Mark Twain once wrote, “It could probably be shown by facts and figures that there is no distinctly native American criminal class except Congress.” Many have seen this quote but few know that Twain was a Congressional reporter for three years. He knew of what he wrote.
President Obama presented his only written budget proposal earlier this year. It was so ‘over the top’ in wasteful government spending that not even one Democrat in the Senate voted for it, nor did any Republican. The vote was 97-0 against his budget proposal!
The President has also yet to put in writing anything he is willing to cut even though tax revenues are only about 60% of what the government is spending. Government spending increased 24% during his first two years as President with the Democrats controlling both houses of Congress. There has been a staggering $8.5 trillion in new spending since he took office! Where did it all go?
His media buddies have been very good about not asking him for any specific cuts. They love his vague sound bites that give no specifics. It is much easier to criticize Republican proposals.
Both political party’s leaders are not addressing cutting the federal government’s huge deficit spending in any meaningful way. As I write this on Monday morning, it appears that both party’s congressional leaders are willing to give the President another $1 trillion today in exchange for a promise to pay back one tenth of that each year for the next 10 years, starting in 2013.
Simply put, take the new money and we hope you pay it back, even though you have no history of ever paying anything back. There is no deal to cut any federal spending. And next year Congress can change its mind about reducing the budget by the $100 billion a year promised. And even if it does reduce spending by $100 billion a year (less that 1% of the national debt), the net effect is still an increase in our national debt!
Most people do not realize that when Democrats talk about draconian cuts they are referring to cutting the rate of increase, e.g., from 6% to 5% a year. Senator Rand Paul has suggested that we freeze all government spending now and cut it 1% a year until expenditures match revenues and we have a balanced budget.
Rand’s simple, logical effective way of keeping our government solvent has been demonized by party leaders as extreme. Are there any responsible adult elected representatives besides Senators Paul and DeMint and Conservative Tea Party legislators?
President Obama has said the U.S. will default on its debt if he does not get a massive increase in the debt limit by August 2nd. Why? Because he wants to pretend the problem is solved so he can have a big 50th birthday bash on August 4th. He does not want to have to deal with unimportant things like the collapsing U.S. economy.
And the President is well aware that he is lying about the default. There will be no debt default if he just follows the law according to the Constitution.
The massive $1 trillion stimulus package was used largely to pay government worker salaries and benefits. There has been a net loss of 7 million jobs since the Democrats took over both houses of Congress in 2007.
The U.S. economy shrank by 5.1%! The national debt increased from $8.7 trillion to $14.6 trillion since 2007, a 32% increase!
Regardless of whether or not the debt limit is increased this week, the U.S.’s credit rating will probably be downgraded by the non-political credit agencies for the simple reason that it is obvious that the majority of our elected officials are not willing to make substantial cuts, because they are more interested in getting reelected than they are in the future of our country. We do not have the cash flow to pay back our debts and the financial analysts know it. They also know that a national policy based on envy, i.e., “tax the rich” will keep the real creators of prosperity from risking their savings to create new jobs.