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  • Obama’s “Fiscal Responsibility Summit” Can Help Solve Entitlement Crisis

    President Obama will host a three-hour “Fiscal Responsibility Summit” at the White House Monday to “underscore how big the problems are.” Sixty members of the House and Senate, and representatives from various think-tanks and advocacy organizations from across the political spectrum will attend in an effort to sort out the nation’s fiscal woes.

    The basics of the long-term entitlement problem are generally agreed upon. In April of 2008 members of the politically diverse coalition know as the Heritage-Brookings Fiscal Seminar published the paper, “Taking Back Our Fiscal Future.” In it, the experts agreed – even before the days of $1 trillion deficits – that:

    Unsustainable deficits in the federal budget threaten the health and vigor of the American economy… The first step toward establishing budget responsibility is to reform the budget decision process so that the major drivers of escalating deficits—Social Security, Medicare, and Medicaid—are no longer on autopilot.”

    Thankfully, the members of the Heritage-Brookings Fiscal Seminar have been invited to participate in the summit. The authors, both left and right leaning, all support the creation of an independent and bipartisan commission to examine entitlements and present specific options for reform to Congress. In a statement released this week, the group outlined four key elements for an entitlements commission to be successful:

    • It must be truly bipartisan and develop solutions that command wide support.
    • It must have a broad mandate to address all aspects of the fiscal problem while fostering strong economic growth.
    • There must be no preconditions to the deliberations. All options must be on the table for discussion. Nobody should be required to agree in advance to any option.
    • Recommendations must go before Congress for an up-or-down vote with few if any amendments.

    President Obama should heed this advice and use this event to push for such a commission. Monday’s summit has the potential to be a significant first step toward America’s long-term financial stability. It would be a major missed opportunity if the President allows it to devolve into yet another frivolous photo-op.

    Posted in Economics [slideshow_deploy]

    12 Responses to Obama’s “Fiscal Responsibility Summit” Can Help Solve Entitlement Crisis

    1. ra,ohio says:

      This is a fig leaf in a hurricane.

      If you think that Obummer is going to listen to economists, senators and representatives that disagree with his controllers,

      I gotta bridge I'll sell ya.

      This guy, and the machine behind him, have been in POWER for ONE MONTH !!!!!

      REVOLT !!!!!

    2. Angry Dumbo says:

      Now let me get this straight. The same economists who said we had a liquidity problem 6 months ago, now agree that the problem going forward is solvency.

      I read Prof. Roubini in the WSJ, I see the benefits of nationalization from the banks' perspective, however, I just don't see the benefit of nationalization from the prospective of a taxpayer.

      Pardon my ignorance, but why should we nationalize these banks in lieu of traditional bankruptcy proceedings? Why should the taxpayer bear the burden of reanimating these zombie banks? If these banks still hold valuable assets, what benefit is nationalization versus bankruptcy proceedings where the toxic, semi-toxic, and non-toxic assets can be sold off with zero taxpayer exposure? I understand the banks have a line of credit amounting to nearly 10 trillion, is there need for credit extensions beyond that amount? The only way to solve this crisis of confidence is to let the insolvent banks tap into their credit and get the bad debt off their books. Then again, I thought that was the program all along.

    3. Kringees Mom says:

      Let me get this straight. There will be a financial summit on Monday and on Tuesday Pres. Obama will be presenting his budget ideas and deficit reduction plan to congress and the nation. Does this mean that he will be working all night Monday in order to incorporate the findings of the summit into his plan to be announced on Tuesday? I think not, I think he already has his ideas, and the notion of a Summit is merely an opportunity to posture for the sheeple.

      Remember how he dismissed the charges against the Gitmo terroists and then invited their victims for a meeting at the White House the following day. This is the same thing.

    4. Dennis, Idaho says:

      It worries me when they start talking about Social Security and entitlements. The cuts will be on the those who have paid in all their working lives, not on those who have put nothing into the system. No one is entitled to a free ride at the expense of others. Everyone has something he or she can contribute even those with disabilities.

    5. Lynn B. DeSpain says:

      President Obama stated that he will cut the deficet in half. His mathematician tried to explain this to the major Media people over the weekend. With mathematics one can do anything, especially be confusing to the point of simplicity.

      So the media reported that President Obama will cut the deficet in half. That he will, the last year of his four year service. He plans to leave the Bush Tax Cuts in place untill they run out naturally.

      In the meantime he plans to spend a trillion a year until the last year of his service in which he will spend 1/2 trillion.

      Our government hs now Constitutional right being in the Banking business, nor the Stock market businesss.

      Mr. Obama forgets that we are a Republic and that the Laws of the Constitution are to limit the powers of Congress and the Presidency, not increase them.

      We do have a cancer in our financial systems. In a large part created by Congress telling the Banks that you will lend to minorities with zero down and limited finanial checks or lose your FDIC.

      We nee to allow this Nation to go through its withdrawls of Government sponsership, suffer the consequences, rid ourselves of illegals which costs us 80% more when all the direct and indirect costs are added that both our wars added. Stop our Socialized Programs that lead us towards Democracy and failure, remember the Greeks.

      If we were a true Democracy then the majority would rule. we could legally have Vigilantes, mob rules, juries where only a mojority vote would convict. Neighborhoods where your home and property could become a park, without compensation, if the majority of your neighbors thought it was a good idea!

      You cannot fix a bad idea by throwing good money after bad!

      Hozro

    6. Bob Chandler says:

      Let me get this straight. One day the president says that he won't use the stock market as a measuring rod to gage the economy. The next day he said that he is going to tax the rich(those who create jobs that spur the economy). Is there any doubt as to where we're really headed under the leadership of President Hugo Chavez Obama?

    7. Marshall Hill MI. says:

      Am I being Censored?

    8. Spiritof76, New Hampshire says:

      Marshall Hill may be right! Sometimes, I post somethings but I never see it actually posted. I figured that I had crossed some censorship lines although none of my postings attack people only their ideas. I presume sarcasm is still allowed?

    9. greg hauenstein, ca says:

      The POTUS feels empowered to run the tab for several trillion because the lender is a brother in theory, a communist dictatorship. Who better to be our future landlord than the perfect example of liberal collectivist thought with a working system complete with total control of its sheeple. I'm shure that the very concept of making the disenting family pay for the executioners bullet gives liberals a tingle up their collective legs. 46% of American households have no kids, I think the liberal teachers/media have succeeded in convincing some americans that the future for capitalism is dying.

    10. April McNamara, Colo says:

      To Marshall Hill. I've submitted things that haven't been posted. I never write anything that would break any rules. So, if RA from Ohio gets posted and Barb–MM gets posted, it doesn't make sense…unless…makes me think that "they" don't like people making valid points from the "other" side.

    11. Danny , AL says:

      this nation will never get back to fiscal reposnibility as long as we have a President and Congress that want to spend more and entitle more.

      The summit is no more than political cover that he can use to spend the country in to banruptcy. And he will have the media go out and say look at what Obama is doing he is being fiscally responsible, all the while he is creating trillion dollar deficits. Andrew Jackson,where are we when we need you. If you didn't know he did pay off the Debt when he was President.

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