The President wants us average working class Americans to believe that the "sky is falling".
Isn't the government still collecting taxes? That money must be going somewhere. Perhaps we should be directing that money to the most important things. That's what us average working class Americans have to do every day, or we end up in bankruptcy.
If I understand default, that means we do not pay the principal or interest on our debt. I don't think we would default for something like ... not paying the President or the rest of those Government Elitists in Washington. In fact, if they (the elitists) truly cared about the American People, every last one of them would be volunteering to forgo their salaries until this "crisis" is over. At a minimum, these elitists should repeal their automatic pay increases and Cadillac Benefits programs. If I were the President or a member of Congress, that is what I would be doing. My point is: it looks to me like the "crisis" is manufactured, in order to push through a political agenda.
The President's position is that the Congress has already approved a budget. And, that this approval should include any borrowing necessary to meet those obligations. I agree that when a budget is approved for a particular year, the permission to borrow the money for that year is implicit. However, we are only getting half of the story.
The problem is the budget increases that are built into the future years. It would be one thing to base next year's budget on this year's budget - without any increase. But, for some reason, the budgets for future years are set to automatically increase year on year. What idiot did that?! Our deficits are already out of control. How can anyone in good conscience put in automatic spending increases under these circumstances? This is the other half of the story.
The Democrats are calling for the Republicans to compromise. Seriously? It looks to me like the Republicans are trying to control spending for a change. The majority of Americans want to cut spending, and, they want a Balanced Budget Amendment. It seems to me that this is precisely what the Republicans are trying to do. So, why should they compromise? To compromise is to ignore the will of the American People. The amazing thing is that the Democrats are ignoring the will of the American people again, and, they are getting away with it!
The Democrats know full well that there are lots of spending increases built into future budget years. And, they are blocking every attempt by the Republicans to rein in that spending. They have the media putting out fear-mongering stories to support their talking points. The Democrats want the American People to believe we will default, and, it will be the Republican's fault, because they will not compromise.
The Democrats say they want compromise. But, it looks to me like they are trying to manipulate public opinion by obfuscating the truth; in order to push through their agenda. It seems to me that the Republicans had better not compromise, because if they do, spending will continue to spiral out of control.
I am particularly disappointed in Senator Reid. How can you claim that a piece of legislation that is trying to get our deficit spending under control is "irresponsible"? Do you (Senator Reid) recognize the real finance crisis that this country is facing? Let me help you out: it's deficit spending. You want the Republicans to compromise; how about you? What are you doing to get the deficit spending under control? And I mean really under control? Are you in favor of a Balanced Budget Amendment? If not, then I would like to know why. If so, then why aren't you working with Republicans to get it passed? It would be so easy to say that we are putting a Balanced Budget Amendment in place, and we are going to cap and reduce spending over the next 5 to ten years until we are where we need to be. Perhaps instead of trying to make legislation so complex, you should try to keep it simple. Senator Reid, why don't you try following the will of the American People for a change?
The American People had better wake up. It looks to me like the Republicans are trying to rein in spending. But, I think they are still weak. We the People need to continue to encourage (remind) the Republicans to do the will of the American People. If we don't keep up the pressure, we are going to be back to politics as usual. The Real Financial Crisis is the deficit spending.
Saturday, July 30, 2011
Wednesday, July 27, 2011
The Real Financial Crisis
Time for some good old fashioned logical thinking. This debt ceiling debate is all the rage. But, it's time to take the politics out of the discussion, and stick to logic.
We have a national debt. We pay interest on that national debt. The bigger the national debt, the more interest that has to be paid on the national debt. So, logically speaking, allowing the national debt to grow is a bad thing; because eventually the interest will exceed the potential amount of taxes that can pay it. I don't think any rationale person can argue with this logic.
The rational thing to do is to ensure that the interest payments on the national debt do not exceed a certain percentages of "revenues" (as the Democrats call them) or taxes (as the Republicans call them). This means we need to keep our debt rating, so the rate does not go up. It also means that we need to stop increasing the debt; as the more debt, the higher the interest. Again, I don't think any rational person can argue with this logic either.
So, what's the real problem???
Clearly - anything that increases the national debt is a problem. This means that any deficit spending of any kind is a problem.
