Monday, December 22, 2014 04:11am
North Adams, MA now: 28 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
SIGN IN | REGISTER NOW   

Home About Archives RSS Feed
AP-CNBC Poll: Cut federal services to balance the budget
By: Allen Jezouit, @BerkshireCountyBusiness On: 06:55AM / Tuesday November 30, 2010
Important
0
Interesting
0
Funny
0
Awesome
0
Infuriating
0
Ridiculous
0

According to a recent poll by the Associated Press and CNBC, Americans prefer cutting federal services to raising taxes by a 2-1 margin.

The poll "showed widespread anxiety about budget shortfalls exceeding $1 trillion a year." Hmmm. Go figure.

At the same time, the poll showed that "there is little consensus on specific, meaningful steps — and a wariness about touching two gargantuan programs, Social Security and Medicare."

The bottom line is this ... we can't keep borrowing a trillion dollars per year. At some point in time, the interest rates that people are going to demand to keep loaning us money are going to go up. We're becoming a bad credit risk. We simply have to cut spending - broadly and deeply - if we're going to survive as a nation. Our economy is only generating roughly 70% of the revenues the federal government needs to operate each year at current tax rates and current spending levels.

Look what is going on in Europe right now. Many Americans admire European style "democratic socialism" and aspire for America to be more like European nations. Guess what? It doesn't work. The spending eventually comes home to roost.

In this morning's news, the top financial stories are all about European nations on the brink of fiscal collapse. Greece received a 110 billion Euro ($145.7 billion) bailout back in the summer and yesterday they asked for and received an extension on their repayment out to 2021. Ireland received an 85 billion Euro ($111.7 billion) bailout on Sunday. According to reports, both Portugal and Spain are on the brink of requiring a bailout, too.  Other countries in the Euro zone have seen increased borrowing costs as a result, including Italy, France, and Belgium.

What makes things even scarier in this country is the fact that many states are operating deeply in the red. New York is facing a $9-$10 billion deficit in their 2011-2012 budget. California's deficit this year is $7.4 billion and their projected deficit for their next fiscal year is $19.3 billion. New Jersey faces a $2 billion deficit in their current fiscal year and a looming $11 billion deficit next year. Illinois is $13 billion in the red this year. Michigan is $1.6 billion in the red this year. Pennsylvania is $1 billion. Massachusetts deficit is over $2 billion this year.

The current spending levels simply are not sustainable. Many states are already staring down the barrel of severe austerity measures combined with sizable tax hikes. Guess what happens then? All growth stops while businesses and citizens flee, and tax revenues fall further. Some say, "vicious cycle" while others might say, "death spiral." Circling the bottom of the bowl is more like it.

We need to flush our old ways before our old ways flush us.



0 Comments
Tags: economy, deficit, budget      
News Headlines
Pittsfield Historical Commission Sets 2015 Priorities
Battalion Drops One-Goal Decision in Western Pa.
Pittsfield Weighs Construction Manager Model For New Taconic
Backstop Repairs Drain Last of Pittsfield's Bossidy Funds
Berkshire Battalion Loses Second Straight
McCann Students Lauded for Leadership & Skill Building
BU Looking For More Use of Tanglewood Campus
Battalion Falls at Danville
Berkshire County Arc Receives Workplace Wellness Grant
Cultural Pittsfield This Week:Dec. 19-Jan. 4


Categories:
Archives:
Tags:
Local Budget Fatal Motor Vehicle Accident Cheese North Adams Regional Hospital Mountainone Farm Lee Farmers Oui Deficit Csa Economy
Popular Entries:
Teen Pleads Not Guilty In Fatal Lee Accident
AP-CNBC Poll: Cut federal services to balance the budget
MountainOne Finds New President And CEO
Recent Entries:
MountainOne Finds New President And CEO
Teen Pleads Not Guilty In Fatal Lee Accident
AP-CNBC Poll: Cut federal services to balance the budget


View All
Girls BB: S Hadley vs Hoosac
Friday night girls BB game final - Hoosac 65 South Hadley...
Girls BB: Mount Greylock vs...
Greylock beats Wahconah 52-46
Hotel on North Construction
Media and local officials got a tour of the under...
Hockey: Wahconah vs Taconic
Andrew Beaudoin scored two goals and added an assist to...
Swimming: St. Joe s vs...
Emma Whitney and Jesse Tobin each won two events to lead...
Boys BB: St. Joe vs Drury
The annual Gene Wein Boys Basketball Holiday Tournament got...
Boys BB: Monument Mountain vs...
The annual Gene Wein Boys Basketball Holiday Tournament got...
Girls BB: St. Joe's vs McCann
McCann Tech girl's win over St. Joe's, Monday night at...
Cheshire Church Christmas...
Cheshire residents walked or traveled by hayride to...
Sen. Downing's Holiday Open...
State Sen. Benjamin B. Downing held his annual holiday open...
Crane Winter Wonderland 2014
Santa's Winter Wonderland at the Crane Mansion.
Boys BB: Chicopee Comp vs...
The Drury boys basketball team recorded its first "W" in...
McCann LPN Graduates 2014
McCann Technical School's Licensed Practical Nursing...
MCLA Honors Adams Scholars
MCLA recognized the achievement of high school seniors who...
Wahconah Falls in State Title...
Wahconah never did get those points in a 43-0 loss in the...
Pittsfield March for Justice
More than 200 Pittsfield and county residents marched on...
Girls BB: S Hadley vs Hoosac
Friday night girls BB game final - Hoosac 65 South Hadley...
Girls BB: Mount Greylock vs...
Greylock beats Wahconah 52-46
Hotel on North Construction
Media and local officials got a tour of the under...
Hockey: Wahconah vs Taconic
Andrew Beaudoin scored two goals and added an assist to...
Swimming: St. Joe s vs...
Emma Whitney and Jesse Tobin each won two events to lead...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings
Advertise | Recommend This Page | Help Contact Us | Privacy Policy| User Agreement
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2000 Boxcar Media LLC - All rights reserved