Quote from hermit:
So what exactly is the solution to this problem since we clearly know that Republicans are not interested to solve this especially since they created all the mess?
If you're in a hole, the first rule is don't dig any deeper. Yet that is exactly what we are doing.
We can take a page from the Clinton adminsitration, which ran a surplus, hard as that is to comprehend. The solution there was that Clinton faced a republican congress that would not pass his spending bills and forced him to accept welfare reform. A booming dotcom economy and absence of wars didn't hurt either.
I think we have to approach the problem on both the revenue and expense sides. The problem the democrats have on revenues is that they can only think "raise taxes." That is counterproductive unless the economy is booming. We have to face the fact that we ran a budget premised on a juiced-up bubble economy that is unlikely to return.
We can do plenty of things to get our economy going though. One of the easiest would be to rethink our renergy strategy. By exploiting domestic energy, we would increase employment and provide cheaper energy to industry. of course, democrats will wail that we are destroying the planet. We can make it easier to build coal-fired generating plants (why should the chinese burn all our coal?), we can make it easier to build nuke plants ( which the french of all people find perfectly acceptable), we can mandate conversion of trucking and bus fleets to clean-burning natural gas, of which we have a 100 year supply.
We need to rethink free trade to stop the off-shoring of good middle class jobs. Labor has to accept that unskilled factory workers will not make $75k a year for work that asians will do better for $5 a day.
On the expense side, we have to forget any more spending programs. Nada. No matter how popular. We can quickly save a ton of money by getting out of Iraq and Afghanistan. We are not the world's policeman any more. We can't afford it. Since we will be energy independent of the middle east, we don't care what happens there anyway. Can anyone explain to me why, over 60 years after WW II ended, we have bases all over europe, japan, korea and pacific islands? Not only do we spend a fortune on these bases, they create bad relations with the host countries. Let them defend themselves.
There are half a dozen or so federal departments that serve no obvious utility except as a reward to interest groups, eg Education, HUD, Commerce, Energy, EPA, HHS, Labor. The beached whale that is Homeland Security already needs drastic surgery, as do the redundant, overlapping and incredibly expensive intelligence agencies. Even the constitutionally justified departments are bloated with do nothing staff, all of whom make big salaries with benefits private sector workers can only dream of. They could be cut by 20 or 30% by eliminating the fluff, eg the affirmative action offices, the bloated training staffs, the redundant SWAT teams that they all have, basically anything not essential. Private business has to cut back, taxpayers have to cut back, why not government?
Medicare and SS will have to be reformed. They are the bulk of the fiscal meteor hurtling toward us. One obvious reform would be to means-test medicare for everyone younger than me. SS may have to be frozen, eg no cost of living adjustments, and benefits reduced for younger workers who have not paid into the system for a lifetime.
None of this will happen, absent some sort of crisis too dire to imagine, but that doesn't mean it couldn't be done.