Here is where the political parties diverge based on their philosophies. Democrats believe the spending is important to "balance society". That is, they want social programs for those who are less fortunate. Republicans, on the other hand, do not want social programs. They like to spend (just like the Democrats); they just like to spend on things like the military.
Over the last forty or fifty years, both parties have been doing significant deficit spending; for all sorts of reasons. As a tax payer, it looks to me like both parties have been having a fifty year orgy with our tax dollars. Well, my fellow Americans, it's time to bring that spending orgy to a close.
Democrats claim that tax cuts are to blame for deficit spending. And, I believe they are right. Cutting taxes without cutting spending is irresponsible and stupid.
Republicans claim that spending is too high. Well, yeah. Then why didn't you cut spending when you cut taxes? Republicans believe that cutting taxes helps the economy. Well, yeah. Putting more cash into any economy will help. The problem is that this cash was "borrowed cash". You can't grow an economy on borrowed cash, just like you can't spend yourself out of a recession; particularly if you are spending borrowed money.
The Democrats know that if the American people were asked to support some (or any) of their social programs via tax increases, the answer would be "absolutely not". So, they don't ask - they just spend.
You can see the problem. The issue of how much taxes, and how much to spend on social programs has completely polarized both parties; to the point where the government is broken.
Now, I am absolutely not saying we should have one party in power. That has been a complete disaster in the past. I am saying that we need to solve the real problem: deficit spending. And, that tax and social program discussions need to be taken out of the debate.
The real financial crisis IS the deficit spending. It must stop, or America is going to be bankrupt. Both parties (Democrats and Republicans) have proven themselves untrustworthy when it comes to managing a budget. Therefore, the only solution to this crisis IS a Balanced Budget Amendment.
It's time to do your part, my fellow Americans. It's time to contact your Congressional representative, your Senators and the President to let them know that deficit spending is not going to be tolerated any longer. And, that We the People expect a Balanced Budget Amendment. We also expect both parties to put aside tax and social program spending discussions until a Balanced Budget Amendment is put in place. Let's go America - Call and Write now!!
We have a national debt. We pay interest on that national debt. The bigger the national debt, the more interest that has to be paid on the national debt. So, logically speaking, allowing the national debt to grow is a bad thing; because eventually the interest will exceed the potential amount of taxes that can pay it. I don't think any rationale person can argue with this logic.
The rational thing to do is to ensure that the interest payments on the national debt do not exceed a certain percentages of "revenues" (as the Democrats call them) or taxes (as the Republicans call them). This means we need to keep our debt rating, so the rate does not go up. It also means that we need to stop increasing the debt; as the more debt, the higher the interest. Again, I don't think any rational person can argue with this logic either.
So, what's the real problem???
Clearly - anything that increases the national debt is a problem. This means that any deficit spending of any kind is a problem.
Here is where the political parties diverge based on their philosophies. Democrats believe the spending is important to "balance society". That is, they want social programs for those who are less fortunate. Republicans, on the other hand, do not want social programs. They like to spend (just like the Democrats); they just like to spend on things like the military.
Over the last forty or fifty years, both parties have been doing significant deficit spending; for all sorts of reasons. As a tax payer, it looks to me like both parties have been having a fifty year orgy with our tax dollars. Well, my fellow Americans, it's time to bring that spending orgy to a close.
Democrats claim that tax cuts are to blame for deficit spending. And, I believe they are right. Cutting taxes without cutting spending is irresponsible and stupid.
Republicans claim that spending is too high. Well, yeah. Then why didn't you cut spending when you cut taxes? Republicans believe that cutting taxes helps the economy. Well, yeah. Putting more cash into any economy will help. The problem is that this cash was "borrowed cash". You can't grow an economy on borrowed cash, just like you can't spend yourself out of a recession; particularly if you are spending borrowed money.
The Democrats know that if the American people were asked to support some (or any) of their social programs via tax increases, the answer would be "absolutely not". So, they don't ask - they just spend.
You can see the problem. The issue of how much taxes, and how much to spend on social programs has completely polarized both parties; to the point where the government is broken.
Now, I am absolutely not saying we should have one party in power. That has been a complete disaster in the past. I am saying that we need to solve the real problem: deficit spending. And, that tax and social program discussions need to be taken out of the debate.
The real financial crisis IS the deficit spending. It must stop, or America is going to be bankrupt. Both parties (Democrats and Republicans) have proven themselves untrustworthy when it comes to managing a budget. Therefore, the only solution to this crisis IS a Balanced Budget Amendment.
