Wednesday, February 6, 2013

America's Debt Ceiling and Why It Matters

This explanation of the federal debt ceiling debate and why it matters to every single American citizen is critical to understand:



Unless Congress gets its act together and addresses these issues, America will face a situation where it can no longer pay its bills. The insanity over believing this path can go on and on without reducing spending is hard to fathom.

Senator Mike Lee recently proposed an amendment to the Sandy hurricane relief bill to reduce spending by a very small amount and it was shot down without so much as a fair hearing. The belief that the national credit card has no limit is flawed. Until we get members of Congress who can impose the restraints we need, the country will continue to languish economically through this decade.

Only by throwing off the shackles of government debt and spending can we unleash the innovation and creativity needed to grow us out of the debt overhang. It's called capitalism, and it's the only way we have been able to advance historically.

Social spending for entitlements has killed other European economies and is unsustainable. Just today we learned the CBO projects that in the next 10 years the federal government will be spending 53% of its budget on entitlement programs. The problem should be obvious - where do you get that much in taxes to pay for it all? The revenue has to come from somewhere, and the only "revenue" the government takes in is from taxes. Somebody has to pay for that "warm glow" that is supposed to accompany social engineering to help the poor and needy, and it's always done with OPM - and that means YOUR money.

To think we can somehow rewrite the history of socialism with a happy ending in America is folly.

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