Erskine Bowles and Alan Simpson were appointed co-chairs of a committee to examine the national debt and to make recommendations for solving that massive problem. The Commission has made its report. There are 67 pages of report and recommendations.
Not long ago on N.C. Public Television the Bowles and Simpson’s visit to Duke Univeristy was broadcast. The presentation is available on the internet now.
The message is a brutal message. It steps on all the toes. It has bi-partisan support. It is essential for the economic future of this country to adopt the recommendations as a package.
Here are the myths that are exposed: A. There is not, conservatives, enough fraud, waste, and “pork” in the national budget to solve the debt by eliminating the waste. B. There is not, liberals, enough extra in more taxes on the rich to solve the problems. Both political mantras are frauds.
The Debt has been created by a long list of factors: 10 years of wars that were never paid for by taxes. Economic bubbles like the housing bubble that were pushed by Barry Frank and Maxine Waters in the desire to make home ownership available to all people. That pressure on Fannie Mae and Freddie Mac opened a door for great greed and little responsibility in the financial markets. Spending bills and tax cuts that were not balanced.
There are four, according to the report, major dragons that must be destroyed:
1. Defense Spending. The US spends more on defense than the next 14 nations including Russia and China combined. There are bases around the world that need to be closed. There are weapon systems that are not need or operational. There are benefits to people who served in the National Guard who never were activated. We have to cut our military spending. The world wide presence of our military forces have not contributed to world peace as evidence by the hatred of the U.S. by many smaller nations. The Obama administration has been much more affective in international relations by being less aggressive and pompous.
2. Yes Republicans,you are right. There has to be a major overhaul of the tax code because our current system does handicap businesses, creates problems for corporations and permits too much slippage in the loop holes. Republicans are correct that business needs tax reform. A complete overhaul of the tax code would simplify economic development, encourage expansions, and generate as much or more income. There does have to be more income to solve this debt. The Democrats are correct on that.
3. The Debt must be reduced because the interest on the debt itself is one of the greatest burdens on the economy. Like the average citizens credit card debt, the amount of debt increase the interest costs and pretty the interest itself is a major problem. If we do not solve this problem, borrowing more and more money will become harder and harder and the interest on that money will be higher and higher.
4. The high cost of medical care in this country continues to be one of the greatest problems facing our society. Bowles stated that the 50 million citizens without health insurance get health care. They just get it in the emergency room and pay 5 or 6 times what it would have cost at the doctor. The cost of Social Security is going to have to be addressed. When Social Security was created the average life expectancy was 63 years old, which is why they made the age 65. Planning that not many people would reach the age to enroll. Now life expectancy is something like 78 years old and going up. There will have to be some changes in the age of enrollment, but those are made so that those who will be affected have plenty of warning. The Affordable Health Care Act was not enough.
This plan has been study and approved by economist on both sides of the political agenda. It is balanced. It is fair. It is a must first step, and they acknowledge that even these major steps may not be enough and more changes may have to be done. One can only look at Europe and the economic dangers in Ireland, Spain, Italy, and Greece to know we do not want to have those same problems here. The Bowles Simpson Commission report is a must do.
Rick Brand
Chair, Vance County Democratic Party
Mr. Brand has removed his other hat and is sounding very moderate and reserved this week. Now if he can only get President Obama to sign on to his own Commission’s plans instead of completely ignoring all their recomendations.
Well put Mr, Brand
Erskine Bowles is a smart man . I have a lot of faith in what he says.. His report was a waste of time because those ******* Democrats in Washington don’t listen to common sense. First thing quit sending money to other countries for anything . Nobody gives the good old USA nothing, when we need assistance for anything we have to beg. We need to keep, our money home, build a great defense system and tell the rest of the world to kiss our BUTT.
Erskine Bowles was the last person to balance a federal budget. His work left us with a surplus during the Clinton era. It only makes sense that he comes back to save us once more. No, I am not caling him a savior in a theological sense (we know there is only one of those) but he can help with the distribution of the tax payer dollars.
Mr. Brand wrote a really great article and he made some very nice points. I especially liked the dragon points of medical costs and the overhaul of the tax code. Every so often these programs need to be revamped and brought up to date to as our country evolves. Thank you for writing this article Rick and I do hope to meet you once day. Please keep your thoughts headed this way.