WEALTH OF NATIONS http://nationaljournal.com/crook.htm
America's Economy: More Fragile Than It Looks
By Clive Crook, National Journal© National Journal Group Inc.Friday, March 18, 2005
America's budget deficit is probably the single greatest destabilizer in the world economy at present. Reducing that deficit is America's responsibility -- and America would be the principal beneficiary of doing so.
A very good article which All interested in the Government Deficit woes should read. George W. Bush is not going to halve the Deficit by 2009, unless he cuts the current Y2005 Budget by Four percent. Year on Year growth equivalent to the Budget he sent to Congress will worsen the Deficit by more than 5%, if Congress refuses to alter Social Security. Financing Private Accounts for Social Security will worsen the Debt posture by at least 30%.
Someone Bush does read should tell him that foreign central Banks already shake as they contemplate their Dollar Reserves. Bush plans an 8% increase in Government spending, while Congress has already assured another 0.5% loss in Tax revenues, and plans more. It must be stated Government Spending must be cut, tax rate increases also stand as impractical. What can be done?
Proposed Agenda:
1) Social Security Issues should be tabled.
2) The Future Combat System should be canceled
3) American Strategic Policy should be altered to 'Equality with Foreign Military Complements', bringing the purported Arms Race to an end as China alone has the assets to continue it. This ability will evaporate within Two years, as China's social-economic problems dominate.
4) All Weapons development should be brought to an end, unless it immediately assists Troops in the field, or is within Two years of online Production.
5) Tax Reform should be the Priority of Congress--this effort to flatten Tax rates in combination with elimination of Tax loopholes. lgl
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