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Tim Huelskamp: A budget plan that actually works

U.S. Representative Tim Huelskamp writing in the Washington Times:

Imagine a family sitting at its kitchen table with bills piled high. They have no budget, only a general sense of where money comes from and where it goes. The lenders to whom they owe a considerable sum are not calling yet, but they might be soon. They owe nearly 5 times as much as they spend each year and almost 7 times as much as they earn. What’s more, the amount of debt goes up every single month because 40 cents out of every dollar they spend is borrowed.

If a financial planner sat down with this family, their situation would accurately be declared a man-made disaster. A full-on crisis management plan to restore financial responsibility would be developed and implemented. They would cut up their credit cards, stop buying nonessentials and create a plan to manage how much comes in and how much goes out. …

Just like a family facing financial difficulty, there is a way out. It may not be easy, and it might be painful at times, but it is time for Washington to be responsible, resourceful and creative. Failure to enact a multifaceted solution to our overspending problem will only add to more bills on the table — and eventually, a further downgrade of our credit rating and a shattering of the dreams of all American families.

Full article — well worth reading — is at HUELSKAMP: A budget plan that actually works: Putting government’s fiscal house in order.