Call me stupid if you wish, but the most intelligent speech last night didn't come from the POTUS. I didn't even bother to tune in to any of it. This morning, I downloaded Senator Mike Lee's response, and I believe (without even referencing BHO's "official" SOTU speech) there couldn't be a more well-thought-out approach than Lee's.
The only question remains whether "lofty rhetoric" from an empty suit will continue to persuade Americans or not. I pray IT WILL NOT.
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Showing posts with label deficit spending. Show all posts
Showing posts with label deficit spending. Show all posts
Wednesday, January 29, 2014
Monday, February 18, 2013
Predicting the Future of Politics
I was reminded today about an old Yogi Berraism: "Predictions are always uncertain, especially about the future."
When you look back ten years, is there anyone who could have predicted then where we would be as a nation today? So why would anyone in their right mind believe ANYONE living today could possibly predict the future of politics in this country?
That said, I will venture a guess that things as they are today will not remain for much longer politically. The Republicans are still smarting from the election of 2012. There were many surprises. The old methods of analysis of the demographics have faded away, it would seem. Conversely, there were numerous allegations of voter fraud and stealing the election in key battleground states. Whatever the facts may someday reveal, it was a shock to the conservative base to which I belong.
We face some daunting challenges. The country is broke, at least by the traditional definitions of what that means. When we spend more than we take in that used to mean "broke." We have a federal government that is out of control in its spending habits. We can’t afford what they are doing. We now have a government that is doling out benefits across a broad spectrum to half the citizens. Our private industry, once the envy of the world in productivity is now stalled and mostly stagnant compared to China's output. The Republican Party, once the champion of free enterprise, limited government and individual freedom and responsibility lost its way in the darkness of progressivism a long time ago.
Democrats were historically the party of big government. There was hope in the 90s when Bill Clinton declared the end of big government, constrained as he was by the Newt Gingrich revolution in Congress that produced a balanced budget. Now they too have lost their way. Under Barack Obama it appears they would make everyone dependent upon big government. They believe they have discovered the golden ticket to winning elections in perpetuity among voters who like the dole they receive in whatever form it takes.
Sadly, about all we got Republicans to admit in this last election cycle is that they could manage big government better than Democrats. While I at one time believed there was a clear and obvious contrast between Mitt Romney and Barack Obama, when it comes to the argument about Big Government versus small government, the argument became a blended mishmash that was nearly indistinguishable, especially in that last debate.
So I've mostly gone silent on the political front since that first week in November. Stunned and still recovering would be the best way to describe my reaction. This country has been without a true political freedom of expression and limited government party for many years.
That reality must change. The upstart "tea party" has received its death warrant from more than a few pundits, most recently from former Senator Bob Bennett, who was soundly thrashed in the Utah nominating convention in 2010, and whose seat is now held by Mike Lee (R-UT). But I have the sense predictions of the spirit it represents may be premature. I hear a lot of rebellion talk brewing under the surface in the Republican Party, at least here in Utah. You can describe "the base" any way you wish. I choose to think the true conservatives, moderates and independents who make up Utah's "base" were aroused in 2008, spoke up in 2010, and still shout, "Stop it! Reduce this out-of-control federal government! Wake up, Washington, and put a lid on the debt, the spending and the deficits that are enslaving our future generations. Reduce the taxes, abandon the regulatory agencies that are throttling down the economic engine of America. Stop it all!"
This ground swell of emotion and political action state by state made a decision to return to the Republican Party in 2010, hoping they would get it right. The grassroots elements of the tea party now seem to be opposed once again to the "establishment wing" of the Republican Party. We saw it play out in the primary elections held in the states during the last cycle. If all the establishment can give us is an argument they can be better managers of a bloated government, then my prediction is an easy one to make - those grassroots people will abandon the Republican Party, both here in Utah and nationally.
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| Senator Mike Lee (R-UT) |
So here's my bold prediction, and I've held this view for some time now: The new political reality we will see playing out in the future is no longer going to be Republican versus Democrat. That's been a carefully managed political contrivance of convenience and expediency for way too long. No, instead, it’s going to be lovers of freedom and limited government versus Big Government dependency. We may be running out of time to make a conscious choice about that. Events may compel us into that path whether we like it or not.
Back in the day, Abraham Lincoln left the Whig Party and formed the Republican Party because he and others would not compromise on slavery.
In the future people like me will leave the Republican Party because we will not and cannot compromise on freedom and limited government. Finding candidates who believe in principle over party will be the next challenge.
Monday, September 10, 2012
Congressman Allen West - Truth about Medicare
One of my all-time favorite politicians is Representative Allen West from Florida. He's in a battleground state, and getting the truth out about such an important issue to Floridians (many retirees) as Medicare reform is critical to his campaign. He's a plain-spoken truth teller. This appeared on his Facebook page this morning.
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| Congressman Allen West (R-FL) |
by Congressman Allen West on Monday, September 10, 2012 at 7:23am
·
Let’s get right to the point, there has been an enormous amount of fear-mongering and scare tactics emanating from President Barack Obama and the liberal left on the issue of Medicare.
We have a responsibility to our seniors and we shall keep it. We shall also ensure we preserve and protect not just Medicare but also the commitment to future generations of Americans, our children and grandchildren, not to bankrupt their hopes and dreams.
The Fiscal Year 2012 Social Security and Medicare Boards of Trustees report on Medicare and Social Security has these programs respectively going “belly up” in 2024 and 2033. That is unacceptable to me and should be to everyone.
Medicare as we know is doomed to fail and collapse unless courageous men and women take action -- doing nothing but complaining and demonizing is the folly of incompetents. Lying to the American people and our seniors is unacceptable.
Here is the truth. As per a report issued by the non-partisan Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) in July of this year, there are $716 billon of cuts to Medicare as part of the Patient Protection and Affordable Care Act (PPACA) in Fiscal Year 2013-2022.
These cuts to Medicare cannot be disputed and show that President Obama and the Democrats see Medicare as a “slush fund” to pay for their massive government expansion into the healthcare industry, creating 159 new government agencies and bureaucracies and further exacerbating the demise of this vital program.
These cuts include $517 billion to Part A (Medicare Hospital Insurance Trust Fund) and $247 billion to Part B (Supplemental Medicare Insurance Trust Fund) as follows:
- $294 billion payment cuts to hospitals
- $156 billion cuts to Medicare Advantage affecting 25% of seniors nationwide
- $39 billion cuts to skilled nursing
- $17 billion cuts to hospice care
- $66 billion cuts to home healthcare
- $33 billion cuts to other providers
- $11 billion cuts resulting from the Independent Payment Advisory Board (IPAB, 15-member panel of unelected government bureaucrats making Medicare price control decisions).
The plan I voted for that passed in the United States House of Representatives is something completely opposite to this horrific plan. First of all, it actually spends more on Medicare in the next 10 years.
