From: gross@eric10.rtp.dg.com (Gene Gross)
Subject: Re: Fiscal Responsibility
Date: Wed, 2 Sep 92 20:46:00 GMT
Organization: Data General Corporation, RTP, NC.

In article <1992Aug31.051328.7599@ncar.ucar.edu> gary@isis.cgd.ucar.edu (Gary Strand) writes:
>gg> Gene Gross
>gs> Gary Strand
>
>gs> I have yet to come across a program that couldn't do the same functions 
>gs> for 5% less.
>
>gg> How about cutting all programs, on and off budget, by 40 percent and
>gg> increasing the income tax to 50 percent!?
>
>  Uhh, let's try something that's part of planet Earth first, OK? Is the ob-
>  ject getting rid of the debt, or wiping out the economy (and a goodly chunk
>  of the global economy as well)?

Considering that currently it takes all of the taxpayers money from
taxpayers west of the Mississippi just to cover the interest payments on
the national debt right now, how is it that things aren't that bad!?
The only way to keep it from ending in collapse is to take drastic
measures now.

The national debt (based on the On Budget items) is over $4 trillion
dollars and growing at the rate of nearly a billion dollars a day.
Neither the Presidents nor the various Congresses have done anything to
pay off the debt we've incurred.  When the amount of On Budget debt
reaches $12 trillion (a very conservative estimate of the amount owed by
2000), there will simply not be enough money coming in to the national
treasury to pay even the interest payments and pay for all the wonderful
government services we have come to depend upon.

It is at that point in time that our government will either default or
monetize the debt.  They know full well that Americans today have
neither the will nor the courage, generally speaking, to face up to the
harsh truths of our economic condition and pay the price now.  The price
later will be far worse, but try convincing people of that.

Gotta have those welfare programs, those latest defense gizmos, that
national health program, increased funding for everything!!!  And pray
tell, where in the world is the money going to come from for all of
it!!??

So, Gary, tell me it isn't that bad.  I have reviewed the government's
own figures from GAO and OMB.  Funny how the facts are right out there
for all to see -- just have to do a little research.  Then I checked
reports from a number of think tanks, conservative and liberal (gotta
keep some balance on things).  I simply took the best case scenarios.
Would you like me to tell you what the worst case was -- try 1996!!  And
it didn't make any difference who got the White House nor who controls
Congress.  The debt has a life all its own.  It continues to grow and
grow.  Even if we never borrowed another red cent for government
spending, the debt would still grow because of compound interest (the
8th wonder of the world!).

Actually, slashing spending by 40 percent and increasing everyone's
income taxes to 50 percent won't help all that much.  It will keep the
wolves away from the door for only a little while.  We simply must
determine to start paying off the debt.  The Congress must end its
creative bookkeeping, and both the Executive and the Legislative
branches must quit spending more than they take in in taxation.  Current
spending levels must be stopped.  All budgets must be zero-based.  And a
very specific plan for paying off the debt must be part of any new
budget passed.

We know that won't happen.  So, prepare for some serious hyperinflation
by the turn of the century (less than 8 short years from now).  That is
not merely a prediction, it is inevitable.

Regards,

Gene Gross

Xref: sparky talk.politics.misc:43061 ca.politics:7295