Saturday, August 29, 2015 05:01am
North Adams, MA now: 46 °   
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
Adams & Cheshire School Bus Route 2015
Williams College Class of 2019 Set to Arrive Aug. 31
YMCA Accepting Registration for Elementary School-Age Programs
'Mile in Her Shoes Art Show' Seeks Participating Artists
Berkshire Bank Names MacDonald SVP Corporate Auto Sales Leader
Cultural Pittsfield This Week: Aug. 28-Sept. 3
Berkshire Opera Festival Appoints First Director of Development
Adams-Cheshire Makes High School Pitch to Lanesborough
Opened or Closed? Debate Over Kirvin Park's Gate Grows
North Adams Neighborhood Opposed to Bike Path Plan


Categories:
Archives:
Tags:
Farm Lee Economy North Adams Regional Hospital Cheese Farmers Budget Deficit Mountainone Fatal Csa Local Motor Vehicle Accident Oui
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


Live on the Lake: Madison...
Madison Avenue wrapped up the 2015 Live on the Lake concert...
Whitman's Wins Torchia League...
The Pat Torchia Women's Softball League playoffs concluded...
Berkshires Craft Beer Fest...
The 9th annual Western Mass beer festival drew hundreds of...
Pat Torchia Women's Softball...
Whitman's took the first game in the best two out of three...
Third Thursday August 2015
It was another beautiful night for 3rd Thursday on North...
Berkshire Chamber @ Darrow...
The Berkshire Chamber of Commerce held its monthly...
Shire City Sessions August...
Wild Adriatic performs at Monday's Shire City Sessions, a...
BYP Networking @WTF
The Berkshire Young Professionals held its networking event...
Softball: VFW Post vs Pizza...
VFW Post vs Pizza House at DiSanti field on Monday night.
Second Cheshire Block Party
Cheshire resident enjoyed good food and music by the...
Downtown Celebration 2015
The annual Downtown Celebration brought hundreds to Main...
Pittsfield Ethnic Fair
Pittsfield Ethnic Fair was held at the Pittsfield Common on...
Annual Cruz Nite And...
Cheshire residents enjoyed classic cars, good food, a BMX...
Adams National Night Out 2015
Adams recognized its first responders on Tuesday night...
National Night Out 2015
Neighborhoods in North Adams marked the annual National...
Adams Aggie Demo Derby 2015
Crash! Boom! Bang! The annual Aggie Fair demolition derby...
Live on the Lake: Madison...
Madison Avenue wrapped up the 2015 Live on the Lake concert...
Whitman's Wins Torchia League...
The Pat Torchia Women's Softball League playoffs concluded...
Berkshires Craft Beer Fest...
The 9th annual Western Mass beer festival drew hundreds of...
Pat Torchia Women's Softball...
Whitman's took the first game in the best two out of three...
Third Thursday August 2015
It was another beautiful night for 3rd Thursday on North...
| 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