when is the US going to issue its own austerity plan?

[BlahBlahYouToo]

this article is about greece but i feel the same could apply to state workers here in the US.
i bolded some key points, regarding pay and pension.

Greece requested its first round of international funding on Tuesday. Now comes the really hard part: The Greeks will have to tighten their belts to bring the nation's finances in line.

The measures are designed to rein in a country that has been living beyond its means.

"These are very, very serious and very, very rapid cuts," said Mitchell Orenstein, professor of European studies at Johns Hopkins University.

The austerity measures fall heavily on public workers, who will receive pay cuts and have to postpone retirement until later in life, and pensioners, who will have their pensions reduced.

"The current pension system is unsustainable and will become insolvent if responsible measures are not taken to place it on a sound footing," read an IMF document detailing the austerity measures.

Here are some of the details agreed upon by the Greek government, which hopes to reduce its annual deficit to 8.1% of its gross domestic product this year, compared to 13.6% in 2009:

Salaries: Wages will be cut to save the government € 1.1 billion in 2010. A spokeswoman for the Greek Finance Ministry declined to provide a flat percentage, because the cuts will vary depending on a worker's salary. Two rounds of wage cuts have already occurred this year.

Retirement: Pensions will also be cut, except for those in the lowest income bracket. The retirement age will be set at 65. This is quite a contrast from the current system, which allows some workers to retire at 61. The government will toughen eligibility for disability, and for any other type of early retirement.

 

[Ronstang]

At least you are smart enough to realize it is a when rather than an if, others around here are blind as a bat.

 

[Slew Foot]

As long as the Dems are in control, the only austerity plan is going to be for the private sector.

 

[Dissipate]

As long as the Dems are in control, the only austerity plan is going to be for the private sector.

Are you really so narrow minded to think that this is simply a problem created by the 'Dems?' Republicans have been racking up deficits for decades as well.

 

[Fear No Evil]

Are you really so narrow minded to think that this is simply a problem created by the 'Dems?' Republicans have been racking up deficits for decades as well.

Except Obama is making those deficits look like responsible spending.

 

[Dissipate]

Except Obama is making those deficits look like responsible spending.

How is he different from any president in the past 150 years? Every president has been all about war, welfare and or a combination of both.

 

[Jhhnn]

Except Obama is making those deficits look like responsible spending.

Reagan quadrupled the national debt during his term in office, something I doubt Obama will even begin to equal... And he did with enormous peacetime military spending and taxcuts for America's wealthiest. GHWB did much the same, but actually waged war to save the rulers of Kuwait from exile in some horrible place like Monaco... And GWB? the numbers speak for themselves... The only Admin to show fiscal restraint since Carter was that of Clinton, who reduced debt acquistion to nearly nothing...

Austerity? I'm sure the rest of America will pitch in, once it can be demonstrated that America's wealthiest are making some sacrifices of their own...

 

[JS80]

How is he different from any president in the past 150 years? Every president has been all about war, welfare and or a combination of both.

But it's OK when a dem does it? lol.

 

[Fear No Evil]

Reagan quadrupled the national debt during his term in office, something I doubt Obama will even begin to equal... And he did with enormous peacetime military spending and taxcuts for America's wealthiest. GHWB did much the same, but actually waged war to save the rulers of Kuwait from exile in some horrible place like Monaco... And GWB? the numbers speak for themselves... The only Admin to show fiscal restraint since Carter was that of Clinton, who reduced debt acquistion to nearly nothing...

Austerity? I'm sure the rest of America will pitch in, once it can be demonstrated that America's wealthiest are making some sacrifices of their own...

Except that Obama will SPEND in ONE YEAR what the debt was under Reagan of all the previous President's in the history of this country. But yes, thats fine because its 'change'.

 

[heyheybooboo]

Except that Obama will SPEND in ONE YEAR what the debt was under Reagan of all the previous President's in the history of this country. But yes, thats fine because its 'change'.

Not even close.

