The I Ain't Got No Money Blues

Last week Congress avoided a shutdown of the federal government while debating over billions of dollars, but in reality, all those dollars are not much more than a rounding error when compared to the $14 trillion national debt. Moving forward, the debate needs to be a lot more substantial and trim many trillions of dollars in order to make a real difference in the national debt.

After proposing a budget in February that virtually ignored Washington's out-of-control spending spree, President Obama this week proposed $4 trillion in unidentified deficit reduction over 12 years, and $1 trillion of that is by increasing taxes. Even if we granted the president his budgetary wishes, we'd still be neck-deep in debt. He wants to repeal the Bush tax cuts to get back to tax levels when Bill Clinton was president. Of course, President Obama would never advocate going back to Clinton-era spending levels, which were about half of what Obama proposes spending this year. The president's commitment simply falls far short of what the American people and our economy need.

At the NCPA, we've got a better idea. Medicare makes up one of the largest parts of the federal budget. For over 28 years, NCPA experts have examined this program and others and recommended free market reforms and policy solutions to make Medicare more efficient and cost-effective in delivering on all its promises. Under reasonable assumptions, the NCPA believes we can reach the mid-21^st century with seniors paying no more (as a share of the cost of the program) than the premiums they pay today and with a taxpayer burden (relative to national income) no greater than the burden today.

I sincerely hope Congress and the Administration can come to a practical solution to address this crippling problem. America is the greatest nation on earth and we need to keep it that way. We at the NCPA are just like you - we have families and friends and neighbors who are affected by what the government decides to do. That is why we continually work with your interests in mind and suggest free market solutions with limited government intervention.

Thanks for helping us help you!

"I place economy among the first and most important virtues, and public debt as the
greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt."                                                     Thomas Jefferson, 1743-1826

Richard W. Walker
Chief Operating Officer
National Center for Policy Analysis