The House of Representatives-passed budget -- and remember the Democrat-controlled the United States Senate has not passed a budget in over 1200 days -- would repeal the IPAB which is empowered to cut Medicare in ways that would jeopardize seniors’ access to care.
The House of Representatives-passed budget saves Medicare for current and future seniors. In other words, there is no change for anyone 55 years of age and older.
For those younger, when they become eligible, Medicare will provide a premium-support payment and a list of guaranteed coverage options -- including a traditional fee-for-service option -– from which recipients can choose a plan that best suits THEIR needs.
Understand that currently on average Americans are paying $110,000-$115,000 into Medicare but receive closer to $300,000 in benefits…not to mention the widespread fraud which must be tackled.
This option-based program reforms Medicare and would be determined by a competitive bidding process which doesn’t take a brain surgeon to understand will help drive down price and improve the quality of care for our future seniors.
As well, premium support, competitive bidding, and more assistance for lower income seniors, or those with greater healthcare needs ensures guaranteed affordability.
These are not talking points, but truth, objective assessment and analysis.
The question is very simple, whom shall you trust in the debate about Medicare, and the larger debate about how best to get our nation back on track?
The people who stated, “we must pass the bill in order to know what is in the bill?”
The people who said the healthcare bill will only cost the American taxpayer $940 billion only to find out that it now costs closer to $1.7 TRILLION?
The people who told you the individual mandate was not a tax, only to find out that the only way Obamacare can be declared constitutional is for the individual mandate deemed to be a tax? And as a result you have a healthcare law that entails 20 new taxes and funding for 16,000 new IRS agents.
Are you really going to trust the ideas of the President of the United States who said he would cut the deficit in half in his first term, only to have four straight years of trillion-dollar-plus deficits (the previous high was $468 billion)? The fellow who has added more debt, over $5 trillion in less than four years…more than the previous 42 Presidents combined?
Are you really going to trust the recommended approach of a fellow who said that if his trillion-dollar stimulus were passed, unemployment would never go above 8%... and that at this time it would be 5.6%?
Are you really going to trust the policies of the fellow who presented a budget that raises $1.9 trillion in new taxes in order to increase the size of the Federal Government by 53% and the budget never, ever, balances?
Lastly, are you going to trust that the affable gent who stated if he could not turn this around would have a one-term presidency -- but now demands a second term -- will stick to his word?
I have provided you the truth, now make your decision…whose ideas will you trust to protect, preserve, and honor the commitment of Medicare?
Thursday, August 30, 2012
Ten Reasons to Continue Believing in America
I've got some thoughts about the Republican National Convention ahead of tonight's acceptance speech from Mitt Romney.
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| Romney/Ryan |
Second, the parade of GOP governors who have spoken about turning around their impossible fiscal conditions in the various states that were underwater has been impressive. We've heard from Christie of NJ, Kasich of OH, Haley of SC, Pawlenty of MN, Martinez of NM, Walker of WI, and each tells a similar story. They took on impossible odds, balanced their budgets, put their public employee unions in check, and ended up with surpluses. They did it without raising taxes. And they aren't the only ones, just the ones who have spoken this week. You can't leave Daniels of IN and Perry of TX off that list. Audrey Hepburn was once quoted as saying, "There's no such thing as impossible, the very word says 'I'm possible!'"
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| The New First Couple of America |
Third, optimism is contagious. Yes, we are in dire straits financially, and most of it is of our own making, but isn't it interesting how hope always rises in America? I believe we have a lot of room left for optimism based upon what I know about the American dream. You simply cannot kill it, even though we've done a pretty good job of it these last four years. Only we can kill ourselves on that front! I hope no one thinks nothing can be done.
Fourth, I remember how discouraged I was when Jimmy Carter was elected POTUS. Four years later I was even more depressed. Carter was a certifiable genius, and he micromanaged everything he could get his arms around. He slept rarely, and when he did it was only for a few hours a night. He was an ideologue and a devout Christian who often combined his faith with his belief in government to deliver on his Christian ideals. His liberal and progressive ideology was much like Obama's. The difference between the two is Carter at least LIKED America and was trying his level best to make things better. I get the feeling Obama is doing exactly what he said he would do - substantially "TRANSFORMING" America into something I don't recognize or appreciate. Obama's vision is antithetical to the American dream.
Fifth, something we call "the American dream" is still alive. It might be on life support, but it's still struggling to be reborn based upon the assertive declarations we heard last night from Paul Ryan. This is the Ryan pledge to America, right out of his mouth from last night: "We will not duck the tough issues, we will lead. We will not spend four years blaming others, we will take responsibility. We will not try to replace our founding principles, we will reapply them." That's how you keep the American dream alive, and if these are more than mere words that can be translated into deeds, we will see America come roaring back in growth mode.
Sixth, I am aroused and encouraged because as voters we still control who’s in Washington. It's all in our hands. No one has repealed the right to vote. We can still get involved in the political election process, as Justice John Roberts suggested in his majority opinion on upholding Obamacare. We can choose who represents us in Congress and in the Executive Branch. When we exercise our right to vote, we control our own destiny. Just as Roberts reminded us, no one will bail us out of the consequences of our bad choices. We still control our own destiny.
Seventh, I will never allow myself the luxury of saying, "Well, it's too bad, that's just the way things are, I have no power to make a difference, and there's nothing I can do." Call me Pollyanna if you wish, but I will not accept the inevitability of fatalism. You can call me the stupid guy with a blog if you wish, but I still like to be reminded, as I was last night, that America still holds the promise of its dream for anyone who reaches for it.
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| Ann Romney, Mitt Romney, Condoleezza Rice |
Ninth, the overhang of government debt and spending has been killing the American dream. Perpetual taxing to pay for spending can't keep pace. Spending is the problem. Regulation throttles down the American dream, as Condie Rice reminded everyone last night. Innovation has to be embraced and encouraged no matter where it comes from and must be allowed to incubate and grow outward to become bigger and better. Government regulation is inhibiting innovation and the investment of private capital.
Tenth, we will never rev up the American engine without sustainable and renewable energy sources that are homegrown. We've got to REALLY do it this time, not just talk about it since the days of Nixon and long gas lines at the pumps. Why can't we figure out the best way to jumpstart the economy is attacking the one commodity that affects every American? We need to start drilling our own oil and capturing our own natural gas resources. I'm naive enough to believe we have been given ample energy resources by our Creator. I do not for one minute believe we are in a scarce world. Imagine what would happen to the economy if gas were priced even $1 lower today.