It's time to do your part, my fellow Americans. It's time to contact your Congressional representative, your Senators and the President to let them know that deficit spending is not going to be tolerated any longer. And, that We the People expect a Balanced Budget Amendment. We also expect both parties to put aside tax and social program spending discussions until a Balanced Budget Amendment is put in place. Let's go America - Call and Write now!!
Monday, July 25, 2011
Still not listening!
The majority of Americans want both spending cuts and a Balanced Budget Amendment.
Notice, I said spending cuts. This does not mean that Americans want spending cuts and tax increases to deal with the deficit issue - they want spending cuts - they do not want tax increases.
I do not want any tax increases on anyone other than those in the very top tax bracket. And, since this administration likes to parse every word, I define a tax increase as anything that increases the amount of taxes that I am required to pay. So, those thoughts of getting rid of the mortgage interest tax deduction had better be reconsidered. If my taxes go up, I will be sure to vote against anyone who was party to raising those taxes. I don't have an issue with raising the top tax rate from 33% to 38%, if that is what the Democrats want in exchange for the spending cuts and Balanced Budget Amendment. But, I am absolutely not in favor of anything else that will result in increased taxes.
Mr. President, how can you ignore the American people once again? The polling data is very clear: Americans want spending cuts and a Balanced Budget Amendment. Yet, you go onto national television telling the American people that you are trying very hard to get the Republicans to agree to a solution. Huh? The congress has already passed what the American people want. Are you not listening! Did you not learn anything from the 2010 election?
If the American people ever needed better evidence that this President is putting his own agenda above the will of the American people, you now have it. Let's look at the events for the last couple of months.
In May, the US hit its debt ceiling. Did the administration make any attempt to cut spending? No - there is no evidence that spending has been reduced. When you are at your debt limit, should you continue to borrow? Well, I don't think so. And, it is obvious the American people think that spending cuts and a Balanced Budget Amendment are the key to solving the debt ceiling crisis.
What have the Democrats done? Well, the Senate put together the "gang of six", as a compromise approach. And, as expected, the Conservatives were all over this plan as not being a good plan. In the mean time, Congress passes Cut, Cap and Balance. And, what do the Democrats do - nothing? Reid calls this irresponsible legislation, and refused to allow a vote. Then, the President goes on television to tell the American people that he is upset because Boehner will not compromise. The President claims that he has offered a compromise that is much better than the "gang of six" plan, and, that he does not understand why the Republicans will not compromise. Seriously? Mr. Boehner, don't you dare blink!
You have to look closely at the President's tactics here. First, the senate puts together the "gang of six", and, Reid blocks the vote. Then, the President comes up with a plan that is "better" than the plan from the "gang of six". This is a classic bait and switch. And, I suspect this administration thought they would get away with it.
Congress has already passed the Cut, Cap and Balance. This is what the American people want. So, if the President and Mr. Reid were really listening to the American people, they would get behind this plan. But, once again the Democrats are ignoring the will of the American people. After all, the American people are stupid, and, its up to the Democrats to save them from themselves. Getting the picture here?
It's time for action. Everyone needs to contact their Senators, and let them know that you will not tolerate ignoring the will of the American people any longer. We have a real opportunity for spending cuts and a Balanced Budget Amendment. Please, take a few moments to call and write your Senator. We need to put pressure on these folks, to ensure they do what they are supposed to do: represent the will of the American people.
Call and write now! Make them listen!
Notice, I said spending cuts. This does not mean that Americans want spending cuts and tax increases to deal with the deficit issue - they want spending cuts - they do not want tax increases.
I do not want any tax increases on anyone other than those in the very top tax bracket. And, since this administration likes to parse every word, I define a tax increase as anything that increases the amount of taxes that I am required to pay. So, those thoughts of getting rid of the mortgage interest tax deduction had better be reconsidered. If my taxes go up, I will be sure to vote against anyone who was party to raising those taxes. I don't have an issue with raising the top tax rate from 33% to 38%, if that is what the Democrats want in exchange for the spending cuts and Balanced Budget Amendment. But, I am absolutely not in favor of anything else that will result in increased taxes.
