• Allied Mortgage Group | Philadelphia, PA | Peter Buchsbaum

Impending Debt Crises. How to Raise the Debt Ceiling

Okay, let’s forget about party affiliation. Democrat, Republican and Tea Party aside what is the debt ceiling? If we start there maybe we can actually move forward. Congress limits the amount of money that the Treasury department can borrow to pay for the government’s spending programs. Right now that limit is maxed out. At the same time Congress requires the treasury to spend money on things like military, Social Security, and the like. One dollar of every three dollars Congress spends is actually borrowed. Hence we have a problem. Think of it like this: You have a Mastercard with a limit of $5,000 and the monthly payment is $250. You can’t make the next payment because you just paid your other bills. You call Mastercard and explain that if they raise your limit to $10,000 you will have enough money to pay the impending bill. What do you think their answer would be? Okay, enough sarcasm for one blog. If the debt ceiling is not raised the Treasury will need to address it’s payments on a priority basis. This is much like how real people pay their bills. They will also be forced to shut down nonessential government activities like National Parks in an effort to save money to pay bills. Again not much different than how normal people pay their bills. Now, solutions should incorporate the same life choices we all make every day. My ideal plan is a measured combination of discretionary spending cuts, tax hikes (close loopholes) and a reduction in benefits for social security Medicare and Medicaid. You can make small adjustments to limit the effect to those 50 and under and not gut the entire system. If the politicians can’t seem to come to an agreement I have the ultimate answer. Make all politicians pay for their own medical coverage on lousy medical plans like mine. Take that savings and we could certainly lower the deficit giving us more time to debate the solution. Seriously this is not a game. Certainly not one that should not be played out in these economic times. The politicians that are arguing with one another over party affiliation need to be held accountable. Grow up Washington. It is supposed to be “FOR THE PEOPLE, BY THE PEOPLE”. I think they forgot the “FOR THE PEOPLE” part.

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