I reject absolutely, now and forever, the idea that the American dream is dead. I reject the lie that government provides the answers and the resources to every social ill that afflicts us. I reject the notion the government will somehow rescue, coddle and deliver me to a cushy cradle until I die. The government never manages ANYTHING better than a private business can do it. We've been setting up businesses to specialize in everything since the day the Republic was born. That's WE I'm talking about - the individual WEs in our wonderfully diverse society. WE designed government and granted it VERY limited and defined powers. WE got away from our fundamental founding principles. WE trusted Republicans and Democrats to manage our government and it got out of control. Now we have to be reminded once again. . .
WE control the American Dream. It's our time to choose again.
Sunday, August 12, 2012
Paul Ryan - there's an app for that
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| Mitt Romney announces Paul Ryan as his running mate in November |
I returned from three days out of range in the high Uintas to learn about the Congressman Paul Ryan (R-MI) pick as Mitt Romney's running mate. So much for my high-tech app on my iPhone and all the good that did me. . . It's obvious Rupert Murdoch liked the choice a lot (and he doesn't tweet much either).
I actually like this choice a lot too. My first impressions - it signals to the world that Mitt Romney is really serious about budgets and entitlement reform. There's another oh, by the way, fact that interests me - this is the first ever Mormon/Catholic pairing of two presidential election running mates in history. Ryan is only the second Catholic GOP candidate to make it to the national ticket.
In sports a lot is said about "chemistry." You've heard it again and again during the Olympics. There's no question that there's chemistry between Ryan and Romney. It's evident when they campaign together. They share a number of things in common. Despite the twenty-plus year gap in their ages, they are both data hunters. They love numbers -- Mitt Romney from his experience in business and working with economies as both a governor and a businessman, and Paul Ryan from his lifetime in studying the budget and the economy and particularly how the legislative process and our federal budget gets put together.
I've heard Paul Ryan tell the stories about when he was in high school and other kids were doing what most teenagers do, he was reading the federal budget for fun. Seriously, you can't make this up - that's who the guy IS at his core. And one of the things Mitt Romney finds particularly appealing is, Ryan is a very articulate, glib, enthusiastic guy. He can take really complex economic and budget issues and make them understandable in clear, concise language that voters can understand. He explanations don't get lost in the kind of legislative speak that you often get on Capitol Hill. And frankly, he's able to put a little more salsa sauce into it than Romney does.
This pick clearly brings this debate right where it should be focused now between the left and right. The remaining months will be about THE BUDGET finally. It will become the Romney agenda as supported by Ryan with all of his principles. That debate will be a more substantive one than a lot of the back-biting and name-calling that we've seen in the past few weeks.
Romney has sometimes been knocked as the "stiff." Paul Ryan will become the Energizer Bunny. In the last seven terms in Congress, he rocketed to the top of Republican politics. He has become the youngest chairman of the House Budget Committee ever. He has left an indelible mark on the Republican party with the Ryan budget and his bold proposals for Medicare reforms, etc. All have really energized conservatives and Republicans. And likewise, it's also angered and energized a lot of liberals and Democrats, who are as violently opposed to it as Republicans and conservatives are enthusiastically for it. This election is now set for the precise trajectory I would have hoped for months ago. The choices could not be more clear cut.
Historically, and by Constitutional dictum, all spending bills must originate in the House of Representatives. Under the Nancy Pelosi Democrat-controlled House during Obama's first two years, no budget was presented for consideration in the House. When the BHO budget was submitted it was laughed out of contention unanimously by both parties.
In 2010, when control of the House switched to the Republicans under Speaker John Boehner (R-OH), the budget chairman in the House was named and he actually presented a serious budget that called for major reforms of entitlement programs, real spending cuts, and a plan to reduce and eventually eliminate deficit spending in a reasonable amount of time. For two consecutive years the Ryan Plan, as it came be called, was passed in the House and stalled in the the Democrat-controlled Senate.
All of which means this country has been operating without a budget in place for four years. The consequences are becoming obvious - deficit spending and debt has risen dramatically with no end in sight.
The creeping progressive agenda is something Paul Ryan deeply knew and cared about, and was actually opposing vigorously, for years in the Congress.
Click here for the complete transcript of an interview with Glenn Beck in 2010, where Paul Ryan says the following:
"Where we raise our family, 35 miles from Madison, I grew up hearing about this stuff. This stuff came from these German intellectuals to Madison ‑ University of Wisconsin - and sort of out there from the beginning of the last century. So this is something we are familiar with where I come from. It never sat right with me. And as I grew up, I learned more about the founders and reading the Austrians and others that this is really a cancer because it basically takes the notion that our rights come from God and nature and turns it on its head and says, no, no, no, no, no, they come from government, and we here in government are here to give you your rights and therefore ration, redistribute and regulate your rights. It’s a complete affront of the whole idea of this country and that is to me what we as conservatives, or classical liberals if you want to get technical."
And there you have it folks - a capsule summary any thinking American can digest to invigorate and focus this campaign on where it is headed into November 6th. If you want to know what really makes a man like Paul Ryan tick, here it is fleshed out a bit more from the same interview:
"They are leading us to a social welfare state, cradle‑to‑grave society where they create a culture of dependency on the government, not on oneself. It is meant to replace the American idea. And the reason I’m doing a lot of these speeches ‑‑ the reason I’m talking about Hegel and Faber and Bismarck, you know, and what those people stood for and what they did and said and all their disciples, you know, in America is because I really believe we’ve got to have a debate and a political realignment fast because we will win the debate now. We are a center‑right country. But if they succeed in moving us faster down the tipping point where more Americans are dependent on the government than upon themselves, where a debt crisis sparked money entitlement explosion brings us to, you know, a really tough fiscal situation, then down the road we may not win that referendum and so that is why I’m trying to, you know, do what I can from my position in congress to sound the alarm bells on what this agenda really means, what this philosophy’s all about and how we need to have a referendum in America in real elections to untangle this mess they created and prevent us from reaching this tipping point where we are a social welfare state, cradle‑to‑grave society, dependent on the government that lulls us into lies of complicity and dependency versus the America idea of, you know, making the most of your life, equal opportunity, equal natural rights. You know, those are the things that got us where we are and that’s why I put this roadmap plan out there. I introduced it three years ago. I put a new version out in January. You can go to my website, Americanroadmap.org. It is a very specific economic and fiscal plan. It’s a piece of legislation that says there is an alternative to this progressivist vision for America. There is a way to reapply and reclaim the founding principles in America and still get America back and make this century another American Century appeared that’s why I’ve been, you know, speaking from the hilltop. It’s not popular and it’s ‑‑ and for my party, we can’t afford to screw up again. But we’ve got to get people to stop being worried or afraid of taking on this debate and that’s what I’m simply trying to do."
So if I am right in my assessment, we will actually have two men atop the ticket of the GOP this year who are serious about taking on the tough problems we face as a nation and doing something to correct the illegitimate course we have been pursuing this past four years.
