Budget Proposals 1

US NATIONAL DEBT

The US is over $14 trillion in debt, the S&P recently downgraded our credit rating outlook from stable to negative, and our Congress continually refuses to pass a budget, but has consistently raised the debt ceiling in the past. We need to stop kicking this metaphorical can down the road because (sooner rather than later) China and everyone else to whom we owe money is going to own that can, and that road, and there will be nothing left to kick but ourselves. How can we possibly explain to our future generations the reason for leaving the United States of America in worse shape than which it was given to us?

Representative Paul Ryan wrote a budget proposal called "Path to Prosperity." It passed the House, but unfortunately, the Democratic-controlled Senate voted against it in May. Even though it did not get past Congress, at least he was the first one to step up and do the dirty work of making the hard decisions on concrete spending cuts and detailed entitlement reformation. His budget does so in order to save our entitlement programs, take a chunk out of our debt, and put us on the path for economic growth.

The current budget negotiations are getting nowhere and they will probably talk right up to the deadline. I do not know about you, but anything that I have ever left until the last minute has not worked out too well. In those circumstances, it ends up being a half-assed, lesser version of what it could have and should have been. Either way, no matter what finally gets passed by Congress, the economy and the national debt will still be some of the main issues in the 2012 elections. This is why I wanted to post about it. The details of Ryan's budget make an excellent proposal and the American economy needs something like it.

SPENDING CUTS

First, let's acknowledge that Ryan's budget actually has $35 trillion of new spending, it is just less new spending than Obama's $49 trillion. I think this just illustrates how ludicrous the spending is from the current administration and Congress.

Representative Ryan is essentially taking the spending back to what it was four years ago, before Representative Nancy Pelosi and the Democrats took over Congress in 2007 and before President Obama took over the White House in 2009. (Side note: this is not to say that the Bush administration is not at fault as well; he passed TARP and allowed the national debt to reach $9.5 trillion by the time Obama took office.) However, the current administration and Congress have already increased it to just over $14 trillion-- that is almost $5 trillion in just two years! (That is half of what it took the country over 200 years to reach.)

Opponents argue that it cuts x percentage of y group and another z percentage of x group. This is part of the demagoguery of this budget because those numbers are being referenced to either A: increases in spending that Obama wants but will not happen with this budget (so I guess now "not increasing" = "cutting") or B: the current spending level that only increased recently under the outrageous spending frenzy of the (not-so) stimulus plan.

ENTITLEMENT REFORMATION

Since the poorest individuals rely the most on the government, it goes without saying that they would be hit the hardest in the case of a fiscal crisis. This is why it is imperative to repair our entitlement programs before they run out of money! I will not get into Medicare reformation because I already dedicated an entire post to the reforms proposed in "Path to Prosperity." But let's not forget: no legislation or proposal can be serious about deficit reduction unless they address Medicare and health care costs.

As for Ryan's budget proposal on Medicaid, opponents state that it cuts benefits for the low-income individuals in this program. That is simply not true. This budget strengthens Medicaid by converting it into a block grant system-- the same thing the government did with welfare in the late 1990s. The initial allocation of federal funds would be exactly as much as the states receive for Medicaid today, and it would grow every year to account for inflation and population. The advantage to the block grant system is allowing states more flexibility to tailor their programs and benefits to fit the specific needs of their low-income populations. This makes sense: low-income individuals in Texas or Florida have different health risks and needs than those in Chicago or New York, based on geography, demographics, weather, etc. So, this change allows states to be more efficient and less wasteful with the Medicaid money that is given to them.

TAX CUTS

Along with spending cuts and entitlement reforms, the budget addresses many other things like regulatory reform and federal reserve changes. It does so in order to reduce crony capitalism and decrease economic uncertainty. And finally, another major aspect of Ryan's proposal are tax cuts. That probably goes without saying, however, I am going to say something (a lot actually) in a post-to-come!

