Posts Tagged ‘deficit spending’

The Gift

In late 1941, WW II had been raging for over two years.  Britain was holding out alone in Europe and Hitler’s Panzers were within sight of Moscow.  With the horrors of WW I fresh, the United States wanted no more foreign entanglements.

FDR knew the US would have to enter the war on the side of the Allies.  Allowing the Axis Powers to absorb huge populations and untold natural resources would eventually create powers too big to defeat.  Every farm, oil well, rubber tree, factory, and military age man absorbed by the Axis meant another increment of strength to our enemies.  What – if anything – could awaken the American people to the growing and imminent threat to our very existence as a free republic?

Admiral Isoroku Yamamoto stepped up with a perverse and tragic gift on December 7th.  The horrific news of the attack on Pearl Harbor galvanized the American people as nothing else could.  The intense anger following that sneak attack combined with the sober realization that half the world’s modern military strength was arrayed against us stoked the determination to destroy our enemies.  The acute realization that our nation was in mortal danger of becoming an Axis conquest awoke the instinct of self preservation.  From that moment on, America was at war to win.

The Obama Administration is our generation’s domestic Pearl Harbor.  We must take advantage of it to preserve our country for future generations.  Barack Obama has given us a priceless gift if we are strong, smart, and organized enough to use it to our advantage. It is an attack on our freedom, liberties, way of life, and our children’s future, from within. It is an assault on America’s greatness, the destruction of her exceptionalism, and the squandering of her prosperity.  It is up to us and like minded people throughout the land to seize on this gift and turn it to our advantage.

In my adult lifetime, America’s population has increased about 40%.  In that same time, the proportion of people dependent on, or working for government has increased by over 270%.  A whopping 30% of all Americans are currently either working for government or receiving some sort of assistance, transfer payment, or entitlement.

The currently employed labor force is about 45% of our total population.  Almost half of them pay no taxes whatsoever, so that further dilutes the number supporting the 30% to around 22.5%.  If you pay taxes, you are not only supporting yourself, but also more than one person on government programs or employment.  The imbalance of these numbers gets worse by the year.  It is the slow bleeding of our fiscal stability on the path to inevitable to economic suicide.

Obama and his cadre of hacks, elitists, sycophants, czars, camp followers, and assorted & sundry buffoons are ratcheting up every handout, entitlement, and subsidy they can to increase dependency on government.  These burgeoning government giveaways are no different than the farms, oil wells, factories, mills, and young men that were being swept into the maw of the Axis war machine. Each new handout buys strength for the Obama welfare state juggernaut.  Senator Jim DeMint stated that “A dependent voter is a dependable vote.” Obama is buying as many as he can with money as yet unearned by those yet unborn.

This is the path so disastrously trod before us by Greece, and being quickly followed by Italy, Spain, Portugal, Ireland, and Hungary.  Our future is unfolding before us in Europe this very minute.  The only preventative measure that will save us from a similar fate is to emasculate the Obama Administration in November with our votes. While we are at it, let’s broom out a few dozen Bush-era RINOs who don’t concern themselves with our future any more than the current regime.

Here is deficit spending compared to a cross country road trip.  It will give some perspective:

Now is the time for all good men to come to the aid of their country!

Just for clarification; that line did not come from the mouth of some famous leader back in history.  It originated as a typing class drill by a teacher named Charles E. Weller in about 1867.

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Obama’s Hockey Stick

“I say after eight years of this Administration we have just as much unemployment as when we started. … and an enormous debt to boot.”

These were the words of Treasury Secretary Henry Morgenthau spoken to Congress in May, 1939. Exasperated after experiencing massive unemployment for 10 years and spending heavily year after year to try to end it, Morgenthau was a beaten man. He was admitting that massive government spending and make-work projects had failed to revive the American economy. Over that period, unemployment had peaked at 25%, never went below 14%, and was 20% again when those words were spoken.

Now we have an administration in office that is mimicking the acts of the Roosevelt years with unprecedented borrowing and spending in their attempt to revive the economy. No less than Vice President Joe Biden recently stated: “We have to go spend money to keep from going bankrupt.” These people refuse to acknowledge history.