There is only one way Romney and Ryan can lose this debate, and that is if the other side - the BHO/Joe Biden ticket - refuses to debate the case on its merits. There is one thing a radical left-wing extremist ideologue can't stand, and it's the one thing both Mitt Romney and Paul Ryan are really, really good at:
MATH!
Saturday, July 14, 2012
Political Quote of the Day
From the pen of Bill O'Reilly, writing today at Townhall:
In 2012, America is not bedeviled by inflation, but we are stuck in the economic mud. Under Obama, government spending has reached record levels, and in three years, Obama has added about 130,000 federal workers to the payroll: more than the number Reagan added in five fewer years. It is breathtaking.
And now Obama wants to jack up tax rates on the affluent all over the place. Income, capital gains and dividends all will be taxed at a significantly higher rate if Congress goes along with the president. Again, this is the exact opposite of what Reagan did.
What Obama hopes to accomplish is hard to ascertain. The feds will derive about $85 billion in extra revenue a year if the president's proposed tax hike is passed. But listen to this: The feds spend $85 billion every eight and a half days, according to the Treasury Department. Talk about putting your finger in a leaking dike.
* * *
I really have come to believe President Barack Obama must think the American people are stupid. Since they make the case even better than I ever could, consider this piece of writing from Brietbart on the broken pledges of the POTUS, not the candidate Obama, but when he was president.
The National Debt has now increased more during President Obama's three years and two months in office than it did during 8 years of the George W. Bush presidency.
The Debt rose $4.899 trillion during the two terms of the Bush presidency. It has now gone up $4.939 trillion since President Obama took office.
The latest posting from the Bureau of Public Debt at the Treasury Department shows the National Debt now stands at $15.566 trillion. It was $10.626 trillion on President Bush's last day in office, which coincided with President Obama's first day.
The National Debt also now exceeds 100% of the nation's Gross Domestic Product, the total value of goods and services.
Mr. Obama has been quick to blame his predecessor for the soaring Debt, saying Mr. Bush paid for two wars and a Medicare prescription drug program with borrowed funds.
The federal budget sent to Congress last month by Mr. Obama, projects the National Debt would continue to rise as far as the eye can see. The budget shows the Debt hitting $16.3 trillion in 2012, $17.5 trillion in 2013 and $25.9 trillion in 2022.
This POTUS could not be more toxic than he is.
Saturday, October 15, 2011
"Read 'em and weep"
The favorite expression around the Sigma Chi house in college after a winner in a poker game laid down his cards, was "Read 'em and weep."
We're two years into the vast economic and social re-engineering experiment that was labeled as Obamacare, and now we are learning the real costs. The winners then aren't so sure today. This week the Obama administration admitted its math was flawed in its assumptions about a key provision of the bill. The "Community Living Assistance Services and Supports" proved to be unsustainable. It was a disability program actuaries panned even before Obamacare passed, but it was thrown into the final bill, some say, as a tribute to its champion, Senator Ted Kennedy.
Nancy Pelosi once famously said, "We have to pass this bill so we can find out what's in it." Stunning! And now we know. The winners and the losers in the Obamacare fight are all weeping now:
OBAMACARE
By The Numbers
$2.6 Trillion: | True Cost Of ObamaCare Once Fully Implemented. (Office Of The Speaker Of The U.S. House Of Representatives, Report, 1/6/11) |
$701 Billion: | Amount ObamaCare Will Add To The Deficit. (Office Of The Speaker Of The U.S. House Of Representatives, Report, 1/6/11) |
$575 Billion: | Cost Of Medicare Cuts In ObamaCare. (CMS Chief Actuary Richard S. Foster, Memo, 4/22/10) |
$491.7 Billion: | Taxes Raised In ObamaCare. (Letter to Speaker Nancy Pelosi, 3/18/10;Joint Committee On Taxation, 3/2/10) |
$450 Billion: | Cost Of ObamaCare “Glitch” Allowing The Middle-Class To Qualify For Medicaid.(Avik Roy, “The 450 Billion Glitch: 3 Million Extra Middle-Class Americans Eligible For Medicaid Benefits,” Forbes, 6/21/11) |
$401 Billion: | Increase In Federal Entitlement Spending From ObamaCare. (“The Budget and Economic Outlook: An Update,” Congressional Budget Office, August 2010) |
$210 Billion: | Amount Of Income Taxes Collected Over 10 Years Through ObamaCare.("Estimated Revenue Effects Of The Manager's Amendment To The Revenue Provisions Contained In The 'Patient Protection And Affordable Care Act,"Joint Committee On Taxation Report, 3/20/10; Editorial, “Taxes Upon Taxes Upon…,” The Wall Street Journal, 7/11/11) |
$145 Billion: | Cost Of ObamaCare Cuts To Medicare Advantage. (CMS Chief Actuary Richard S. Foster, “Estimated Financial Effects Of The 'Patient Protection And Affordable Care Act,' As Amended,” Memo, 4/22/10) |
$80 Billion: | ObamaCare’s CLASS Program “Zombie” Savings In The Federal Budget. (Ricardo Alonso-Zaldivar, “‘Zombie’ In The Budget: Long-Term Health Care Plan,” The Associated Press, 10/8/11) |
$60 Billion: | Health Insurance Tax On Businesses. ("Estimated Revenue Effects Of The Manager's Amendment To The Revenue Provisions Contained In The 'Patient Protection And Affordable Care Act,"Joint Committee On Taxation Report, 3/20/10; Editorial, “Taxes Upon Taxes Upon…,” The Wall Street Journal,7/11/11) |
As I suggested in an earlier post last week, no one really can predict the future, but I know this much - if Obamacare is not struck down by the Supreme Court on the legal issue of the individual mandate, it must be defunded, repealed and buried deeply in the bowels of Mother Earth before its costs bury us as a nation.
Thanks to Senator Mike Lee's website for this summary.
Sunday, September 18, 2011
How Miserable Are You?
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| "So I says to Barack, 'I knew Abe Lincoln, and you ain't no Abe Lincoln'" |
It was Abraham Lincoln who once observed, "People are just about as happy as they make up their minds to be." In other words, happiness is a choice. Do you believe it?
During the Reagan-Carter campaign of 1979, somebody came up with something called the "misery index." It's the sum of the inflation and unemployment rates, two nasty statistics when totaled together equate to economic misery. You'll be relieved to know the Obama administration's misery index hasn't reached the highs hit by Jimmy Carter's.
It's hard to believe but I still remember, so I looked it up today to be sure. Carter's yearly average of 20.8 was reached by 1980 and was the all-time modern high. Obama's administration hit a monthly rate of 12.8 in June of this year. Just so you can compare and remember the "good old days," the average misery index over George W. Bush's two terms was only 8.1, and Bill Clinton's administration was even lower at 7.8.
