Our economic problems are becoming more severe, and our political leaders refuse to cooperate outside of party lines…
The debt reduction “Super Committee” which was created to cut spending, failed today to reach an agreement to cut our massive budget. Failure in this case, is set to automatically trigger large cuts in defense spending (unless it is blocked by Congress). Barack Obama came out placing much of the blame on the GOP’s unwillingness to compromise. He also stated that he is still committed to cutting 2.2 trillion dollars over the next 10 years.
The “Super Committee” was created to reduce the deficit and cut unnecessary government programs. Ballooning costs in social security, healthcare and defense, plus a reduced revenue due the Bush tax cuts, has led the U.S. into unsustainable deficit.
U.S. Defense Spending
In 2010 the U.S. defense budget was almost 7 times greater than the second largest military spender, China. In 2009, the U.S. spent 4.7% of its GDP on defense, which is higher than the top 7 largest military spenders. The wars in Iraq and Afghanistan are an obvious contributor to this larger military. But, with the war in Iraq coming to a close and Afghanistan scheduled to end in 2014, defense spending should drop as along with troop levels.
Foreign Bases
Currently the U.S. Military has bases in 63 countries world wide. The cost of maintaining these bases makes up a good-sized portion of our defense budget. Some estimates have the number of foreign bases at over 865 (although many believe this number to be too low). Currently, there are 268 U.S. military installations in Germany and 124 in Japan.
Military leaders including Donald Rumsfeild and the National Security Adviser Jim Jones have called for the closure of many overseas bases in order to reduce spending a few years prior. Rumsfeld had plans to close over 20% of all overseas bases, but due to political differences, this massive closure was stalled. One estimate stated that the closing of 20-30 U.S. military bases could save 10-20 billion annually.
Growth In Healthcare and Social Security
In addition to an overwhelming military budget, the costs of healthcare and social security continue to grow. The Social Security Administration’s own website states that “population aging is the largest single factor contributing to cost growth in the two programs.” The baby 
boomer generation is living much longer and consuming the benefits at an increased rate.
In 2010, costs of social security exceeded its budget for the first time in 20 years, by $49 billion. It was also projected to exceed its budget by $46 billion, in 2011. A struggling economy paired with population growth and and aging seniors, were blamed for reduced revenues and higher expenditures. The site also predicted the deficit would decrease by 20 billion if economic growth returned as they expected (which is not likely).
The conclusion of the article stated “projected long-run program costs for both Medicare and Social Security are not sustainable under currently scheduled financing.”
Bush Tax Cuts
One more contributor to our enormous deficit is reduced tax revenue, due to the Bush Era tax cuts. The Economic Growth and Tax Relief Reconciliation Act of 2001 and Jobs and Growth Tax Relief Reconciliation Act of 2003 significantly lowered taxes for the majority of households.
The cuts were designed to increase economic growth and job creation. But, there are opposing views of their effects. Conservative groups say they shifted the tax burden to the wealthy, while Democratic groups say that upper-class households received the most benefit.
Overall revenue from taxes has been down since 2001. These revenues consistently fell below the 30-year average of 8.4% of GDP.
Conclusion
A variety of factors contribute to our overall deficit. Our population is growing larger and older. Many Americans expect the same benefits, but want to pay less for them in taxes. Cuts are necessary in spite of this greater demand.
In the wake of 2 wars, our defense spending is also bloated and needs to be trimmed. Hundreds of military bases across the world require maintenance, and may not be needed for the defense of the country.
Federal revenue problems also exist. The amount of tax money taken in, is not adequate to pay for the services we have grown to expect. As the global economy flounders, U.S. citizens need to adjust their expectations and accept a lower standard of living for the time being.
