Saturday, July 04, 2015 04:48pm
North Adams, MA now: 66 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
LOG 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

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
Fourth of July: The Declaration of Independence
Holiday Hours: Independence Day
Fourth of July Festivities Include Parades, Fireworks
Pittsfield 15s Impressive in Babe Ruth District Opener
Economic Development Commission Will 'Roll Out Slowly'
North Adams Youngster To Throw Out Friday's First Pitch at Fenway
Bianchi Accepts Road Race Challenge; Teams Announced
Bird, Blue Devils Earn Win in Giorgi League
North Adams 13s Battle on Difficult Night in Babe Ruth Play
North Adams 15s Win Babe Ruth District Opener


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


Solid Sound Day Three
Solid Sound concluded Sunday with performances from the...
Solid Sound Day Two
Saturday's performances at Solid Sound included NRBQ,...
Solid Sound Day One
Solid Sound gates opened at 4:30 and concert goers enjoyed...
Colegrove Park School Tour
School and city officials toured the far-from-completion...
Down Street Art 2015 Kickoff
Down Street Art kicked off Thursday night with music, food,...
High School Softball All-Star...
High school softball players from throughout the county...
Bashevkin Farewell Party
Nearly 100 staff, friends, family and partners of the...
Little League Championship...
Hunter Sarkis and Logan Briggs Tuesday evening singled...
Candlelight Vigil for S.C....
More than 300 residents gathered at United Methodist Church...
Central/South Relay for Life...
Hundreds spent Friday night and Saturday morning walking...
'Amazing' Book Launch Party
Hundreds turned out for the release of Ty Allan Jackson's...
Third Thursday June 2015
Third Thursday in Pittsfield brought thousands to North...
Bruins Rally At Cheshire...
The Boston Bruins held a rally for Cheshire Elementary...
Pittsfield High Graduation...
Pittsfield High School held its graduation on Sunday at...
Taconic High Graduation 2015
Taconic High School held its graduation exercises on...
Lenox High Graduation 2015
Lenox Memorial High School presented diplomas to 64...
Solid Sound Day Three
Solid Sound concluded Sunday with performances from the...
Solid Sound Day Two
Saturday's performances at Solid Sound included NRBQ,...
Solid Sound Day One
Solid Sound gates opened at 4:30 and concert goers enjoyed...
Colegrove Park School Tour
School and city officials toured the far-from-completion...
Down Street Art 2015 Kickoff
Down Street Art kicked off Thursday night with music, food,...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings |
Advertise | Recommend This Page | Help Contact Us
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2012 Boxcar Media LLC - All rights reserved

Privacy Policy| User Agreement