Category Archives: Debt and deficits

What I was talking about

My Arkansas News Bureau column this week took state legislators to task for cutting taxes without first cutting spending. My point: With the state already owing the federal government $330 million for unemployment benefits, the responsible path would be to cut spending, pay down the state debt, and then cut taxes – in that order. You never know when unexpected expenses may occur.

Such as the $23.5 million legislators learned about yesterday that the state will have to pay in state employee salaries because the calendar squeezes in an extra pay period this year. It happens every 10 years, and of course, the calendar we use today was invented more than 400 years ago, so this shouldn’t have come as a surprise.

But it did, which is why responsible adults leave extra leeway when they think about reducing their revenues.

Read more about the $23.5 million shortfall here.

And if you’re interested, here is my column from Wednesday.

Keep it up, Senator Pryor

Senator Pryor again mentioned the “S” word – “sacrifice,” this time in a conference call with reporters. Here is the story.

That’s twice in recent days he has been telling Americans what they need to hear – that balancing the budget will be painful, that we can’t have our cake and eat it too.

Here’s the other.

Column: Need to invest in Alzheimer’s research

There are few people who are bigger deficit hawks than I am. I’m convinced the national debt is the greatest threat facing our country right now and would support any policy that would reduce it long-term.

Which is why I call for INCREASED spending in my Arkansas News Bureau column this week – on Alzheimer’s research. That’s because we have no idea how to stop, cure or prevent the disease, and as the baby boomers age, costs will be enormous and the burden on families unbearable. According to the Alzheimer’s Association, annual costs of the disease will rise from $172 billion today to more than $1 trillion by 2050. And if you have ever had a relative with Alzheimer’s – and I do – you know the toll it takes on them and their loved ones.

Here’s the column.

Sunday column praises Pryor for Social Security/Medicare comments

I wrote an extra column for Arkansas News Bureau Sunday. Jason Tolbert, who usually has that space, is busy with his day job as a CPA and needed a break. My column praised Mark Pryor for telling the Little Rock Rotary Club that something has to be done about Social Security and Medicare. Here it is.

It takes political courage to mention Social Security and Medicare because the issue is so easily demagogued and misunderstood. Two readers emailed me: one accusing me of wanting to “get rid” of Social Security, the other from a senior citizen who (correctly) pointed out that he has paid payroll taxes all of his life and (incorrectly) that other areas, such as congressional salaries, are where the real cuts need to be made. That’s pennies. You have to cut Social Security and Medicare – not for current recipients, but for future ones like me – because that is where the money is. According to the Debt Commission, ALL projected tax revenues will cover only Social Security, Medicare, Medicaid and interest on the national debt by 2025.

That means you have to cut everything else completely, including national defense and highway construction, in order to balance the budget. Or we could raise taxes far higher than they are now. Or we could just keep borrowing from China until it takes us over.

The other choice is to have a mature conversation about Social Security and Medicare and then come up with a responsible plan.

Brummett takes on “American exceptionalism”

John Brummett has an interesting take on “American exceptionalism” is in his Arkansas News Bureau column today. He rightly points out that Republicans are using it as a wedge issue to question Democrats’ and Obama’s patriotism and also makes the point that in some ways, the country is no longer that exceptional. However, he does include this high note near the end:

“Yet we must not despair. There remains something exceptionally rare, indeed great, about America.

“It is that we could blow up the world, but we don’t. It is that we possess the muscle to conquer and make territories of these places that we, frequently in futility, invade with our young people and military resources. But we don’t. We seek to help the people of these distant lands. We let them have their oil. We may be arrogant, but we are not cruel.”

Amen to that. Here’s what I would add: I think this attitude is a major contributor to some of our most vexing issues. “You mean, we can’t cut taxes and increase spending and still balance the budget? Why not? We’re Americans!” Also, “Of course we can transform Iraq and Afghanistan into democracies at little cost.”

Time to be more realistic about our country’s situation and make some hard choices.