David Stockman makes sense. . .

OMG –  I’m watching David Stockman being interviewed by Elliott Spitzer on CNN, and the man absolutely makes sense.  In other words, he agrees with me on a number of issues.

·        You can’t lower taxes and continue spending.  Government spending that consistently exceeds revenues will always result in deficits.

·        We cannot afford to extend the Bush tax cuts; the government needs the money to reduce the deficit.

·        The Tea Partiers may be well intentioned, but they are tremendously naïve.  They will find that there is very little room for cutting enough to make a dent in the deficit without tax increases.  The Tea Party’s favorite targets – waste, fraud, abuse and earmarks – collectively account for no more than 15 hours of Government spending per year.

·        Major changes must be made in the Social Security and Medicaid programs.  Income limits on Social Security contributions must be raised.  Social Security benefits must be made subject to means testing of income and assets.  Wealthy Americans who are currently receiving Social Security should have their benefits reduced, too.

Stockman also appeared on 60 Minutes on October 31, and called the Republicans’ continued insistence on extending the Bush tax cuts as “demagoguery.”  Stockman noted that, “[i]n 1985, the top 5% of [America’s] households – the wealthiest 5% - had net worth of $8 trillion – which is a lot.  Today, after serial bubble after serial bubble, the top 5% have net worth of $40 trillion.  The top 5% have gained more wealth than the whole human race had created prior to 1980.”   Stockman would impose a special 15% surtax on the wealthiest Americans to help reduce the deficit.

It’s really creepy to find myself of one mind with Ronald Reagan’s budget director, but these are strange days indeed.  God bless you, David Stockman.  As far as I’m concerned, you’ve redeemed yourself.