|Source:Associated Press- U.S. Senate Minority Leader Mitch McConnell (Republican, Kentucky) and Senator Tom Barrasso (Republican, Wyoming)|
"The Senate GOP has offered to give Pres. Obama new powers over the debt limit by letting him request increases in the government's borrowing authority over the next year, as long as he simultaneously proposes spending cuts of greater size."
From the Associated Press
I think Senate Minority Leader Mitch McConnell is actually on to something here (finally) but I would amend what he's trying to do.
I believe if the Federal Government if they are going to be able to borrow more money by raising the debt ceiling, they should show that are willing to start paying their bills by actually paying them and not borrow more money to pay other bills. Its a way to bring fiscal responsibility to a bloated Federal Government that I believe at least at times has no concept of the idea.
The Federal Government can do this in a way that doesn't hurt the country in any way, aid to the poor, aid to senior citizens, national security, etc. The United States Government has borrowed literally 4T$ in the last 2 1/2 years, not all of it the Obama Administration's fault, but it's all happened on their watch and they are responsible for dealing with it while they are in charge and they know this.
So what I'm proposing is that we raise the debt ceiling by 4T$ but we simply pay for it. If we pay for the 4T$ that the FEDS have borrowed, then we go back down to a 10T$ national debt which is still way to big, that would still be 70% of our gross national product (or GDP) but thats a lot more manageable then 14T$ or 90% of GDP where it stands now. And by paying the 4T$ off, we can also pay down our 1.6T$ budget deficit and move to start paying down the national debt as well.
This would also be a boost to our economy because it would boost the American dollar and be an indicator that America is finally getting serious about its deficit and debt and that we are finally paying our bills and will not become another Greece that is dependent of foreign money just to pay its bills.
Again we can pay for the debt ceiling increase without hurting anyone, by reducing our defense spending in areas like defending developed nations that can afford to defend themselves and closing those foreign bases.
Reforming our social insurance programs like our entitlement programs, in a way to design them just for people that need them, which is another way of saying means testing. Reforming our other social insurance programs like our anti-poverty programs in a way, so they are designed to move people off of them and into self-sufficiency.
Ending corporate welfare including agriculture welfare and other tax loopholes and then raising taxes on people who can afford to pay them. Like a new millionaires tax and a new billionaires tax. And using all these savings to pay for the debt ceiling increase and start to pay off the broader national debt as well.
We can pay for the debt ceiling increase and pay down the deficit and debt without hurting anyone who needs public assistance with strategic budget cuts, reform and demanding more for people who can afford to pay more.