Mr. President, how can you ignore the American people once again? The polling data is very clear: Americans want spending cuts and a Balanced Budget Amendment. Yet, you go onto national television telling the American people that you are trying very hard to get the Republicans to agree to a solution. Huh? The congress has already passed what the American people want. Are you not listening! Did you not learn anything from the 2010 election?
If the American people ever needed better evidence that this President is putting his own agenda above the will of the American people, you now have it. Let's look at the events for the last couple of months.
In May, the US hit its debt ceiling. Did the administration make any attempt to cut spending? No - there is no evidence that spending has been reduced. When you are at your debt limit, should you continue to borrow? Well, I don't think so. And, it is obvious the American people think that spending cuts and a Balanced Budget Amendment are the key to solving the debt ceiling crisis.
What have the Democrats done? Well, the Senate put together the "gang of six", as a compromise approach. And, as expected, the Conservatives were all over this plan as not being a good plan. In the mean time, Congress passes Cut, Cap and Balance. And, what do the Democrats do - nothing? Reid calls this irresponsible legislation, and refused to allow a vote. Then, the President goes on television to tell the American people that he is upset because Boehner will not compromise. The President claims that he has offered a compromise that is much better than the "gang of six" plan, and, that he does not understand why the Republicans will not compromise. Seriously? Mr. Boehner, don't you dare blink!
You have to look closely at the President's tactics here. First, the senate puts together the "gang of six", and, Reid blocks the vote. Then, the President comes up with a plan that is "better" than the plan from the "gang of six". This is a classic bait and switch. And, I suspect this administration thought they would get away with it.
Congress has already passed the Cut, Cap and Balance. This is what the American people want. So, if the President and Mr. Reid were really listening to the American people, they would get behind this plan. But, once again the Democrats are ignoring the will of the American people. After all, the American people are stupid, and, its up to the Democrats to save them from themselves. Getting the picture here?
It's time for action. Everyone needs to contact their Senators, and let them know that you will not tolerate ignoring the will of the American people any longer. We have a real opportunity for spending cuts and a Balanced Budget Amendment. Please, take a few moments to call and write your Senator. We need to put pressure on these folks, to ensure they do what they are supposed to do: represent the will of the American people.
Call and write now! Make them listen!
Tuesday, July 19, 2011
Don't you dare blink!
This message is to the Republicans in the House and Senate: Don't you dare blink!
When I say "Don't you dare blink!", I am talking about the Balanced Budget Amendment. I am not talking about the change in the very top tax bracket. I don't agree with changing any of the other tax brackets. But, if the only thing the Democrats are asking for is an increase in the very top tax bracket from 33% to 38%, then this is something that I think should be done. The key must be spending cuts and a Balanced Budget Amendment. If the Democrats want both a debt ceiling increase and an increase in the very top tax bracket, then I think that is a fair compromise.
By the way, this amendment had better be so obvious, that anyone can read it and understand it. No more of this cryptic crap that is intended to facilitate more pork-barrel spending. No more politics as usual. This is your chance to re-establish the fiscal conservative reputation that was destroyed by both of the Bush administrations. This is your chance to do the right thing for the American people.
I believe the only way to get spending under control is to have a Balanced Budget Amendment. And, I don't think the debt ceiling should be raised unless we get a Balanced Budget Amendment.
I have been following the media stories that are all intended to get the public worried about an economic collapse because of the Republican strategy to force a Balanced Budget Amendment in exchange for raising the debt ceiling. The media (and I suspect this administration) would have you believe that the crisis is so bad that only an increase in the debt ceiling will solve the problem. Well, I have a very simple question for both the media and this administration: why did this administration wait so long to act?
This administration has known that the Republicans were going to take a position to reduce spending; this was the obvious mandate from the American people in the 2010 elections. Of course, I also recognize that this administration believes they are operating on some kind of higher moral ground, and, thus, does not have to listen to the will of the American people; but, the signs were all there. The American people are very concerned about the excessive government spending and the size of the debt. And, no amount of media spin is going to change this.
The Democrats want us to believe that the people in the top tax bracket are some how benefiting more than the rest of us. Well, what about the people in Congress who get automatic pay increases every year? To me, I would rather have our government elitists reminded who they work for, and have all of their "perks" stripped away. I am sure that would save the government more than we can get by raising taxes on those in the top tax bracket.
