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If the government was going to fix only one thing...
It should be the "Zero Sum" aspect of our budget. Know why our government has to make cuts all over if the economy is not doing so well this year? It's because last year it was doing fantastic, and we had a lot more money to spend.
It's kinda stupid to think that we're spending 100% of what we make. Kinda makes planning for the future... uh, impossible. The budget should not be a matter of "well, we spent this much last year... so we should spend this much this year." That doesn't really make any sense.
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