Our federal government...

Here's some sobering information from a site that shares analysis on government revenue and debt.

US Federal Revenue

2008 Total: $2.524T ($1.45T Income Taxes)

2009 Total: $2.105T ($1.04T Income Taxes)

US Federal Yearly Deficit (more than 3x increase!)

2008 Total: $459B

2009 Total: $1.41T

Ok, so here's the point. There are some very hard times coming where we will have to make some difficult decisions as a nation. Not to be over-simplistic, but when the revenue falls, each of us as families must take a hard look at what we can cut out of our expenses to stop or slow "the bleeding".

For a time, we might have to take on additional debt to get past a season of reduced revenue. But, the government seems to avoid these "third rails" of politics and, as a result, we're passing them down to our children and their children.

Looking at the expenses, there are no easy answers. Assuming there are inefficiencies (probably not an assumption) in the expenses, even 10% savings wouldn't reduce the deficit of 2009 to below 2x the previous year's deficit. Pretending we weren't managing 2 military initiatives (aren't they still wars?) and bringing them to pre-9/11 levels would cut the defense spending (which includes veterans benefits, BTW) by half. Even so, that wouldn't bring the deficit down to 2008 levels.

So, what's the answer? I don't have one, but I treated this as my business, here would be my approach:

1) get the efficiencies back into the system. Not sure how possible this is given that we're talking about the federal government, but we must try.

2) stop sending tax dollars to the states and communities. Leave the revenue there and let them manage their (our) own communities. There will be exceptions when there is federal presence (US Parks, Federal agencies, etc.), but this should reduce the earmark issues we've been struggling with. And, this would reduce the nominal administrative overhead that comes from handling money.

3) adopt a policy of allowing failing businesses to fail completely IF there can't be proofs that the business will recover. For example, I'm glad the buggy whip businesses weren't bailed out when that industry began to decrease when the automobile began to be accepted more widely. There is still a market for a buggy whip, but it's a niche market at best.

4) reduce or eliminate incentives to outsource labor overseas.

5) in short, adopt whatever policies promote a healthy and growing GDP. If we can't reduce spending, maybe we can increase revenue. This implies that individual and business tax rates would decrease but that revenue would increase as more individuals and businesses have higher incomes.

6) lastly, adopt policies that reduce the frivolous litigation that's prevalent in the society.

What do you think? What else should our leaders do?

For the follower of Christ, I believe we need to have our eyes and ears open to know how to help and in the helping of others, lead them to Christ.

Therefore we do not lose heart. Though outwardly we are wasting away, yet inwardly we are being renewed day by day. For our light and momentary troubles are achieving for us an eternal glory that far outweighs them all. So we fix our eyes not on what is seen, but on what is unseen. For what is seen is temporary, but what is unseen is eternal. 2 Cor. 4:16-18