How I’d fix the National Debt

Posted by MoneyThinker in Current Events | 1 comment

So, we’ve come to a compromise. Or, well, we’ve done what we’ve done the last 78 times this kind of event has occurred, which is just raise the ceiling and continue to kill the dollar. I mentioned yesterday that I think our national debt is just proof of an issue we have all over the U.S.: Debt! It’s the reason we’re in the mess we are individually, and it’s shining through as we look at the mess nationally too.

Now, politically, I consider myself independent. If you haven’t seen it in other things I’ve said on here, I lean toward Libertarian/Constitutionalist views. Basically, I feel like we’ve strayed from the one thing that we built our country on (the Constitution), and that we should look back to it in order to best  legislation.

Keep that in mind as I share these thoughts; they’re probably quite Constitutionalist in nature, and I get that. You’ll probably disagree that this is the right way to do things, and I totally am cool with that.  Now that I’m done with the abnormally long disclaimer, let’s look at what I think needs to be done to fix the national debt and prevent a possible debt ceiling disaster.

1. Make a distinction between which programs should be state funded and which should be federally funded. As any true Constitutionalist, this is first on my list. Why? Because I think the federal government has taken too much under its wings that shouldn’t be. Yes, I live in PA, where we are in big trouble financially (they cut funding for the state schools drastically this year). I think making this distinction would lessen this burden, because it would also allow states to tax more and the federal government to tax less.
2. Require anyone (pre-retirement) who is under any sort of welfare to work with a professional in order to secure a budget. This, I think, is incredibly important. First, it provides jobs. Who doesn’t want to do that? You can train anyone to make a proper budget. Second, it provides accountability and guidance for people who are in bad financial situations. I say pre-retirement, only because it may get out of hand if we included retirees. Could we? Possibly, but I wouldn’t want to make it a requirement.
3. Make Social Security retirees only and begin a separate, state funded program for other needs. This I mentioned the other day in my blog about Social Security. I really think that it would be beneficial to make Social Security its own thing, especially for retirees, and then make separate programs for disability and minors who have lost a parent.
4. Evaluate spending bills, especially on the necessity of riders. Pork barrel spending is probably one of the biggest reasons that we struggle in our economy. Too many Congressmen and Senators focus on their own constituents instead of what is best for the country as a whole. If we can refocus, which I know is difficult, we’d be able to waste less money on pet projects and help get out of national debt. Or at least start to.

There are more things that can, and should, be done. But these four things would at least start to reduce the debt that has been plaguing our country for years. Any thoughts? Share them in the comments. Until then, spend smart, save smart!