My previous blog covered spending cuts from my FBN show (airs Saturday @ 9pm & midnight ET) that would balance the budget. There's a lot that I left out. We could eliminate the Commerce Department, end federal guarantees for Fannie and Freddie, end federal flood insurance, legalize gambling, etc. Readers made other suggestions. If politicians had guts, we’d balance the budget right now.
But few are willing to anger the interest groups.
Cato’s Daniel J. Mitchell points out that if the politicians showed just a little courage, we could balance the budget. They don’t have to cut as much as we did because there’s no need to get to surplus in one year. Smaller cuts would balance the budget in ten years.
The spenders don’t even have to cut overall federal spending. All the piggies have to do is: stop spending more!
If they freeze the budget, we almost balance the budget by 2017. If federal spending is capped so it grows 1 percent each year, the budget is balanced in 2019. And if the crowd in Washington can limit spending growth to about 2 percent each year, red ink almost disappears in just 10 years.