Republicans obviously suffered a loss on Tuesday, Nov. 6. As a former delegate candidate to the Republican National Convention, I was pulling strongly for Gov. Romney and was on the edge of my seat the whole night.
Campaigns are a rough ordeal that candidates, staffers, the media, and citizens must periodically endure.
President Obama was given a mandate to lead this country for the next four years. However, given the distribution of power, it is possible for either party to cause more years of gridlock. This is not good for America.
We are facing foreign threats on multiple levels, but of arguably more importance is the massive issue we face domestically. This is the "fiscal cliff" and we must not go over the edge.
This cliff is directly related to our national federal debt, which currently stands at $16 trillion.
We currently finance this debt through borrowing, but increased debt brings with it increased interest payments, reduced national savings, and the increased likelihood of a Greek-style fiscal crisis. Obviously, this debt poses a massive threat.
However, in reality, there is not one "cliff" that must be avoided, but rather two. The first one is the long-run consequence of massive federal debt. The second is the sharp economic contraction that will occur if tax increases and spending cuts occur too quickly.
Every day the debt is allowed to grow adds depth to our grave. Eventually, we won't be able to climb out. However, if we stop spending so quickly, we could see another recession within a year's time according to the Congressional Budget Office.
So perhaps we should not be talking about this as a cliff, but rather a sinking ship in shark-infested waters. We can either stay with the ship until it goes down, pretending that life is good, or we can jump off and try to swim for it while we have a chance. Both are fraught with risk, and neither is politically popular.
But perhaps there is a middle road. If there was a way to reduce the deficit and debt, but ensure that it would not occur too quickly, then perhaps we could find a lifeboat instead of having to swim.
This middle road must be found through a grand compromise. Of course, this compromise must include certain features, including discretionary spending cuts, mandatory spending restructuring and revenue increases.
We must cut our addiction spending. Pork barrel spending must be eliminated, but that alone won't come close to balancing the budget. Defense spending must be smarter so that we can continue to be a global force at the most economical price tag, but again, that won't balance the budget. We must go after the big spenders: the so-called "entitlement" programs.
Social programs like Medicare, Medicaid and Social Security are like three 700 lb. gorillas in the room. By 2045, 100 percent of tax revenues will go to these three programs. If we don't make significant changes, they won't be there in the future. I am not advocating for the elimination of these programs, but for their solvency.
We need to increase the retirement age for Social Security and link those payments to past earnings. We need to repeal the individual health insurance mandate and restructure the way Medicare is paid in order to introduce market forces into the system. If we want these programs to exist a decade from now, we must make changes to them.
We also need to increase revenues by broadening the tax base. Some want to raise rates, but this is a misguided approach. We could raise rates to one hundred percent, but we would then collect no more revenue than with a zero percent rate since increased tax rates reduce the incentive to work and would put us into a recession.
According to the CBO, if we fail to renew the Bush-era tax cuts, we will face a recession in a year's time. But, if we don't ensure that the government is getting its full revenue by closing loopholes and simplifying the code, the spending cuts will be much worse.
America must walk a difficult path. According to the CBO, if we don't have a balanced budget by 2020, we inevitably reach a crisis. But, if we make a snap decision, the economy will suffer even more than it has in the past four years.
Given the size of the problem we currently face, now is not the time for partisan gridlock from either party. The task of governance is too huge--and the risk too large--to allow that to happen. If our elected officials can't act like adults and work to get something done, then our nation will suffer. The rhetoric coming from the White House and the House of Representatives in recent days has been encouraging, but all parties must act on that rhetoric with good faith and honest efforts.
I am confident that we can fix the mess we have created. It won't be fun for anyone, Democrat or Republican, but a bankrupt nation and stalled economy is a whole lot less fun.
We need to move away from the conditions of the last four years. President Obama, you were tasked with leading this change, so take us forward.
Caleb Wolanek
Junior
Political Science
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