Saturday, June 29, 2024

Big picture: time to reduce deficits

Singh

Not sure if anyone has noticed, but the media has played up Wisconsin as if it were of epic importance. MSNBC would have us believe it is indicative of the Republicans’ secret — but now public — plan to strip all workers of their rights.

Fox News anchors ran multiple stories bashing unions, but most normal people were focused on how it was possible for Fox to be even angrier than normal.

Most of this is irrelevant.

There is nothing monumental about the events in Wisconsin. Wisconsin has a budget deficit like most states in our country. Wisconsin has unintelligible rhetoric from both sides, just like the U.S.

Madison, Wis., is full of uncompromising politicians who play up people’s fears, just like Washington, D.C.

This is all old news. Wisconsin’s problems are America’s problems. So instead of focusing on what can make a story seem epic, I think it is far more constructive to discuss the broader budget shortfalls across state governments and the federal government.

Americans have lost perspective that governments on all levels are broke.

For 30 years, politicians have lied to the public about what programs the government really can afford to administer. And if we do not make permanent structural changes right now, we could have a sovereign debt crisis similar to Europe’s.

Regardless of what the media will tell you, this can’t be a partisan debate. It should be about math. Fortunately, we have a few leaders across the country who understand this.

New Jersey Gov. Chris Christie has called out public union abuses in his state while courageously cutting programs his state cannot afford.

Think what you will of his unapologetic tone and conservatism, but he balanced his state’s budget after inheriting arguably the worst fiscal situation of any state in the country.

New York Gov. Andrew Cuomo — the son of a liberal icon — is singing the same song of austerity. In a New York Post opinion editorial, he pointed out the need to reform and cut New York’s state budget.

He said that as much as he would like to increase education spending 13 percent every year, it’s just not practical in an economy growing at less than 3 percent.

And yes, Wisconsin Gov. Scott Walker is in the same boat. I know far too little about Wisconsin politics or its fiscal balance sheet to make an accurate judgment about his proposal.

I am far too busy studying for my International Public Law class to contemplate if throwing out collective bargaining for public union pensions is the best solution for Wisconsin’s deficit.

All I can say with certainty is our country faces a fiscal nightmare unlike any other we have seen. It is my judgment that we should concentrate on the big picture of reducing the deficit rather than specific squabbles in one state’s politics.

If you dig deep enough into big issues, I believe bipartisan approaches that will put each state and the country as a whole back on stronger fiscal footing exist. An easy example, believe it or not, is tax reform.

We currently lose $1 trillion every year in loopholes and exemptions written into the tax code. There’s no reason why both parties can’t agree to a flatter, fairer tax code.

That not only would produce more revenue for the government, but it would incentivize business to be productive instead of shuffling money around until it simply is no longer taxed.

From education reform to energy, there are enough common sense ideas to boost our economic growth and pay off some of our looming deficit.

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But we’ll need Republicans such as Christie and Democrats such as Cuomo who understand governing requires telling people what they haven’t been told in a really long time.

When it comes to the federal deficit, U.S. Sen. Tom Coburn, R-Okla., said it best when he was asked if Congress will address the problem: He forcefully told reporters we do not have a choice.

He explains a solution either will be made in the comfort of current interest rates or in hasty response to a bond market crisis similar to that of Greece.

Let’s work for the former so we do not have to even think of the latter.

Ameek Singh is a State News guest columnist and an international relations junior. Reach him at sodhiame@msu.edu.

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