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Why A Balanced Budget Is Impossible In America

Submitted by Tyler Durden on 10/16/2012 13:20 -0400

If the US government cut all government services except Social Security, Medicare, Medicaid, and interest payments, federal spending would still outpace revenues. As we noted here, these four mandatory items dominate costs. All the arguing over sequestration and the fiscal cliff are moot since as Professor Antony Davis notes in this brief clip, there are no specific cust that will enable government to balance the budget; in fact "nothing less than a complete redesign will solve the problem." That redesign begins with determing the proper role of government.

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Tue, 10/16/2012 - 19:34 | 2896442 blunderdog

It seems like a fine idea, but the rich own the government. It'll never fly.

Tue, 10/16/2012 - 18:53 | 2896348 John Law Lives

I don't believe Congress has any intention of ever balancing the budget. I imagine they think good old Bernank (and whoever takes his place) will subsidize their reckless spending by maintaining a near-ZIRP and buying debt. On top of that, what elecected representative has the GUTS to stand in front of voters and claim he/she wants to slash entitlements and pork spending that affects those voters? Aside from someone like Ron Paul, I dont think there are too many people (if any) that would do that.

Bottom line = no balanced budgets... probably ever again... even after the R-E-S-E-T button gets pressed...

100% FUBAR.

Tue, 10/16/2012 - 19:27 | 2896418 spooz

Which includes universal health care and a redesign of our health care delivery system.

"That redesign begins with determing the proper role of government."

Tue, 10/16/2012 - 19:30 | 2896430 Grin Bagel

I am really beginning to question the gullibility of such die-hard contrairians as ZH'ers who glomp onto "Gold Bitches" but sooooo seldom do I see " Don't pay fuckin'interest" for money. I say there's a lot of collective heads that need to be extracted from attached asses, even among ZH'ers! Why so much focus on tha' "Ponzi" when the "Scam" of paying for our money when it could more easily be had for free is right in front of you, AND, the simple repudiation of that scam's debt is not the first battle cry! You have been diverted. Wake tha' fuck up!!!

Tue, 10/16/2012 - 20:04 | 2896493 blunderdog

Debt-free money doesn't solve any of the *fiscal* problems, though.

Tue, 10/16/2012 - 20:45 | 2896603 supra