Independent progressive, Ralph Nader, offered some pointed advice that is especially relevant to California and the rest of the nation. While providing a point by point critique of President Obama's Nobel Peace Prize speech, Nader highlighted a critical economic reality that is fundamental to any budget, be it at the state or federal level.  For a budget to be optimized, it must possess clearly delineated objectives and priorities, otherwise, as made abundantly clear in Sacramento and in Washington DC, back-breaking budget deficits are sure to result.  Nader writes:

     'The Afghan War and the Iraq war-occupation- already costing a trillion dollars- are costing the American people every time Washington says there is not enough money for neonatal care, occupational disease prevention, cleaner drinking water systems, safer hospitals, prosecution of corporate criminals, cleaner air, or upgrading and repairing key public facilities.'

In other words, spending vast sums of money on certain aspects of the budget comes at the expense of a lack of spending on other aspects of the budget.  Take this a step further in California and at the national level.  California is faced with $83 billion of budget deficits precisely because everything in the budget is considered a top priority, therefore everything is maximally funded, and as a result, the state finds itself mired in crushing debt.  The same holds true for the federal government.  Running $1.4 trillion deficits, leadership proposes to spend trillions on corporate bailouts and stimulus packages, trillions on overseas wars, trillions on healthcare, and so on.  The result?  A nation that is $12 trillion in debt and a currency that has lost tremendous value over the years, resulting in a lower standard of living for hard working Americans due to inflation.

What can be done to stem the tide of big deficits in Sacramento and DC?

As Nader so aptly outlined, specific budgetary priorities must be established.  Depending on the Constitution and present fiscal reality, certain agendas should be more heavily funded than others in order to achieve budgetary objectives and to live within one's means. Right now, California and the United States are not living within their means because there are no clearly defined priorities.  Energy is a priority. Healthcare is a priority.  Infrastructure is a priority.  Education is a priority.  War (at the federal level) is a priority.  But, logic and fiscal pragmatism dictate that all of these different issues cannot simultaneously exist as top priorities.  Some must be considered higher priorities than others in order to operate within the framework of a fiscally responsible budget.

If the state of California and the United States are to regain any semblance of fiscal sanity, then a new economic model must be developed and put into action.  The current model of virtually unlimited funding for almost every facet of the budget is saddling present and future generations with unfathomable debt.  Both the people and the politicians need to immediately engage in a robust debate specifically defining our state and national priorities before we pass the point of no return.