In one of their debates toward the end of the campaign Reagan quipped, "Are you better off today than you were four years ago?" He closed the deal with the American people, who decided they weren't and handed Reagan the presidency, making Jimmy Carter the poster child for one-term failure.
There are many today who are comparing the Obama administration to the Carter administration and coming up with the obvious similarities. Many of us hope the crowning likeness will be the one-term comparison.
However, nobody in America wins when the president is weak. I had at least hoped for the best a few months after Obama took office, but his steadfast adherence to his flawed Keynesian economic model is killing us. The lurch to the left went beyond traditional Democratic tax and spend philosophy. It went right off the charts into Democratic Socialism. His stimulus spending to the tune of $825 Billion did nothing. You can ignore all the rhetoric about "creating jobs" or "saving jobs." When the August number came in there were zero jobs created, and that hasn't happened in America in a very long time.
Add to it something called the "Public-Private Investment Partnership," nothing more than Obama's version of Bush's TARP, and all that happened was more toxic assets were transferred to the government, which of course translates into the taxpayers - YOU!
Remember how successful "Cash for Clunkers" was? Remember nationalizing the automotive industry to rescue it from bankruptcy? Somebody at Ford should be crowned King of Captialism for refusing the government handout when GM and Chrysler are still owned principally by the taxpayers.
Remember Obamacare? I have hated the idea since it was first introduced, largely because of the staggering costs involved. It reformed little and the cost was extraordinary in a time when America could afford it least. We won't know what its full effect will be until (and if) it takes root. I'm betting the SCOTUS will strike it down as unconstitutional because of the individual mandate. Whatever that eventual outcome, the short-term effect has been businesses by the droves are getting out of the business of providing private healthcare coverage for their employees. If you've loved Medicare and Medicaid, then you're just going to love government-sponsored health insurance exchanges.
Remember the national debt clock? It's still ticking at a more rapid pace now than ever before in our history. It has now exceeded $14 Trillion and will hit $15 Trillion by the end of September (yes, this month). When it happens, don't expect a flurry of headlines, because the story will be tucked away somewhere on page 10 below the fold. It will be the first time since World War II that the debt will exceed the GDP.
Remember the first downgrade on our debt in our history from "AAA" to "AA?" Unless Congress takes substantive steps to change course this fall in the supercommittee, the credit markets will continue to react negatively.
Remember "tax the rich?" He's still thumping that theme as recently as yesterday in his stump speech. I was heartened yesterday to hear a report that thirty-six senators from both parties are now calling upon the super committee to enact sweeping tax reform as part of their work product. Knock on wood. With an approval rating of 12%, Congress had better do SOMETHING, ANYTHING to demonstrate their willingness to do the bidding of the American people who employ them. The polling data is suggesting there are very few who are inclined to send the same members of Congress back in 2012 unless they prove worthy of their hire.
We're running up debt for the next generations of Americans that will prove to be impossible to repay unless the growth engine in our economy is jump-started and begins to hum again.
There are those who say it isn't fair to hold Obama or any POTUS to the same standard as private business measurements for success. Honestly, why not? If he were CEO of America, Inc., no board of directors worth its salt would retain him given his record. Here's a stunner for comparison: This "recovery" has been underway for two and half years and employment has actually dropped by a full percentage point. The only other president in American history to have witnessed negative job growth for a comparable period is Herbert Hoover. I'm certain when Barack Obama took office he wanted to be considered an historic president, but I doubt this is what he had in mind. Nor did any of us.
Despite the clear record, he continues to blame George W. Bush for the mess we're in. I have stated repeatedly it is more complicated than blaming your successsor. Presidents, let me say it once again, DO NOT create jobs. Their policies, however, provide either an environment for job growth or an environment that stifles job growth. So what does this failing president flail away at? The same failed European economic model that won't work, and he keeps doubling down on his bets.
Obama might do well to take a page out of Bill Clinton's playbook. Clinton lost control of both houses of Congress in 1994. But Clinton the pragmatist, wanting to be re-elected, decided a 180-degree turn was in order. He put Al Gore in charge of downsizing the federal government and he worked with Republicans in Congress. Together they passed the North American Free Trade Act, they reformed a badly broken welfare system, and (listen for the drum roll) they enacted and achieved a balanced budget!!!
It's been done before. When correct principles are applied they work.
Barack Obama is no Bill Clinton, and he's certainly proven he's no Abe Lincoln, but he needs to pick a new path and try something dramatically different than giving another speech before a joint session of Congress about all the jobs he's going to create with government debt and deficit spending.
I just hope it's not too late before he becomes another Jimmy Carter.
On the other hand, there are only thirteen and a half months left until the next election. Maybe we'll all just have to be patient.
Until then, I choose happiness instead of misery.
Thursday, September 15, 2011
Mike Lee Says Compromise NOT a Solution
Utah's freshman Senator Mike Lee (R-UT) makes it clear in this interview why this next election in November 2012 is a national debate with clearly drawn differences in the two philosophies for governing America. One path says government spending and ongoing expansion of the federal government is desirable. The other path suggests to do so would be catastrophic.
Never in my memory has the debate been more clearly defined by President Obama and whichever Republican candidate emerges as the eventual nominee.
If the economy were functioning and growing at an annual rate of around 4%, all the anxiety over government spending and deficit spending goes away because the growth of the economy is a reality that would cure all evils. That's why it is imperative the federal government adopt policies that will grow the economy, and not the debt, not the size of government, and not the deficits.
As Lee points out in his new book The Freedom Agenda, we have reached a point as a nation that we must now consider Constitutional restraints through the Balanced Budget Amendment.
Every time I listen to Senator Lee I ask myself, "Do these ideas rise to the level of extreme or radical?" Call me stupid, but they sound reasonable and immediately actionable. The only question before us as a nation is which path we will choose by electing the candidates who represent the right policies we need to adopt.
In another appearance, Lee reiterates the same points:
Never in my memory has the debate been more clearly defined by President Obama and whichever Republican candidate emerges as the eventual nominee.
If the economy were functioning and growing at an annual rate of around 4%, all the anxiety over government spending and deficit spending goes away because the growth of the economy is a reality that would cure all evils. That's why it is imperative the federal government adopt policies that will grow the economy, and not the debt, not the size of government, and not the deficits.
As Lee points out in his new book The Freedom Agenda, we have reached a point as a nation that we must now consider Constitutional restraints through the Balanced Budget Amendment.
Every time I listen to Senator Lee I ask myself, "Do these ideas rise to the level of extreme or radical?" Call me stupid, but they sound reasonable and immediately actionable. The only question before us as a nation is which path we will choose by electing the candidates who represent the right policies we need to adopt.