I know I sound like a broken record on this point, but, the American people are not stupid. They are balancing their checkbooks every day, and they are seeing the impact on the price of goods that they have to consume. They understand that endless debt is not the answer. And, they are willing to make the hard choices in order to avoid bankruptcy. This is fundamentally different from the approach being used by this administration. Despite the evidence that you cannot spend your way out of a recession (because it just causes hyper inflation), this administration has continued to spend like there is no limit to the money that can come off the printing presses. This is the kind of arrogance that the American people wanted to be stopped when they gave control of Congress to the Republicans.
So, here we are: both parties nose to nose on the issue of the debt ceiling. Yes, the Republicans can give in. But, they should not. It's time for this administration to do the right thing. In fact, it was time for this administration to do the right thing months ago.
When the average American realizes that they are not going to have the money to do what they want to do, they adjust their spending to match their income. Sure, some can go and get a better job to increase their income, and, thus, keep spending. But, at some point, the credit card limits are reached, and, they have to make some hard choices.
This administration knew that they were going to hit their borrowing limit months ago. Did they stop or even curtail their spending? Not from what I can tell. It looks to me like they have just been jamming through as much spending as they could, on every entitlement program they could.
So, not only does this administration not stop spending, they try to spin this as the rich versus the poor. Despicable. Don't get me wrong: I think the very top tax rate should be increased from 33% to 38%. The problem is that this will not balance the budget. It's just not enough money. But, it looks good in the media, and, its an effective diversionary tactic; which is why this administration is taking this approach.
The Democrats have taken to running commercials showing Republicans pushing Grandma off a cliff because they want to curtail spending. Yet, when President Obama comes out saying that the Medicare age should be raised from 62 to 65, the media praises the administration for its innovative thinking. Who is really pushing Grandma off the cliff? All of these half-truths are just causing more problems. And, both the Democrats and Republicans are guilty of trying to manipulate public opinion with half-truths. Shame on you both!
So, back to my question: why did the Obama Administration wait this long to act? Why didn't the Obama Administration do what we as average Americans would have to do once we reach our credit card limit? Why did this administration continue to spend? Imagine what would happen if all the American people just continued to spend? Oh wait, we don't have to imagine; we can just look at what caused all the foreclosures in the last three years.
It seems very logical to me that reductions in spending by consumers will adversely effect the economy. That said, what happens when a population spends money it really does not have? Well, they go into debt, and, their financial burden is increased by something called interest.
Interest is income for the banking industry, so they are not about to do anything that will interrupt their income stream. In fact, its obvious to me that greed in this industry is what caused consumers to be loaned more money than they could ever be expected to pay back. Yet, the government let the banks loan this money anyway; because they wanted the money to go into the economy. This artificial growth is nothing more than a temporary "high". And, when the money is gone and the bills are due, that is where the real pain starts. It's an addiction - plain and simple.
The sad thing is that the government wants us to be addicted to spending; because it makes us dependent on them. But, in fact, I believe it goes deeper than that. If a person being loaned money can be influenced by the person that is lending that money, then the person loaning the money has considerable power over the person borrowing the money. I think the same is true for governments, as well as the people elected into government positions. Is this what democracy has come down to?
I have a theory.
Once you subscribe to the "spend yourself out of a recession" theory, you would also have to subscribe to the "cutting spending will cause a recession" theory. It's one thing to spend money you have, but another all together to spend money you do not have.
I suspect that there would be some impact on the economy, if the government were to cut spending too drastically. This would be an impetus for this administration to resist spending cuts. If the spending cuts lead to another recession, this administration would most certainly get blamed, and they would lose the election. For me, I find it despicable that these government elitists are playing games with the lives of the average American.
I suspect that this administration was counting on their ability to manipulate public opinion through the media. The media has certainly been doing their part. I just read an article in USA Today indicating that raising the debt ceiling was not a big deal. I will take this article apart piece-by-piece in my next post. For now, I want to focus on the administration's attempt to manipulate public opinion, rather than dealing with the real problem. The real problem is spending.
Mr. President, you made a mistake. You cannot spend your way out of a recession. As a student of history, and, as smart as you are supposed to be, you should have known that. Now, its time to do the right thing. Yes, you might lose the election. But, are you willing to sacrifice the country so you can be President for another term? Wake up man! The spending is killing this country. Your policies are not working. You want to be a great leader, then try listening to a different set of people. I am an idealist too. But, I am also a pragmatist. You have to know that the spending is going to come back to haunt us. You ran on a platform of change, well, this is your chance. Start listening to the American people. Start listening to those who want to put our spending under control. Start supporting and helping the working class. Stop the pork-barrel spending. Stop the entitlements. Support a Balanced Budget Amendment. Now that would be change I can believe in.
