The Political Hurricane

Presidential elections are similiar to hurricane season.  We know the time of year they are coming.  We can put up posters and place reverse 911 calls to warn people.  We can provide a checklist of essential steps people should take if they wish to survive.  But, just like the hurricane, politics rush upon us and seemingly “catch us by surprise” or “I didn’t think it was going to be THAT bad”. 

And here we are again, hurricane watching, waiting for the Presidential election storm to pass.  And, just like a hurricane, we will assess the damage AFTER the storm or in this case the election.  And if that sounds a little bit familiar remember what Nancy Pelosi said about the Affordable Health Care bill before the vote was cast to pass it,  “We need to pass the bill to find out what is in the bill” – we have slumped into assessing the damage AFTER the storms.

Let’s take a new approach and actually it’s an old approach.   Why not use one of the Boy Scouts motto of “Always be prepared”.   Why not use the mentality of a boxer and establish the jab, get your opponent on the defense, keep attacking.  Why not adhere to the sermons that are preached to us each sunday and be ready for the judgement day!  And do what a fireman does before they enter the burning building, they pull up their pants, put on the boots, jacket and hardhat – then they HELP everyone in need.

We need to take this approach with our government, we need to take care of some things at home first.  Get ourselves prepared for judgement day, which is the pending debt crisis that all of us should agree has happened and is happening.  And to our spoiled children we need to reduce their allowances.  We need to reduce some funding across the board to all departments, countries, special interest groups and all tax credits to all!   Let’s start with some simple math.

If the total budget of our government is approximately $4,000,000,000  (looks better when all zeros are attached) then let’s make it simple for all politicians and non-math majors.

1.  We cut the budget by 5% each year for the next five years.  Across the board cuts.  The President, congress, IRS agents etc. down the line reduction.  No one will loose sleep over this.
2. We FREEZE all tax laws, all budgets, all everything (unless an act of war or act of God – and a business going broke or bankrupt is NOT an act of God!)

Simple.   Why do I think this would work?  Again, simple math.  If businesses can can’t on what will happen in five years they can plan, they will spend, they will hire.  Investors will invest, builders will build, retailers will purchase more inventory, which in turns means more manufacturing, which in turn means more trucks, trains and freight being shipped.  This means more workers needed to make, stock, ship and build things.  Which means now my kids can go to movies, eat junk food and I can get my teeth cleaned.  Which means my dentist needs to hire my niece to clean teeth and now she can move out and buy a car. (Are you starting to see the picutre?)  All of this means every person employed pays in taxes (i.e. social security, medicare, and income tax and sales taxes).  It is the circle of a thriving economy. 

What will happen is that the federal tax receipts will grow and let’s say by a very moderate 5%.   I call it the 5+5=10  always has, always will.   We cut the budget by 5%, the tax receipts grow by 5% and we have a 10% turnaround.  We will have a balanced budget in 5 short years at which time then we can start turning arount the total debt.   But first we must take care of us.  It is time to be selfish.  Check my math below.

		Est. Total Budget	Est. Total Receipts
1	2013	4,000,000,000	2,900,000,000
2	2014	3,800,000,000	3,045,000,000
3	2015	3,610,000,000	3,197,250,000
4	2016	3,429,500,000	3,357,112,500
5	2017	3,258,025,000	3,524,968,125