In another appearance, Lee reiterates the same points:
Saturday, September 3, 2011
The Balanced Budget Amendment, coming soon
Roll up your sleeves, America. It's time to go back to work and stop waiting on the Washington establishment to solve our problems. The failed policies of this administration are numerous. This month's jobs report, released yesterday, confirms idle labor is still sitting on the sidelines with ZERO jobs added to the economy. It's time to put Washington in a debt and spending straight jacket from which it will never again be released. There are two prominent GOP versions of the Balanced Budget Amendment that will be floated to both the House and the Senate, requiring a 2/3 majority to send it to the states for ratification.
In 1995, a BBA failed to win approval in the Senate by only one vote. Imagine where we might be today if only one Senator had voted the other way. We certainly would not be in the debt debacle we are.
It is imperative we change the trajectory we are on as a nation. All that is necessary is that Washington STOP coming up with solutions that don't work, get out of our way, and let US as the sovereign people we are step forward and put an end to elected representatives who are unresponsive to our desires. Here's a thoughtful approach to doing things the right way. Further, there is incontrovertible evidence the regulatory environment under the Obama administration has been stifling.
Rep. Bob Goodlatte (R-VA), the sponsor of two leading GOP versions, makes the case for the necessity of the BBA in a weekly Republican address airing Saturday that an amendment would create jobs by putting Congress on a spending diet. It is clear Americans have finally tuned out this president. What is becoming obvious to even the casual observer is that speech making by this president isn't demonstrating the kind of leadership for which Americans yearn and expect. Obama may be reaching a point where no one cares anymore what he says. His deeds have not matched his rhetoric, and that's record his opponents will increasingly jump on then pile on. When he speaks next week about his plan for creating new jobs, we would be well-advised to look elsewhere for our answers, since nothing he has promised has come to pass. Presidents do not create new jobs. Their policies either enhance or destroy the incentives for those who do. Thus far he has done nothing but paralyze private capital investment into the economy.
Republicans, of course, maintain by ending attempts at Obama-style stimulus spending we can finally put the nation back to work. To get the BBA passed, it will take a bipartisan effort, setting party politics aside and keeping it on the sidelines. We need representatives in Washington who will finally decide to do what is right for America's future, not their own individual interests.
Be patient. If Congress fails to pass the BBA this fall, and the "super committee" fails in its mission to send a serious signal to the rating agencies that we are serious about managing our debt and deficits, then Americans will elect those who will get it done in the next Congress following the 2012 election. We really have no other choice. That's why this next election is so critical to our collective welfare as Americans. We are at a crossroads. We can no longer have it both ways. Decision time is upon us.
“The president’s ‘stimulus’ spending has proven counterproductive,” Goodlatte says. “This fall, both the House and the Senate will vote on a Balanced Budget Amendment to the Constitution that would force Congress to spend only what the government takes in… That doesn’t just mean a fiscal house in order: it also means more certainty for the private sector and a better environment for job creation.”
Goodlatte calls on Obama to back a balanced budget amendment in the president's Sept. 8 jobs speech to Congress. However, one should acknowledge this president is tone deaf to anyone who dares to oppose his point of view. Don't expect that tiger to change its stripes in yet another speech filled with empty rhetoric and unrealistic promises involving more government spending.
Why would we give the federal government a free pass on spending and running up unconscionable deficits, when in 49 of the 50 states their individual state constitutions mandate a balanced budget?
In 1995, a BBA failed to win approval in the Senate by only one vote. Imagine where we might be today if only one Senator had voted the other way. We certainly would not be in the debt debacle we are.
It is imperative we change the trajectory we are on as a nation. All that is necessary is that Washington STOP coming up with solutions that don't work, get out of our way, and let US as the sovereign people we are step forward and put an end to elected representatives who are unresponsive to our desires. Here's a thoughtful approach to doing things the right way. Further, there is incontrovertible evidence the regulatory environment under the Obama administration has been stifling.
Rep. Bob Goodlatte (R-VA), the sponsor of two leading GOP versions, makes the case for the necessity of the BBA in a weekly Republican address airing Saturday that an amendment would create jobs by putting Congress on a spending diet. It is clear Americans have finally tuned out this president. What is becoming obvious to even the casual observer is that speech making by this president isn't demonstrating the kind of leadership for which Americans yearn and expect. Obama may be reaching a point where no one cares anymore what he says. His deeds have not matched his rhetoric, and that's record his opponents will increasingly jump on then pile on. When he speaks next week about his plan for creating new jobs, we would be well-advised to look elsewhere for our answers, since nothing he has promised has come to pass. Presidents do not create new jobs. Their policies either enhance or destroy the incentives for those who do. Thus far he has done nothing but paralyze private capital investment into the economy.
Republicans, of course, maintain by ending attempts at Obama-style stimulus spending we can finally put the nation back to work. To get the BBA passed, it will take a bipartisan effort, setting party politics aside and keeping it on the sidelines. We need representatives in Washington who will finally decide to do what is right for America's future, not their own individual interests.
Be patient. If Congress fails to pass the BBA this fall, and the "super committee" fails in its mission to send a serious signal to the rating agencies that we are serious about managing our debt and deficits, then Americans will elect those who will get it done in the next Congress following the 2012 election. We really have no other choice. That's why this next election is so critical to our collective welfare as Americans. We are at a crossroads. We can no longer have it both ways. Decision time is upon us.
“The president’s ‘stimulus’ spending has proven counterproductive,” Goodlatte says. “This fall, both the House and the Senate will vote on a Balanced Budget Amendment to the Constitution that would force Congress to spend only what the government takes in… That doesn’t just mean a fiscal house in order: it also means more certainty for the private sector and a better environment for job creation.”
Goodlatte calls on Obama to back a balanced budget amendment in the president's Sept. 8 jobs speech to Congress. However, one should acknowledge this president is tone deaf to anyone who dares to oppose his point of view. Don't expect that tiger to change its stripes in yet another speech filled with empty rhetoric and unrealistic promises involving more government spending.
Why would we give the federal government a free pass on spending and running up unconscionable deficits, when in 49 of the 50 states their individual state constitutions mandate a balanced budget?
Wednesday, August 3, 2011
The Penny Plan - Way Too Sensible
The Democrats have no interest in putting forward any plans to cut the spending, but here's another Republican who's got a plan that works.
Watch for Congressman Connie Mack (R-FL) in the days ahead.
He makes so much sense it's scary because it's so sensible.
Watch for Congressman Connie Mack (R-FL) in the days ahead.
He makes so much sense it's scary because it's so sensible.
Tuesday, July 26, 2011
How Big is $15 TRILLION?
Last night a grandson was watching the President on TV with me. He heard me muttering in amazement at the way the TRILLION dollar numbers just seemed to roll off the lips, but he had no concept of what he was hearing. So he asked, "Grandpa, how much is $15 TRILLION?"
