It’s not really rocket science.
- If you have loans outstanding and the payment is due, you owe the creditors a payment. Payables for Idiots 101.
- If you have received goods and services, then you owe your vendors a payment. Payables for Idiots 102.
- You pay your bills. End of story. That’s what grown ups do. If you have to float some debt for a few months, you do it. And you staple a note to your head to stop spending like a slot machine junkie. Payables for Idiots 103.
The debts we have are for goods and services we’ve already received. So increase the debt limit and pay your damn bills. What about spending?
- You do not spend more than you take in year after year. If you do, that’s called running your business into the ground. In the case of the Congress (primarily Harry Reid’s Senate at this point, although many, but not all, of the Republicans were happy to go along with dumb spending earlier) and the President, it’s the country they’re running into the ground. Spending for Idiots 101.
- If you’ve got all sorts of cool things planned like Acorn subsidies for pimps and Antarctica Jell-O wrestling grants for scientists, but you can’t afford them—i.e. you have to go into debt to get them–you cancel those plans. Spending for Idiots 102.
- The problem is that Congress and the President buy all sorts of crap and expect to put it on a credit card when it comes due. And there’s nothing to prevent them from doing it.
- They’re like irresponsible teenagers. They need controls that won’t allow them to overspend. Kind of like putting limits on a teenager’s cell phone minutes. Or forcing them to use a debit card. When they’re out of cash, they get a card denied response from their vendors.
- So you set spending limits, debt limits, and force them to balance the budget each year, except in extreme emergencies like when space aliens try to wipe out humanity. Spending for Idiots 103.
This means you pass Cut, Cap, and Balance and quit spending money you don’t have. Really difficult stuff. What about getting out of debt?
- You eat rice and beans until you’re debt is gone or down to a manageable level. That means you cancel crap you can’t pay for. Sorry earmarks, you’re gone. Sorry grants for nude artists in trees, you’re gone. Sorry subsidies for PBS, you’re gone. Finances 200: How to Not Be A Money Moron.
- You figure out how to reduce your current cost structure. This means you figure out a way to reduce the costs of Medicare, Medicaid, Social Security, and every other service or product you provide, cutting those that aren’t essential. You hire someone like Mitt Romney who knows how to go through every line in a budget and turn a bloated ship around. Finances 300: No, You Can’t Pay For Your Sister’s Hair Implants with My Money.
- You remind people this is the freaking U S of A. A place where a man or woman can make themselves. Not where the government changes your diapers and feeds you mush three times a day. Communism and socialism have failed. They were badly conceived utopias, much like multi-level soap and vitamin marketing schemes that are supposed to usher in the Second Coming. Finances 400: The USA Buried the USSR for a Reason.
- You increase your revenues.
- However, if you raise taxes, you’re actually going to depress your revenues. Think about this. Which car company has bigger revenues–Lamborgini or Honda? Who is going to put out, if they’ve got Louie the Fingers and his buddy Jockstrap taking increasing amounts of their money in a protection racket? Don’t be a thug. Be an enabler. Do what Wal-Mart does and go for volume. Do what Ebay does–create the environment that entices tons of commerce, entices people to dramatically increase their transactions. Transactions go through the roof; you take only a tiny cut, and, shazam, you increase your revenues. Finances 500: Um, Do You Want People to Work to Become Rich or Do You Want Them To Pick Up Torches and Burn the Houses of the Rich Down?
Cut spending, reduce cost structure, and increase your revenues. That’s getting out of debt.
Is this really that hard?
EDIT: 8/1 Seems that “wacky” Ron Paul actually has a simple commonsense approach that doesn’t sound crazy. Why couldn’t we do this?