New Budget Plan

            Now I know I have talked with you all about the budget crisis the government is having already. There is however a recent development called the Cut, Cap, and Balance plan thought up by the republicans.

This new budget plan has three main parts. The first part is the cutting, where the government will be cutting $111 billon out of the 2012 budget plan. The second part is the capping where the government will put a cap on spending at about 20% gross domestic product, or GDP for short. And finally the third part is balancing the budget to make it harder to raise taxes.

Doug Elmendorf presented the new idea to congress during a meeting called by Jason Furman, the Deputy Director of the national Economic Council, on June 23.

Right now the economy is at $15 trillion so we would be cutting about two thirds out of next years budget.

Personally I believe this could work. Now I know I have said this about other budget options, but the cutting back and capping off may work if it passes congress and help turn our economy around.

The other option is to barrow another $2.4 trillion dollars. Now this option I strongly disagree with. You do not help a situation like this by going further into debt. No a situation like ours can only be helped if we tighten America’s belt, so to speak.

Sadly it seems that nobody wishes to pass this new plan. Therefore it may not make it pass Congress. This is unfortunate for I believe this plan may work out for the better.