Friday, December 17, 2010

Deficit reduction slogans and reality

The Federal government deficit has become an obsession with both the political parties but especially the Republicans. They are looking at even minor spending with skeptical eyes and they are saying that we are going to reduce the deficit very fast. But the reality is that these are just slogans and far from reducing the deficit, it is increasing at an alarming rate. Their favorite method of reducing spending and taxes while holding their line on increasing taxes is a hollow slogan. The deficit will never get reduced until you touch the biggest of the spending measures (that is Medicare, Medicaid, social security and defense) and also have to increase taxes no matter what.

You can see this “deficit reduction” slogan shred into pieces with the passage of the legislation of the almost 900 billion of more spending (more of that in another post). But to be fair it was now the Democrats who although losing the midterm election are still in majority till the next congress convenes. So you can see what both the parties issue headline grabbing slogans and what is the reality. Unless the people start forcefully confronting the realities and push their congressman to really start addressing the deficit (no matter what the economic situation), we will be not be able to sustain this deficit for must longer.

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