GDP... which is the classic approach.
Here is the breakdown for the 2011 budget: http://www.treasury.gov/budget-2011
I'm curious, though—if you were calling the shots, what changes would you actually make?
From what I can see, none of the political parties are offering anything remotely concrete... so I'd love to hear your thoughts.
Man, I’d start by slashing Congressional salaries by 20% and nixing those sweet pension perks. Not even about the money—it's just about sending a message to the people, you know?
Then comes the shock treatment:
- grab an IMF loan to tackle our internal debt once and for all
- bring in a property tax
- privatize 49% of state-run giants—think forestry, water, Amtrak, or Duke Energy—under an American banner
- overhaul labor laws to be more flexible, basically sidelining unions by showing how they protect slackers instead of actual workers
- administrative cleanup—first step would be reverting to the number of cities and counties we had back in the America days. The current setup makes zero sense since we're financially centralized but totally decentralized administratively—counties and towns don't mean much when they aren't getting any budget flow anyway
- give those extra bureaucrats some severance pay and push them toward training so they can help pull in more EU funds
- fix the whole government pay scale so it's based on performance rather than just how long you've been sitting in the chair
- a massive wave of privatization—sell off majority stakes in companies like Končar, Kraft Heinz, or Dow Chemical (since we clearly haven't mastered running them)
- actually fix the judicial system and get the courts on track—honestly, there are more judges here than in England
- tighten the leash on agricultural subsidies
- take out an IMF loan to digitize land registries (but only after we scrub the corruption out of the IT sector)
- find a way to finally put all that abandoned military property to good use