Mitchell Nemeth writes for the Foundation for Economic Education (FEE) and gives readers some facts regarding our national debt. Warren Buffett responds by telling CNBC he could end deficit-spending in five minutes.
Nemeth writes: “If there is any takeaway from these unsuccessful attempts to reduce spending, it is that federal spending has subsidized numerous projects or programs, which have grown dependent on the federal government. There may be many good uses of federal funds, but this does not provide lawmakers with a “Get-out-of-jail-free card.
“For now, lawmakers continue to spend as if they are children in a candy store with no limit on their parents’ credit card. At some point, lawmakers must address the underlying problem: Federal spending.
“Lawmakers are representatives for their constituents. This goes without saying, but lawmakers are unlikely to address the ever-increasing national debt until voters demand action. What remains unfathomable to many voters is how much money $22.5 Trillion truly is.
“As Jon Miltimore has written, ‘the problem is that the human mind has trouble understanding a figure so huge.’ Below are some facts that help put into perspective just how large is the sum of $22.5 Trillion:
“In order to pay down our national debt you would have to combine the GDP of China, Japan, and India.
“The United States owes $68,400 per citizen.
“The United States owes $183,000 per taxpayer.
“The United States currently has $125 Trillion (yes, Trillion) in unfunded liabilities.
“According to the nonpartisan Congressional Budget Office (CBO), the U.S. debt held by the public will reach 100% of GDP in 2028.
“In order to pay down our national debt you would have to combine the GDP of China, Japan, and India,” Nemeth wrote.
“Warren Buffett, ‘I could end the deficit in five minutes,’ he told CNBC. ‘You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election. The 26th Amendment (granting the right to vote for 18 year-olds) took only three months and eight days to be ratified! Why? Simple! The people demanded it. That was in 1971…before computers, E-mail, cell phones. Of the 27 amendments to the Constitution, seven took one year or less to become the law of the land…all because of public pressure.’
“Congressional Reform Act of 2019 proposal:
“• No Tenure / No Pension. A congressman/woman collects a salary while in office and receives no pay when they are out of office.
“• Congress (past, present, and future) participates in Social Security. All funds in the congressional retirement fund move to the Social Security system immediately. All future funds flow into the Social Security system, and Congress participates with the American people. It may not be used for any other purpose.
“• Congress can purchase its own retirement plan, just as all Americans do.
“• Congress members will no longer vote themselves a pay raise. Congressional pay will rise by the lower of CPI or 3%.
“• Congress loses its current health care system and participates in the same health care system as the American people.
“• Congress must equally abide by all laws they impose on the American people.
“• All contracts with past and present Congressmen are void effective 7/1/19. The American people did not make this contract with congressmen. Congressmen made all these contracts for themselves. Serving in Congress is an honor, not a career. The Founding Fathers envisioned citizen legislators, so ours should serve their terms, then go home and back to work,” Buffett wrote.
Mitchell Nemeth holds a Master in the Study of Law from the University of Georgia School of Law. He holds a BBA in Finance from the University of Georgia. His work has been featured at The Arch Conservative, Merion West, and The Red & Black. Mitchell founded the Young Americans for Liberty chapter at the University of Georgia, and he served as co-president of Students Supporting Israel at UGA. His favorite writers are professor Jonathan Haidt and Thomas Sowell.