We went to the computer and this is what we found. It kind of helps to visualize it since it's so difficult to grasp it in words alone.
The fact that amazes me is we actually are having an ideological war of words about it between the parties. Doesn't everyone agree that we have to stop the runaway freight train of spending NOW? It should be a no brainer. Today the CBO scored Boehner's plan and discovered it fell short in actual results of the $1 Trillion he was seeking in cuts, so the vote on his bill is going to be delayed until they can come up with more cuts.
At least someone is doing some serious counting, but as you can see from the illustration, that's a lot of counting!
We went to the computer and this is what we found. It kind of helps to visualize it since it's so difficult to grasp it in words alone.
The fact that amazes me is we actually are having an ideological war of words about it between the parties. Doesn't everyone agree that we have to stop the runaway freight train of spending NOW? It should be a no brainer. Today the CBO scored Boehner's plan and discovered it fell short in actual results of the $1 Trillion he was seeking in cuts, so the vote on his bill is going to be delayed until they can come up with more cuts.
At least someone is doing some serious counting, but as you can see from the illustration, that's a lot of counting!
Saturday, July 23, 2011
Showdown at the NOT OK CORRAL
Further evidence that things are seriously broken in the White House. Until this president is retired by the voters in November 2012, the great divide will continue. The evidence could not be more clear in these two dueling news conferences last night:
A Rasmussen poll released yesterday reflects the frustration in the country among likely voters. No matter which Republican candidate is pitted against Obama in the poll, he fails to muster support higher than 47%. The election of 2012 is shaping up as a referendum on the incumbent, and right now they are labeling him a lame duck president and he is being treated as such because of his failure in leadership. Even his liberal base is eroding because his most ardent supporters are seeing him now for what he is. Here's another story with the same conclusion.
The result that was most telling to me was the matchup with Ron Paul -- Obama 41%, Paul 37%. I could be satisfied with ANY Republican candidate right now, and apparently the rest of the country is feeling exactly the same.
And oh, by the way, don't underestimate the influence of a man you've never heard of before on the current discussion over taxes and the debt ceiling. Grover Norquist has marshaled members of Congress who have signed his pledge to NEVER raise taxes anytime, anywhere on anybody.
Bohener is not abdicating his duty and his oath of office -- he's merely excluding the president from the discussion and putting him right where he belongs -- on the sidelines -- while Congress takes the leadership role out of his hands..
WASHINGTON, DC (Jul 23)
A Rasmussen poll released yesterday reflects the frustration in the country among likely voters. No matter which Republican candidate is pitted against Obama in the poll, he fails to muster support higher than 47%. The election of 2012 is shaping up as a referendum on the incumbent, and right now they are labeling him a lame duck president and he is being treated as such because of his failure in leadership. Even his liberal base is eroding because his most ardent supporters are seeing him now for what he is. Here's another story with the same conclusion.
The result that was most telling to me was the matchup with Ron Paul -- Obama 41%, Paul 37%. I could be satisfied with ANY Republican candidate right now, and apparently the rest of the country is feeling exactly the same.
And oh, by the way, don't underestimate the influence of a man you've never heard of before on the current discussion over taxes and the debt ceiling. Grover Norquist has marshaled members of Congress who have signed his pledge to NEVER raise taxes anytime, anywhere on anybody.
Bohener is not abdicating his duty and his oath of office -- he's merely excluding the president from the discussion and putting him right where he belongs -- on the sidelines -- while Congress takes the leadership role out of his hands..
WASHINGTON, DC (Jul 23)
House Speaker John Boehner (R-OH) issued the following statement regarding ongoing work on a deficit reduction package:
“As I said last night, over this weekend Congress will forge a responsible path forward. House and Senate leaders will be working to find a bipartisan solution to significantly reduce Washington spending and preserve the full faith and credit of the United States."
Friday, July 22, 2011
Political Quote of the Day
On the heels of another announcement of mass layoffs this week (23,000 combined from Cisco, Lockheed Martin and Borders, after 41,432 planned cuts in June, plus 142,000 government jobs lost so far this year), I stumbled over this quote this morning:
Howard Davidowitz is bipartisan in his criticism, calling the U.S. political system "dysfunctional and deranged."
Still, the restructuring expert is a longtime and vocal critic of President Obama. Today, he said:
"There has never been a situation in my lifetime where a guy increases the debt by 40%, GDP growth is on the way down, Food Stamps are up, millions more are unemployed -- and to accomplish this we spent $4 trillion."
Further evidence we are indeed living in unprecedented times.
WASHINGTON – Following a procedural vote to prevent the “Cut, Cap, and Balance Act” from coming to the Senate floor, Senator Mike Lee released the following statement:
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| Howard Davidowitz |
Still, the restructuring expert is a longtime and vocal critic of President Obama. Today, he said:
"There has never been a situation in my lifetime where a guy increases the debt by 40%, GDP growth is on the way down, Food Stamps are up, millions more are unemployed -- and to accomplish this we spent $4 trillion."
Further evidence we are indeed living in unprecedented times.
WASHINGTON – Following a procedural vote to prevent the “Cut, Cap, and Balance Act” from coming to the Senate floor, Senator Mike Lee released the following statement:
“Today, Majority Leader Harry Reid used procedural tactic to prevent a vote on a bill that is supported by two-thirds of the country. It is shameful, despicable, and an abuse of this chamber. We weren’t even allowed sufficient time to debate the one bill in Congress that would address the country’s most immediate challenges.
“The Democrats have blocked a vote for now, but the fight is not over. I will continue to make sure ‘Cut, Cap, and Balance’ receives a proper up or down vote in the Senate.”
Sunday, July 17, 2011
Debt Ceiling Deal Pending
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| Negotiations continue over debt ceiling and spending cuts |
Politics is a treacherous but ever-so-predictable business these days. What seemed within reach a few days ago to stop the insanity over debt and spending is now slipping through the cracks of the time-honored traditions of political compromise.
Personally, I favor the ideologically pure notions presented by the "Cut, Cap and Balance" idea coupled with the Lee/Hatch/Cornyn (et. al.) Balanced Budget Amendment, but now the "smart money" tells us there is no chance of passage. They wanted no increase in the debt ceiling without an up or down vote on the BBA. It's the members of the Utah congressional delegation who are leaders in the fight, specifically Hatch and Lee in the Senate and Jason Chaffetz in the House. Watch for the tea-party-dominated House to pass Cut, Cap and Balance this week, then watch it die in the Democrat-laden Senate.
