A week ago my written blog addressed the size of the deficit and how it continues to damage our future.  In reading and hearing responses many asked what solutions can be offered instead of just criticizing the "Great One".  Today's blog focus on concrete measures to reduce the deficit.  The unavoidable fact is that the only way to cut the deficit is to reduce spending.  History has shown that increasing taxes to solve budget problems reduces government revenues in the long term. This occurs principally because it reduces GDP growth and tax payers react to increase taxes by shifting their  resources to non taxable instruments or non taxable pursuits.  Consequently the only conclusion that any common sense thinking human being can reach is reduce cost.

The quickest reduction in federal cost must come from the reduction of the federal payroll.  This includes a cut of federal employees and a substantial reduction in federal salaries.  In this mode Congress should set the example.  In a business that consistently loses money, it's leaders take significant reduction in salaries, bonuses and perks.  It would not be unreasonable to ask these congressional leaders to take a 20% salary reduction until the deficit is in balance.  Give them additional incentives to balance the budget with a 50% bonus when it has been balanced.

Federal employees make approximately 40 to 50% more than the average American worker in the private sector.  It would not be outrageous to ask federal employees to review their federal compensation and put it in line with the private sector.  In a business that can't make a profit managers terminate or reduce salaries of  the least productive employees.    Perhaps another area that must be addressed are federal transfer payments.  Social Security is a no brainer and can become solvent with one simple fix.  Ask people to work an additional two years to reflect increased longevity.  Federal pensions should be readjusted to reflect the current demographic trends to longer lives.  This would require lower payout's or increased working longevity for eligibility.

End all earmarks, need I say more.