US Politics: A Beginner's Guide to Reform of Social Security

Social Security and reform. Mention the two together, throw in references to "looming fiscal crisis" or deficit reduction, and just sit back and watch the hackles rise on various concerned parties. And understandably so; Social Security is the bedrock principle of a society that does not abandon the disadvantaged, the unlucky, and, yes, the profligate or irresponsible to an old age of absolute deprivation. Reform, especially when uttered by Republicans, conjures visions of soup kitchens for the retired, a fate that should await no citizen of a civilised society.

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US Politics: Getting Serious on the Federal Debt?

The stakes involved in America's debate over the country's debt crisis were significantly raised last week. Senior lawmakers, and some of the figures involved with the President's deficit reduction commission, have decided that a passive role on the sidelines is no longer a winning strategy for forcing Congress and the White House to get serious about talks designed to solve the debt problem. In an appearance before the Senate Budget Committee on Tuesday, Alan Simpson --- one of the co-chairs of the commission --- warned that if the United States did not attempt to deal with the debt burden immediately then, sometime within the next two years, the nation would face its worse economic crisis in history.

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US Politics: A Beginner's Guide to the Plans to Cut Government Spending

On Monday, the Tea Party Caucus held a meeting in Washington to discuss their potential approaches to a forthcoming vote, probably in June, on raising America's debt ceiling. No definite conclusion was reached by the Caucus, but here are the headline numbers, from the President's deficit reduction commission, that illustrate how the the debt burden in in the United States is forcing the political conversation in Washington....

In 2010, Federal Government spending was nearly 24% of the nation's GDP; a level not seen since the days of WWII. To cover this spending, the government raised tax revenues of 15% of GDP. In total, the difference between spending and revenue in 2010 –-- the deficit –-- stood at 9% of the value of all the goods and services produced in the economy, or GDP.

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