The reason it isn't going to happen, apparently, is because the ideology on the other side in the personification of Barack Obama senses no urgency and wants tax increases on the rich. "We don't need a Balanced Budget Amendment," he says, "We just need to do our jobs." Well, we've all seen how that has worked out. "Doing our jobs" on his watch has included running up record debt, deficits, stimulus bills that didn't stimulate anything, the biggest entitlement program in the history of man, threats of more taxes as far and the eye can see, printing worthless currency and regulating everything that moves in the economy. They don't seem to be aware that tax increases on the wealthiest Americans just isn't enough to close the gap mathematically. If you confiscated, not merely taxed, that wealth it still wouldn't be enough. Perpetuating the myth that you can tax the rich to help the poor is what I've labeled "The Great Big Fat Lie." (Click the link to my post on April 16, 2011, and watch the embedded video).
Yes, blame Bush too -- government programs, unfunded wars, TARP, etc. -- so don't single out the criticism for Obama alone. But you can top all that history with a presidential threat just last week that Social Security recipients might not get their checks in August unless Congress comes to heel at his command. That kind of threat, first, isn't very presidential, and second, it's a big fat whopping lie.
The lies are piling up with every news conference.
Despite it all, there will be a budget spending deal along with an increase in the debt ceiling struck here in the next few days; Washington working in its "finest hour," some will yet say. However, it will be a watered down deal and the questions will remain to haunt us going forward: Will whatever they come up with satisfy the rating agencies, Moody's and S&P as being "sufficient" to stave off a downgrade of America's "AAA" bond rating? Both agencies upped the ante last week in the political poker game, by signalling they will not hesitate to degrade the rating if meaningful progress is not achieved. A downgrade in the bond rating of America would mean higher borrowing costs for everyone.
I suspect Americans, however, are growing weary of the same old rhetoric and class warfare struggles -- "tax the rich for the benefit of all who aren't." Tax revenues have been historically low these last three or four years because of the collapse of the financial markets in the wake of the toxic mortgage securitization marketplace, and this much is clear in hindsight: the federal government promoted that market and its interventions have proven catastrophic in the aftermath.
There have been reams of paper and gallons of newspaper ink spilled over whether or not to raise the debt ceiling. When he was a freshman senator from Illinois, Barack Obama assailed George W. Bush for lack of leadership in coming to Congress to raise the debt ceiling back then, and now as POTUS, Obama rides to the rescue once again proclaiming the end of the world as we know it unless he gets a big budget deal to carry him through the 2012 election. He doesn't really want to have to deal with this question of fiscal responsibility and accountability between now and then. Truth is, the Republicans voted many times under George Bush to raise the debt ceiling. The hypocrisy on both sides is stunning, and they expect Americans to keep buying their explanations? I don't think so.
In the back and forth for over two years now, one detail is seemingly lost. The President has a Constitutional duty to propose a budget each year. This president, however, has failed to do so for two and a half years, abdicating his responsibility to Congress and carping over every proposal that comes his way. John Boehner, Speaker of the House, complained the other day that negotiating with Obama is like trying to strike a deal with Jell-O; he's a little slippery and wiggly. So much for golf diplomacy.
The historic election of 2010 notwithstanding, where Obama was handed an overwhelming rebuke by the voters, political sea changes are slow in translating into reality and seemingly impossible to make stick. One thing is clear: this president thinks he's got the voters with him. He was bold enough to quote a fuzzy poll result the other day, claiming 80% of Americans favor a tax increase on the wealthy. Really? Whether it's true or not, he absolutely believes he is doing the right thing for America and the people are on his side. That's the belief of an avowed extremist, and one could say the same thing about the other end of the spectrum perhaps.
So this morning it appears likely we will see the classic result coming from Washington once again. Negotiations over political positions where both sides can claim some watered down portion of victory. Political maneuvering continues to plague our national debate. This morning it is reported Paul Ryan, the House's Budget Chief, who actually had the courage to propose a sound but politically suicidal budget a few months ago, and got it passed in the House, has been lecturing the freshmen House members about the futility of pressing their case not to raise the debt ceiling. The voters back home won't be pleased who sent them there to put a cap on the spending spree and to take away the blank checks from the president, but until there is a majority in both houses of Congress and the present occupant of the White House is expelled, there are going to be half-measures that please no one.
There are about four options that are still on the table that can be identified by their biggest supporters.
- The McConnell plan would force Barack Obama to take some very uncomfortable public positions but, policy-wise, would likely mean the fewest amount of real spending cuts.
- The plan Eric Cantor is pushing for is a short-term small-cut deal that would cut much less than the "grand bargain" and would force more debt ceiling votes and negotiations before the 2012 election.
- Barack Obama is negotiating for a medium-term cuts-and-taxes deal that would solve the issue past 2012.
- And finally, there's the John Boehner-backed "grand bargain" that would contain up to a reported $4 trillion in cuts.
The average American doesn't wake up every morning wondering whether or not the planet has been saved from a potential debt crisis in the USA. Instead, they awaken to another day oblivious to the issues their elected representatives are tasked to tackle. Even with all the angst on display in the election of 2010, it appears we're back to business as usual in Washington, and both sides are dug in until they find the partial solutions they are so adept at crafting together -- wait for it, it's coming -- "This isn't a perfect deal, but it's the best we could do under the circumstances."
There is a titanic struggle for the future unfolding before our eyes, however, that looms ahead. As anyone who carries enormous debt obligations will tell you, freedom is curtailed with debt and spending money at a rate that cannot be sustained. America has always been among the leaders in freedom in virtually every category, but we are threatened by our self-inflicted cancer of debt and deficits:
We are under siege and sometimes don't even know it or understand what's at stake. It's true for individuals, businesses and countries. We may not see the effects immediately, which is why life appears to go on as normal each day, but the underlying erosion is taking place imperceptibly but unrelentingly.
Until the political gimmickry stops and we put this federal government in a straight jacket that binds future congresses and the president to fiscal sanity, we are in bondage even if we don't see the velvet shackles binding our wrists and ankles. I remember a wise old businessman telling me years ago, "Borrowing money is like wetting the bed -- it keeps you warm for awhile, but eventually you have to get up and change the sheets."
I don't really care much for political parties and their partisan rhetoric that merely keeps them wetting the beds. As I've said before, what we need now are patriots who can rise above party and stop the insanity by changing the course of America. If we can't do it ourselves, the consequences will overtake us.
One final point: The underlying issue distills to whether we should have a larger and more expensive federal government. Over many years, federal spending has averaged about 20 percent of gross domestic product.
The Obama Democrats have raised that to 24 or 25 percent. And the president's budget projects that that percentage will stay the same or increase far into the future. The decision point has arrived at our doorstep. In the process, the national debt as a percentage of gross domestic product has increased from a manageable 40 percent in 2008 to 62 percent this year and an estimated 72 percent in 2012. And it's headed to the 90 percent level that economists Kenneth Rogoff and Carmen Reinhart have identified as the danger point, when governments face fiscal collapse. Those are the stakes and the politicians are still posturing.
I'm still waiting for the serious debate.
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