Grand Rapids, MI -- (SBWIRE) -- 03/17/2011 -- As most of us have, financial advisor Dennis Tubbergen has been watching the unfolding drama as the U.S. government attempts to avert a shutdown. Tubbergen recently discussed this topic on his online blog, trying to put the situation into a perspective the average American can understand.

First, Tubbergen refers to a post on Bloomberg.com on February 26, 2011 which states, “House Republicans proposed a two-week spending plan that would make $4 billion in cuts through a handful of reductions already backed by President Barack Obama and by eliminating unspent funds for legislative pet projects.”

The article goes on to say the House recently passed legislation cutting $61 billion in 2011 by the elimination of over 100 programs and cutting funds from hundreds of other programs.

“The Washington politicians are arguing about $61 billion in spending cuts in an attempt, according to some of the politicians, to bring about fiscal responsibility,” explains Tubbergen. “Is that true? Are the Republicans really holding the feet of the Democrats to the proverbial fire? Are they the voice for fiscal responsibility?”

Not from where Tubbergen sits.

“The reality is $61 billion in cuts won’t significantly alter or affect the national deficit or the national debt,” continues Tubbergen. “Recently, it was reported that the U.S. federal deficit will reach $1.65 trillion this year. As a percentage of the total deficit, $61 billion is less than 4% of the total problem. “

Tubbergen finds the fact that the politicians are even debating this issue to be ridiculous.

“They should be cutting the $61 billion immediately and then getting to work on the next trillion,” states Tubbergen. “Let me put this into average American household terms.”

Tubbergen goes on to say that a married couple, both working, has a home with a mortgage payment of $1,000. That payment includes the taxes on the property and the property insurance. The couple also pays an electric bill, a natural gas bill and a cable bill each month. For purposes of this discussion, Tubbergen assumes the cable bill is $37 per month.

“Now, one of the two loses their job,” recites Tubbergen. “Down to just one income, the couple has some decisions to make about what to cut out of their household budget and what to keep in the budget. They have to cut about $1,000 per month in expenses in order to make their household budget balance.”

Instead of making the hard choices, the couple decides, for starters, to eliminate their cable and see how it goes. You don’t need a degree in economics to figure out that it won’t take long and the couple will be broke, unable to meet their household budget.

“That’s exactly what is happening at the federal level currently,” concludes Tubbergen. “Given the magnitude of the U.S. deficit and debt, it seems that there would be meaningful discussion about getting spending under control. But, instead, the two parties are arguing about the cable bill.”

The bottom line, in Tubbergen’s opinion? More of the same from Washington.

Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in the USA Wealth Management Building in downtown Grand Rapids, Michigan. Tubbergen is CEO of USA Wealth Management, LLC and has an online blog that can be viewed at http://www.dennistubbergen.com. His weekly talk show The Everything Financial Radio Show is simulcast on two Michigan metro stations and also airs to over 600,000 financial advisors, with recent podcasts available at http://www.everythingfinancialradio.com. His seminar schedule can also be viewed at the above radio link.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee.

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