Mr. President, you should have addressed the spending head-on, instead of trying to talk your way out of this. It looks to me like you wanted to pick a fight with the Republicans on this issue. I suspect you even thought you could use this issue to catapult yourself into another term in office. Well, I can tell you that your message is resonating with the left; as I am hearing it from all my liberal friends. But, I can also tell you that your message is not resonating with those in the middle; and, that is who you need to convince to get re-elected. You claim to be a centrist - now it's time to prove it. It's time to get behind the spending cuts. It's time to endorse a Balanced Budget Amendment.
I reiterate my challenge to the Republicans in the House and the Senate: Don't you dare blink!
In exchange for the Balanced Budget Amendment and immediate spending cuts, the Republicans should agree to raise the debt ceiling and to increase the very top tax rate from 33% to 38%.
When I say "Don't you dare blink!", I am talking about the Balanced Budget Amendment. I am not talking about the change in the very top tax bracket. I don't agree with changing any of the other tax brackets. But, if the only thing the Democrats are asking for is an increase in the very top tax bracket from 33% to 38%, then this is something that I think should be done. The key must be spending cuts and a Balanced Budget Amendment. If the Democrats want both a debt ceiling increase and an increase in the very top tax bracket, then I think that is a fair compromise.
By the way, this amendment had better be so obvious, that anyone can read it and understand it. No more of this cryptic crap that is intended to facilitate more pork-barrel spending. No more politics as usual. This is your chance to re-establish the fiscal conservative reputation that was destroyed by both of the Bush administrations. This is your chance to do the right thing for the American people.
I believe the only way to get spending under control is to have a Balanced Budget Amendment. And, I don't think the debt ceiling should be raised unless we get a Balanced Budget Amendment.
I have been following the media stories that are all intended to get the public worried about an economic collapse because of the Republican strategy to force a Balanced Budget Amendment in exchange for raising the debt ceiling. The media (and I suspect this administration) would have you believe that the crisis is so bad that only an increase in the debt ceiling will solve the problem. Well, I have a very simple question for both the media and this administration: why did this administration wait so long to act?
This administration has known that the Republicans were going to take a position to reduce spending; this was the obvious mandate from the American people in the 2010 elections. Of course, I also recognize that this administration believes they are operating on some kind of higher moral ground, and, thus, does not have to listen to the will of the American people; but, the signs were all there. The American people are very concerned about the excessive government spending and the size of the debt. And, no amount of media spin is going to change this.
The Democrats want us to believe that the people in the top tax bracket are some how benefiting more than the rest of us. Well, what about the people in Congress who get automatic pay increases every year? To me, I would rather have our government elitists reminded who they work for, and have all of their "perks" stripped away. I am sure that would save the government more than we can get by raising taxes on those in the top tax bracket.
I know I sound like a broken record on this point, but, the American people are not stupid. They are balancing their checkbooks every day, and they are seeing the impact on the price of goods that they have to consume. They understand that endless debt is not the answer. And, they are willing to make the hard choices in order to avoid bankruptcy. This is fundamentally different from the approach being used by this administration. Despite the evidence that you cannot spend your way out of a recession (because it just causes hyper inflation), this administration has continued to spend like there is no limit to the money that can come off the printing presses. This is the kind of arrogance that the American people wanted to be stopped when they gave control of Congress to the Republicans.
So, here we are: both parties nose to nose on the issue of the debt ceiling. Yes, the Republicans can give in. But, they should not. It's time for this administration to do the right thing. In fact, it was time for this administration to do the right thing months ago.
When the average American realizes that they are not going to have the money to do what they want to do, they adjust their spending to match their income. Sure, some can go and get a better job to increase their income, and, thus, keep spending. But, at some point, the credit card limits are reached, and, they have to make some hard choices.
This administration knew that they were going to hit their borrowing limit months ago. Did they stop or even curtail their spending? Not from what I can tell. It looks to me like they have just been jamming through as much spending as they could, on every entitlement program they could.
