I'm satisfied that this country is not “broke.” The wealth of this country cannot be measured either by our national budget nor the sum of all our State budgets. We have natural resources, in the ground that are worth many times more that our national debt measured in trillions.
However, we cannot balance our annual national budget without sufficient revenue. And today most of our revenue comes through income tax payments. Perhaps there's a superior tax to this Wilsonian idea of taxation. Perhaps the consumption tax is better. But we need a tax that produces revenue.
Payment on the national debt requires a budget surplus. If we can't get a balanced budget we can't get a surplus. I think that the only way that we can get sufficient money to pay toward the debt is by drawing from the revenue benefits within our own natural resources.
We may have to pay for those resources over decades.
But we can keep the whole capitalistic system in tack even regarding those resources if we were to begin buying stock in those firms as anyone or a corporation would, up to about 75% of their present ownership. Eventually the government would be 75% in control and receive 75% of the profits.
Some of that return should then go directly to pay down the debt over the years and some to upgrade our infrastructure. I can't think of any other way, today, given our political situation, that we can begin affecting the debt. Americans are not going to stand for a very serious modification of our safety net.
Acquisition of our energy resources is going to be considered “socialist “so that would be a tough nut to crack. But it's a solution, if we wanted to move in that direction. So as long as there's a solution, we're not “broke.” If there is no willingness to accept that solution, then we need to consider a better one.
The handling of our debt requires more than a mere balancing of the budget. It requires a surplus of revenue for many years to come and I can't see anyway that we can achieve that without finding another source or revenue in addition to taxes. It seems that our natural resources are the only place to look. Those are common assets.
U.S. Representative Paul Ryan is not going to do it by trying to eliminate Social Security and Medicare. (More later on his plan).
I'd like to hear of a better idea than I've presented to enhance revenue. At least, I'm no longer stressed over the notion of going “broke.” There are solutions. But there are also political ideologies for not considering them. And if we're “broke,” it is only under those political rules.