Basic Budgeting 101

I was working on my home budget and it occurred to me that I should send the guidelines to every member of Congress as well as the Administration. The basic rules are simple and practical:

• Stop using credit.
• Pay off debt.
• Set aside money for a rainy day.
• Live within your means by creating a workable budget and sticking to it.

Congress and the Regime are like a couple who constantly argue and blame each other for their unsustainable lifestyle. Meanwhile, their solution to their irresponsible spending habits is to apply for additional credit cards because the current ones are maxed out.

It's past time for Congress and the Regime to jump off the fiscal debt cliff together and onto the road to financial stability. Yes, it's a big leap to make the hard decisions but other countries like Australia and New Zealand have done it and are flourishing now. The U.S. sovereign debt currently exceeds 90% of gross domestic product and we are currently on a path that will put us even closer to countries like Greece. To make matters worse, our forever-rising debt ceiling, combined with no legal deficit restrictions, suggest that the rules of fiscal governance will not protect us from a crisis. Australia and New Zealand on the other hand, have enacted strong laws that set debt limits, budget-balance targets and spending caps.

Here at the NCPA, individual choice, personal responsibility, private insurance and private savings have always been at the heart of our free-market based policy reforms. Simply put:

• Each individual should pay his/her own way.
• Each family should pay its own way.
• Each generation should pay its own way.
• Only after passing through all these filters should people turn to government.

Thank you for your support!

Best,

Richard Walker
Chief Operating Officer
National Center for Policy Analysis