Our goal is to begin paying down our deficit of 34 trillion dollars in our generation rather than passing the huge debt we have caused on to our grandchildren to pay. The first thing we need to look at is to eventually balance our federal budget which now adds to our deficit every year. Once we have a balanced budget, we can begin chipping away each year to our deficit. The second thing we need to look at is to stop printing money to pay our expenses and bail out troubled banks, corporations and rich people, an act that simply adds to our deficit and devalues our cash.
Economists tell us any cuts in government spending will remove liquidity and raise unemployment, 2 results that will work against our goal. We might take a page from our own history of paying the tremendous debt we incurred from fighting World War 2. Then we joyfully rolled up our sleeves and grew out of our debt crisis.
Since we are now adding 3-4 trillion dollars to our deficit each year, if we cut our federal budget expenses by 4 trillion dollars, we can balance our federal budget. Since that is a harsh and impractical budget decision given our international commitments as leader of the free world, our social commitments such as to Social Security, Medicare, Medicaid and the increasing natural disasters and wildfires we are experiencing each year that destroy people’s homes and lives. So, for the first year if we roll up our sleeves and trim our 2021-2022 federal budget to only add 2 trillion dollars to our projected expenses. For our 2022-23 budget if we will add only 1 trillion dollars to our projected expenses, and the following year, 2023-2024, balance our federal budget. Then we can start chipping away from our outstanding debt.
We still have to deal with unemployment and other important issues in order to grow out of our debt and show financial integrity to our Lord when He comes. More next week.