Who Cares About Ireland?
Did you notice the headlines with Ireland?
They are fighting for financial solvency. Ireland’s government announced that it was planning to slash its budget by $20 billion dollars. The plan will cut $13.3 billion in spending, and $6.7 billion dollars in extra taxes. The cuts will mean the loss of thousands of state jobs, welfare benefits and pensions payments.
Prime Minister Brian Cowan stated everyone in the nation will experience a lower standard of living.
Notably, part of the motivation for these massive budget cuts is that Ireland wants to secure a $115 billion dollar loan from the European Union and International Monetary Fund.
So who cares about this news? Well, we all should. The budget cuts are desperate but necessary measures for a country fighting for solvency. The cuts, in truth, should have taken place years ago, but frankly, the smoke alarm wasn’t going off.
Sound familiar? In the United States, we have a looming $55 trillion dollar unfunded entitlement in the form of Social Security, Medicare and Medicaid. This is on top of our multi trillion dollar debt. How do we deal with these massive numbers. The answers are pretty simple:
1. Cut the budget
2. Cut the entitlements even to some degree
3. Raise taxes
Ireland had to implement all three because they are the brink of bankruptcy. We can only hope that America will act prior to being driven to the brink.
It will take leaders with foresight, vision and courage to act. Pray that they arise.