The thought occurs to me that the solution to our economic woes involves a form of reverse financial engineering. Suppose we dramatically DECREASE downstream entitlements and use the savings to invest in jobs today ? Wouldn't that simple notion make S and P happy , the Dems happy and the GOP happy ? We look at the projected 30 year national Pro Forma and cut it 20 %. Let's say that's $ 100 TRILLION. So we cut that by $ 20 TRILLION. Then , we take $ 10 TRILLION and invest it today in job creation programs like infrastructure. We still get a reduction of $ 10 TRILLION and a lot of new jobs, bridges, etc. Plus, part of the $ 20 TRILLION would be in reduced capital gains tax for businesses, new tax code with lower rates, repatriation tax holidays, etc. We reverse the budget game by standing the Time Value of Money on its ear. The 30 year savings can be easily found by extending SS age to 70, trimming war related defense costs, changing the retirement Index for SS, means tests, etc.
Seems to me, this is the kind of renaissance middle ground that could accelerate this countries economy and make S & P delirious
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