Tag Archive for 'budget deficit'

Small Business Advocate Poll: Is Climate Change that Important?

The Question:
The President said climate change will be a major focus of his second term. What do you think?

6% - I agree. Climate change is our greatest problem.

38% - He should focus on economy recovery more than climate change.

56% - He should focus on the deficit and debt more than climate change.

My Comments:
Clearly, President Obama and small business owners are not watching the same ballgame. Small business owners voted overwhelmingly - 94% to 6% - that the president should focus on two much more important issues other than climate change in his second term. I’ll have more to say about this next week.

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Take our poll on the U.S. debt ceiling

With the intense debate going on right now in Congress over the U.S. deficit and the debt ceiling, we’d like to know what you think.

Do you think the government should raise the debt limit to avoid defaulting on its obligations?

Click on the question and give us your opinion - it will just take a few seconds and you’ll immediately see the current results of the poll.

Have more you’d like to say? Leave us a comment.

Want to know how the debt ceiling debate impacts you? Click on one of the links below to listen to my conversations yesterday with John Harrison, Founder of Aspire Financial Advisors and author of Making Mammon Serve You: A Biblical Manual for Money Mastery .

How the debt ceiling dysfunction affects you financially

Will the debt ceiling impasse hurt your small business?

Making hard financial decisions

Congress and the Obama Administration are in a great debate over our current financial condition of deficit spending. For several years, the U.S. government has been spending more than it takes in, which for governments, businesses and households alike, is a scenario that cannot go on forever.

In order to appreciate the budget balancing task, it’s important to understand that the federal budget is made up of two key financial commitments:  discretionary spending, which Congress has to renew each year, and mandatory spending, which renews automatically. Social security, Medicare, Medicaid and certain national defense items comprise mandatory spending.

The mandatory stuff amounts to about 60% of the annual federal budget, with about 35% for discretionary and 5% to pay interest on the national debt. But about half of the discretionary budget is discretionary defense spending, which only leaves about 18% of annual federal spending for everything else.

So, there you have it:  The easiest part of the debate is over less than 20% of the federal budget. Since all of this piece of the pie can’t be eliminated, you should be getting the picture that in order to move the deficit cutting needle enough to reverse the current deficit trend, hard decisions will have to be made in defense and entitlements. And that’s the hard part of the debate.

But debate it and fix it we must. Because, while the U.S. still has more assets than liabilities, that won’t last long if we continue to spend more than we take in.

We wanted to know what you thought about this issue, so last week we asked this question in the Newsletter and on our website: Funding for “entitlements,” like Social Security and Medicare, are a major part of the U.S. government’s unsustainable long-term budget deficit. Would you be willing to include changes to these programs to reduce the long-term deficit?  The results were impressive.

Those who believe everything should be put on the debate table represented 83% of our respondents. Those who think entitlements should be off the table came in at just 11%, with the remaining 6% saying they were not sure.

One thing is for sure: The question is not whether difficult financial decisions will be made - that is coming, sooner rather than later. The question is whether Americans can gin up the discipline and leadership to make the hard decisions ourselves before our non-American creditors have to do it for us.

Based on our poll results, the electorate seems to be more disciplined than our political leaders.

Thanks for being part of my community. I’ll see you on the radio - and on the Internet.

Recently on The Small Business Advocate Show, I talked with my friend and Brain Trust Member, Rich Galen, publisher of Mullings.com and talking head of the Republican persuasion,  and Ted Fishman, author of China, Inc. and Shock of Gray, about our current budget crisis. Click on the links below, take a few minutes to listen and leave your thoughts.

Who caused America’s current budget crisis? with Rich Galen

Has the U.S. debt become a national security issue? with Ted Fishman




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