I find it very disturbing that Washington’s priorities are, in my opinion, totally wrong.
What is Washington working on?
- Raising the minimum wage
- Raising taxes on the rich
- IRS targeting of conservatives
- Increasing regulation on carbon based energy
- The Ukraine
- The Affordable Care Act
- Women’s reproductive rights
- Equality of pay for women
Virtually nothing about:
- The budget deficit
- The overwhelming national debt.
Almost everything in the ‘active’ list limits economic growth and adds to the national debt.
Why do the items in the second list deserve priority treatment?
As our economic power decreases the chances of the dollar being replaced by some other currency increases. When the dollar is no longer the world’s currency, we will see our cost of borrowing go up dramatically. Let’s assume the national debt grows to $20 trillion (which it is rapidly approaching) and the interest on that debt increases from 2.5% to 6% (a more normal rate).
Suddenly the interest payments will increase from about $225 billion to about $1,000 billion.
How do we fund a governement that today spends over $4 trillion when fully 25% would go directly to debt payment?
We can only hope to resolve our economic problems by making growth easier and reducing spending and thus reducing our annual deficit.
Since there can be no reduction in the national debt without eliminating the annual budget deficit our number one priority should be reducing that annual deficit.
Theoretically this can be accomplished by either reducing spending or increasing economic growth.
Current priorities in Washington do neitheer! In fact most of the actions currently being promoted will reduce economic growth.