Thursday, October 02, 2014 12:34pm
North Adams, MA now: 63 °   
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
Adams, State Nearing Completion of Greylock Glen Lease
Pittsfield To Examine Privatizing Water Treatment
Clarksburg Planners Advise 'Stop Work' on Golf Course
Electric Rate Increase Tamed By Lenox's Group Purchasing
Cheshire Asks for Verizon Pole Cleanup, Hears Park Update
North Adams Vigil Celebrates Addiction Recovery, Mourns Loss
Longtime MCLA Staffer Degen Retiring
Does Your Plan Need A Makeover?
Girl Scouts to Host 'Geek Is Glam' STEM Expo
Williamstown Elementary Clothing Sale Benefits Classrooms


Categories:
Archives:
Tags:
Cheese Lee Fatal Csa Economy Motor Vehicle Accident Mountainone Farm Deficit Budget Oui North Adams Regional Hospital Farmers Local
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
Soccer: Pathfinder vs McCann
The McCann Tech boys soccer team defeated Pathfinder, 6-0,...
Golf: Taconic vs Drury
Taconic defeated Drury on Wednesday at Stamford Valley Golf...
Soccer:Taconic vs Lee
Lee won 6-2 over Taconic Tuesday afternoon. Submitting...
Soccer: Lenox vs Mount...
Dan Flynn scored both his goals after half-time to lead...
Girls Soccer: Wahconah vs...
Monday afternoon girls soccer game between Wahconah and...
Golf: Drury vs Pittsfield
Nick Boulger carded a 40 to lead the Drury High School golf...
Bike Night 2014
Motorcycles packed into the Visitor Center parking lot...
Girls Soccer: Pittsfield vs...
Trinity Cookis tallied three of Pittsfield’s seven goals...
Soccer: PHS vs Taconic
Pittsfield boys, top Taconic 5-0
Football: Smith Voc vs McCann...
McCann over Smith Voc. 53-0.
Soccer: St. Joe's vs Taconic
St. Joe 1, Taconic 1: 1st half: Tac - Ryan Abel (Colin...
McCann Tech Golf
The McCann Tech golf team dropped a 19-5 decision to...
Girls Soccer: Hoosac vs Mt....
Rand made two of her six saves in the last six minutes, and...
Berkshire Works Career Fair...
The annual Berkshire Works Career Fair connected hundreds...
Soccer: Mount Everett vs...
Bradley Lupiani scored twice to lead the Mount Everett boys...
Cross Country at Wahconah
Boys:Wahconah beat Hoosac Valley 28-31; Lenox beat Hoosac...
Soccer: Pathfinder vs McCann
The McCann Tech boys soccer team defeated Pathfinder, 6-0,...
Golf: Taconic vs Drury
Taconic defeated Drury on Wednesday at Stamford Valley Golf...
Soccer:Taconic vs Lee
Lee won 6-2 over Taconic Tuesday afternoon. Submitting...
Soccer: Lenox vs Mount...
Dan Flynn scored both his goals after half-time to lead...
Girls Soccer: Wahconah vs...
Monday afternoon girls soccer game between Wahconah and...
| 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