The statutory debt limit increased more than 300% in the Raygun years from around $900 billion to nearly $2.9 trillion.

Nice sock-puppet trolling, though ...




--

 

[nonlnear]

I resent fiscal responsibility being called austerity. I prefer to think of profligate spending as austerity measures for the grandchildren.

 

[dmcowen674]

As long as the Dems are in control, the only austerity plan is going to be for the private sector.

How bout 8 years under Bush rule. No call for Austerity there.

You can call for Austerity when you get a Republican back in as President.

I know there is no way that you or any other Republican will call for Austerity then either.

 

[PokerGuy]

Unlike Greece, the US has printing presses that can print out more Obamabucks as needed. The government sector can continue to increase unabated while the private sector shrinks.

 

[Rebel44]

Unlike Greece, the US has printing presses that can print out more Obamabucks as needed. The government sector can continue to increase unabated while the private sector shrinks.

If USA print too much money USD will be worth less and after that investors will demand much higher % for funding future deficits to compensate risks of inflation.

 

[Fear No Evil]

Not even close.

The statutory debt limit increased more than 300% in the Raygun years from around $900 billion to nearly $2.9 trillion.

Nice sock-puppet trolling, though ...




--

Obama is spending ~$3.5 trillion this year. What I meant to say is he is spending more in 1 year than the combined debt of all the Presidents from Reagan and before. Percentages mean nothing. AMOUNT does. Obama is almost adding as much to the national debt in 1 year as Reagan did in 8. I'm willing to bet the amount of $$$ brought in by Reagan during that time also increased massively without tax increases. Think thats going to happen under Obama?

But its OK because Obama will probably only make the debt go to 20 trillion before he leaves which is only ~200% increase. I guess in a way he is actually cutting the debt then.

 

[sandorski]

Clinton/Gore had laid the groundwork to fix the US's problems. Then something happened.

 

[Jaskalas]

If USA print too much money USD will be worth less and after that investors will demand much higher % for funding future deficits to compensate risks of inflation.

This is our path I guarantee it.

Austerity, as Dave so correctly stated, will be passed by neither party. The people will suffer one inflationary bailout after another and in the end will turn to violence to remedy their hunger once our bubble of fake wealth bursts.

We are not unlike the Greeks. Who will bail us out?

 

[Fear No Evil]

Clinton/Gore had laid the groundwork to fix the US's problems. Then something happened.

They planned 9/11? :twisted:

 

[Doc Savage Fan]

Clinton/Gore had laid the groundwork to fix the US's problems. Then something happened.

Like signing the repeal of the Glass-Steagall Act in 1999?

 

[Doc Savage Fan]

Spin the past anyway you want...but the direction we are heading is not good for our country. The $64 question is what our current administration is going to do about it.

 

[sandorski]

Like signing the repeal of the Glass-Steagall Act in 1999?

I suppose I could say "No", but you already know what I meant. So I won't bother.

 

[Doc Savage Fan]

I suppose I could say "No", but you already know what I meant. So I won't bother.

I assumed that your comment was partisan hackery....but I'll give you the benefit of the doubt...please explain.

 

[Shilohen]

Not good, but a result of the crisis, itself resulting from bad financial institution regulations, most of them canceled by Bush's administration.

On a different note, but from the same graph, one can see that except during WW II, Democrats have way better track record and that Obama's part of the curve is better than the end of Bush's, not to mention that he inherited of the situation. So people blaming him for everything is pretty much uneducated and/or FUD infused. The health care bill might or not make the situation worst, but so far Obama didn't do that bad. Also, comparing absolute numbers with Reagan is borderline silly, inflation and GDP ratio are what matters when comparing financial results with the past.

 

[Doc Savage Fan]

Not good, but a result of the crisis, itself resulting from bad financial institution regulations, most of them canceled by Bush's administration.

Please elaborate.

 

[sandorski]

I assumed that your comment was partisan hackery....but I'll give you the benefit of the doubt...please explain.

Surplus, Lockbox