Our national debt is an anchor keeping our economy from growing. Does anyone disagree with that? So what do we do about it?
Like any shop-aholic we can not ask Washington to quit cold turkey, look how they are freaking out over the debt ceiling debate. But like any shop-aholic we can not give Washington an unlimited credit card. So I propose that we grant the federal government an increase in the national debt ceiling. Wait, don’t start throwing tea bags at me yet, listen to the stipulations I would place on that increase. I would allow congress to raise the debt ceiling with two stipulations:
- No new spending until the budget is balanced.
- A debt ceiling reduction schedule.
My point one is necessary because Washington can not take a rise in the debt ceiling as an opportunity to create new spending programs that will continue to drive our economy in to the ground. I think this is a nice barrier to put in the way of an over grown federal government while allow us to meet out debt obligations.
The second point is necessary because it would create a timeline to get our debt under control. I would say lowering the debt ceiling by $1 trillion a year until it is down to $0 starting in 2014. This gives the federal government time to clean up its books and stop borrowing more money before they are forced to start paying back the outstanding debt we have. There would be some fine print that restricts the raising of income taxes, but would allow closing tax loop holes that favor corporations and unions.
This plan accomplishes two things, it forces the federal government to balance the budget and to payback our debt. Could you image the strong economy we would have if we have no federal debt and a balanced budget? You can not even dream about the level of growth and prosperity we would see as a nation if we did.
Now is the time to go through the pain of 20 years of reducing government spending until we get to a balanced budget a zero debt. Tomorrow is the time for prosperity, tomorrow is for out children and grandchildren, tomorrow could be a brighter future if only we are willing to act like adults and be responsible with the federal government TODAY.