What were they thinking? Is that the question historians in the future will be asking about us?
We have a very serious debt crisis. Washington cannot agree on very much other than to go on recess. Standard & Poor's downgraded our credit rating. We borrow money from China and then give Chinese organizations foreign aid. It has been years since our government has had a budget in place, and yet we do little or nothing about it. Make room for us, Greece, Italy, Spain and Portugal. We are coming to join you.
There are very few thinking people who claim we can solely tax our way out of this mess. More seem to think it will require some revenue increases and spending cuts to make the situation better. We all know (but not all are ready to admit it) cuts in spending will have to come from the big three entitlement programs -- Medicaid, Medicare and Social Security.
What are we doing about it? Congress passed a two-month extension of payroll tax cuts that deprive Social Security of money.
Why? Some politicians think that by keeping a little extra cash in taxpayers' pockets for two months, it will help the economy create jobs. Then Congress went on recess for the holidays. The cuts didn't work in 2011. What's so special about January and February? Even if you extend it for the rest of 2012, why will it work now?
What are we thinking?
Hilton Head Island