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Fiscal Cliff: What Would Obama Do About It? 1. Pay The Entire Nation’s Debts On December 31, 2012, the United States will reach the breaking point. Without a debt ceiling increase, the country will default on its debt, as it is already broke. A year ago, it was reasonable to assume that the Obama administration was going to raise the debt ceiling. That has obviously not happened. Instead, we are headed for a default which will surely crash the economy. President Obama should first and foremost make sure that the nation’s sovereign debt is paid. If the country can’t pay its debts, then the United States government itself should be shut down. Instead of hoping that Congress will actually pass a bill, Obama should just put the nation’s finances on autopilot. 2. Pass A Balanced Budget Second, Obama should put the country on an austerity budget. The entire government should stop spending money. Those who argue that the government should spend money on programs that help people already miss the point. The government isn’t really spending money on these programs. It is just borrowing money from them. Cutting spending now will allow the government to reduce its debt. 3. Stop Writing Social Security and Medicare Checks Third, Obama should stop writing social security checks to retired people. When the government gives these people checks, the country is just using the money for loans. It isn’t really giving them money. The United States can’t be expected to honor its agreements. The Federal Reserve can always print more money and give it to the government. 4. Cut Government Spending Fourth, Obama should cut government spending. Once the country stops spending money on social programs, the government will quickly find that it doesn’t have enough money to do anything. The United States can’t be expected to honor its agreements. The Federal Reserve can always print more money and give it to the government. Instead, the government should shut down agencies like the EPA, Department of Education, and Department of Energy. The reason that these programs are spending money is that the government expects them to continue spending money. 5. Provide Uninsured Americans with a Public Option Fifth, Obama should provide uninsured Americans with a public option. Instead of forcing uninsured Americans to pay for private plans, the government should give them health insurance. The United States government could also give money directly to insurance companies.

 

 

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