Cutting the deficit and government spending are something Democrats, Republicans and the Tea Party have in common. The problem is that what has been proposed isn't anywhere near enough!

Currently the Social Security program is running a deficit and that will be true as far as the eye can see. What this means is that the program is paying out way more than it is collecting. The future payouts from Medicare and Medicaid are much larger than Social Security and they too are running a deficit.

Many people who will be retiring soon and in the next decade have built their retirement plans on what Social Security will pay them. My late father told me when I got my first "real" job at 16 and began paying into Social Security back in 1974, that I should not ever expect seeing that money again. I believed him and have mentioned for years in my workshops that most of us today will stand a better chance of seeing a visitor from outer space than a check from Social Security.

That said, there are lots of folks out there that are depending on these programs, not unlike depending on the sun rising tomorrow. It's human nature to get upset when something that has been promised does not materialize. People riot when governments renege on promises such as Social Security, Medicare and Medicaid. We saw what happened in Greece. What's been happening across the Middle East is more rebellion against governments in general, people wanting their freedom.

Wisconsin is a great example. While both sides have remained civil, there were times it got close. It's all about spending and getting spending in line with income. We need to do the same as individuals. If our income can't sustain our spending, then we need to cut back. So do governments.

What are your ideas for areas from which the government can cut back their spending? Please let me hear from you in the comments below.

CategoriesCredit & Debt