Below is a graph which I call “Obama’s Hockey Stick”. The environmental “hockey stick graph” has been discredited, but this one is frighteningly real. It shows that the US Budget Deficit has gone over a cliff; the deficit quadrupling between 2008 & 2009.

The next graph is projected future deficits based on present government budget plans. One estimate is from the Obama Administration, the other from the Congressional Budget Office (CBO):

The plunge in 2009 (which added $6,065 of debt for every living American) appears to begin to recede in 2010 and after until retracing back deeper starting in 2013. Note that the White House projections are far more optimistic than CBO. Who are we to believe; an administration attempting to cling to power, or a non-partisan budget watchdog? No matter which is right, the scenario is dire.

Based on 1933-41 experience, the above projected deficits appear a recipe for disaster. Government borrowing sucks available capital out of the system starving business of loans to expand and hire. Interest rates will rise choking off recovery of the housing market. Taxes will be raised to pay both the debt and interest; draining vital earnings of firms and individuals for decades to come.

Deficit spending does not create recovery; it only buys votes today with the fruits of future labor. Our government is selling our children’s future down a rat hole. Next time you see a baby, think seriously about apologizing in advance.

Here is a cute one that has been around a while about the TARP bailout:

Stealing is Wrong

Stealing is wrong; thieves go to jail for it. We condemn the schoolyard bully who beats up smaller kids for lunch money. Now let us look in the mirror and observe the protagonist in the greatest case if intergenerational theft in history. We baby boomers and our parents – the greatest generation – have stolen trillions from those yet unborn. Most of us will be long gone before our victims are old enough to recognize what we have done and confront us. It is the epitome of cowardice to rob the entire future from later generations and then use our deaths to escape responsibility.

A combination of unfunded entitlement programs, misguided subsidies to unsound businesses and discredited Keynesian economic deficit spending have created a disastrous level of debt.  If you have children, grandchildren, nieces or nephews you sincerely care about, you will be interested to learn the following facts:

If we were to add up the total unfunded liabilities of present “entitlement” programs (Social Security, Medicare, and Medicaid) and add the current national debt as of today, we would get a general figure of $117 TRILLION DOLLARS which our government has promised to pay and has no visible means of support to do so. A $100 bill is 4/1000 of an inch thick. A stack one inch high amounts to $25,000. One foot would be $300,000. One mile would be One Billion, Five Hundred and Eighty Four Million Dollars. $117 TRILLION adds up to a stack of $100 bills 73,863 MILES HIGH. That is three times around the earth, or 336 stacks that would reach the International Space Station! On an individual basis, that works out to only a little over 15 inches par person alive in the US today. Each and every newborn enters this world with about $396,000 in accumulated debt and incurred liabilities. Do you think your little loved ones and their generational fellow travelers will earn enough to pay that off? Apparently Congress and Presidents over the past 75 years have assumed so.

Who EXACTLY is ever going to pay for this irresponsible fiscal lunacy? Well, let’s let the kids pay it off for the rest their lives long after we who spent the dough are gone. They won’t ever be able to remove our dead hands from their pocketbooks. Our children and grandchildren will be condemned to lives of serfdom.  We will be remembered as the ones who crippled our nation with debt, spent the dreams of our children, and sold them into financial servitude.

If you have young ones that you love as I do, and you have one scintilla of self respect and common decency, you will help reverse this disastrous course before it consumes our nation and its people. How do we begin? First we must realize that in nearly all cases, “something for nothing” from the government is just flat wrong. Second, we must elect representatives who will covert the Ponzi scheme nature of entitlement programs into self funded, sustainable entities – exactly as promised when they were first introduced. Third, stop subsidizing utopian failures like ethanol, wind farms, flood insurance, and light rail. Lastly, let’s dump Keynesian economics into the ash heap of history where it has belonged since its failure in the 1930s.

According to Albert Einstein, insanity is doing the same thing over and over and expecting different results. Rebooting the New Deal, subsidizing failure, taxing success, and exposing the general fund to liabilities of poorly planned entitlement programs is folly. We owe our descendants a huge course correction before their lives are ruined by our greed and foolishness.