So, not only does this administration not stop spending, they try to spin this as the rich versus the poor. Despicable. Don't get me wrong: I think the very top tax rate should be increased from 33% to 38%. The problem is that this will not balance the budget. It's just not enough money. But, it looks good in the media, and, its an effective diversionary tactic; which is why this administration is taking this approach.
The Democrats have taken to running commercials showing Republicans pushing Grandma off a cliff because they want to curtail spending. Yet, when President Obama comes out saying that the Medicare age should be raised from 62 to 65, the media praises the administration for its innovative thinking. Who is really pushing Grandma off the cliff? All of these half-truths are just causing more problems. And, both the Democrats and Republicans are guilty of trying to manipulate public opinion with half-truths. Shame on you both!
So, back to my question: why did the Obama Administration wait this long to act? Why didn't the Obama Administration do what we as average Americans would have to do once we reach our credit card limit? Why did this administration continue to spend? Imagine what would happen if all the American people just continued to spend? Oh wait, we don't have to imagine; we can just look at what caused all the foreclosures in the last three years.
It seems very logical to me that reductions in spending by consumers will adversely effect the economy. That said, what happens when a population spends money it really does not have? Well, they go into debt, and, their financial burden is increased by something called interest.
Interest is income for the banking industry, so they are not about to do anything that will interrupt their income stream. In fact, its obvious to me that greed in this industry is what caused consumers to be loaned more money than they could ever be expected to pay back. Yet, the government let the banks loan this money anyway; because they wanted the money to go into the economy. This artificial growth is nothing more than a temporary "high". And, when the money is gone and the bills are due, that is where the real pain starts. It's an addiction - plain and simple.
The sad thing is that the government wants us to be addicted to spending; because it makes us dependent on them. But, in fact, I believe it goes deeper than that. If a person being loaned money can be influenced by the person that is lending that money, then the person loaning the money has considerable power over the person borrowing the money. I think the same is true for governments, as well as the people elected into government positions. Is this what democracy has come down to?
I have a theory.
Once you subscribe to the "spend yourself out of a recession" theory, you would also have to subscribe to the "cutting spending will cause a recession" theory. It's one thing to spend money you have, but another all together to spend money you do not have.
I suspect that there would be some impact on the economy, if the government were to cut spending too drastically. This would be an impetus for this administration to resist spending cuts. If the spending cuts lead to another recession, this administration would most certainly get blamed, and they would lose the election. For me, I find it despicable that these government elitists are playing games with the lives of the average American.
I suspect that this administration was counting on their ability to manipulate public opinion through the media. The media has certainly been doing their part. I just read an article in USA Today indicating that raising the debt ceiling was not a big deal. I will take this article apart piece-by-piece in my next post. For now, I want to focus on the administration's attempt to manipulate public opinion, rather than dealing with the real problem. The real problem is spending.
Mr. President, you made a mistake. You cannot spend your way out of a recession. As a student of history, and, as smart as you are supposed to be, you should have known that. Now, its time to do the right thing. Yes, you might lose the election. But, are you willing to sacrifice the country so you can be President for another term? Wake up man! The spending is killing this country. Your policies are not working. You want to be a great leader, then try listening to a different set of people. I am an idealist too. But, I am also a pragmatist. You have to know that the spending is going to come back to haunt us. You ran on a platform of change, well, this is your chance. Start listening to the American people. Start listening to those who want to put our spending under control. Start supporting and helping the working class. Stop the pork-barrel spending. Stop the entitlements. Support a Balanced Budget Amendment. Now that would be change I can believe in.
Mr. President, you should have addressed the spending head-on, instead of trying to talk your way out of this. It looks to me like you wanted to pick a fight with the Republicans on this issue. I suspect you even thought you could use this issue to catapult yourself into another term in office. Well, I can tell you that your message is resonating with the left; as I am hearing it from all my liberal friends. But, I can also tell you that your message is not resonating with those in the middle; and, that is who you need to convince to get re-elected. You claim to be a centrist - now it's time to prove it. It's time to get behind the spending cuts. It's time to endorse a Balanced Budget Amendment.
I reiterate my challenge to the Republicans in the House and the Senate: Don't you dare blink!
In exchange for the Balanced Budget Amendment and immediate spending cuts, the Republicans should agree to raise the debt ceiling and to increase the very top tax rate from 33% to 38%.
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