Rome

Italy's capital was our third stop of the Europe 2011 trip. It was my second time in Rome (wow, never thought I would be able to say that) and it was by far my favorite city this time around. Everything there is so OLD; at times it was hard to fathom that a building I was standing in was a thousand years old. And the food, the food! I ate more pizza and pasta in those three days than I have the past three years. It was all delizioso! Basically, you can see why Rome was my favorite: the history, the food, the wine... So, below (and above) are some photos of this incredible place.

We stayed at Hotel Diocleziano, where the top floor room has a terrace. It cannot be officially reserved, but you can request it shortly before your stay and hope it is open---well, we were lucky because it was available! Below are pics of it and the view. We also got a little surprise from room service because it was my sister's birthday the day we arrived.

The Colosseum: It was built from 72-80 AD and inaugurated with games that lasted 100 days, throughout which 5,000 animals were slaughtered. Yikes! Anyway, this elliptical amphitheatre rises up four stories and could seat about 50,000 people. The upper story was for the lower classes and women (surprise, surprise) while the lowest story was reserved for more prominent citizens. There were two special boxes with the best views in the house; naturally, the emperor sat there. These fans came to the Colosseum for a variety of shows, including: battle reenactments (it was possible to flood the arena floor for mock sea battles!), dramas, mock animal hunts, executions, and gladiator contests. The floor of the arena was made of wood with sand over it; the sand served two purposes: preventing the combatants from slipping and soaking up the blood. The floor is no longer there, so you can see the elaborate tunnels and cages underneath. Here is where the animals and gladiators were kept before the fight; intricate pulley systems could hoist up the cages through trap doors on the arena floor. It was pretty intense to stand inside something that has been around for almost 2,000 years and to know all the crazy activities that occurred there! Right next to the Colosseum is the Arch of Constantine, the Roman Forum, and other arches and ruins.

The Pantheon: This circular temple was completed in 27 BC and dedicated to all the pagan gods. The front portico has multiple columns that were all quarried in Egypt and brought to Rome. The cylindrical building has a diameter that equals the height of the dome; at more than 43 meter high, it is the world's largest unreinforced concrete dome. The Pantheon was converted into a Roman Catholic church in 609 AD, dedicated to "St. Mary and the Martyrs." It now contains the tombs of the famous artist Raphael and of several Italian kings. The bottom pics are Raphael's tomb and the statue, "Madonna del Sasso," under which it sits. (This was made by his pupil, Lorenzetto.)

Fontana di Trevi: The Trevi fountain is at the ending part of the Aqua Virgo, an aqueduct constructed in 19 BC. The central figure of the sculpture is Neptune, god of the sea; two sea horses pull his seashell chariot. One of the horses is calm and obedient, the other one resistive; this is supposed to symbolize the fluctuating moods of the sea. Legend says you will return to Rome if you throw a coin into the water.

Scalinata di Spagna: The Spanish Steps were built in the 18th century between the Piazza di Spagna and the French church, Trinita dei Monti. There are 138 steps and they make up the widest staircase in Europe. The bottom pics are my sister and I at the top (it is hard to see us) and the view from up there.

Castel Sant'Angelo: St. Angelo's Castle was initially built between 135-139 AD as a mausoleum for Roman Emperor Hadrian. Later, in 401 AD, it was converted into a fortress. Then, in 590 AD, Pope Gregory the Great led a procession through Rome asking God to end the plague. The procession ended at this fortress, where they say an angel appeared, sheathing his sword as a sign of the end of the plague. (This is how it obtained its current name; it was previously called the Mausoleum of Hadrian.) The bottom pics are of the Tiber River, along which the castle sits. Also are pics of the view from the top of the castle to the Vatican City. (Another post to come will be just on the Vatican; what an incredible place!)

Obelisks: Eleven of thirteen ancient obelisks in Rome are below. The majority were taken from Egypt after the Roman conquest.

Finally, along with all those ancient buildings and landmarks, Rome's food and wine were attractions of their own kind. My two favorite restaurants were Babbo's Ristorante and Trattoria Al Tettarello.

Arrivederci!