When will our President come to the realization that the government does not have any money save that which is provided by its citizens? If he understood that, he wouldn’t have said this:
“Just as it would be a terrible mistake to borrow against our children’s future to pay our way today, it would be equally wrong to neglect their future by failing to invest in areas that will determine our economic success in this new century,” Mr. Obama said at the White House.
Let me posit a translation: we shouldn’t borrow against our children’s future, so we should borrow against our children’s future. And let me add another pet peeve and that is how the statists have redefined the word “invest”. What they really mean is spend, but invest sounds so much more grown up. However, most intelligent people understand invest to mean when you put your money into something with the belief you will get all your money back plus a premium. You don’t invest in the stock market with the idea you will never see your money again and will subsequently put more money into it next year. You invest in a house with the idea that you will sell it later for more money. You don’t invest in a house if you expect it to go down in value. But our elected representatives would have you believe that pouring money down a rat hole is an investment.
Immature and Irresponsible
Like a child caught standing over his mother’s prized china lying shattered on the floor, President Obama wants us to believe it’s not his fault, no, we are going to have trillion dollar plus deficits for the next ten years because of Bush and the Republicans. He is one year into his presidency. This is his budget, not Bush’s. If he can’t handle the job he should resign and turn it over to, er, Biden? Check that. Perhaps he can just go watch television in the White House for the next three years and leave the rest of us alone. Doing nothing would cause less damage than what he has planned. He jacked up spending 24% and then “courageously” instituted a freeze on that spending for three years. Think about it. If I gave you a 24% raise on Monday and then came back on Friday and said, “Gee, I’m really sorry to have to do this, but times are really tough. I’m going to have to freeze your new salary for the next three years. Can you ever forgive me?” Could you not burst out laughing?
We’re Going to Make Some Tough Decisions…Next Year
We are in a fiscal crisis, but don’t think for a moment you are going to see any tough decisions in an election year, particularly when so many Democrats are in danger of having to find jobs in the real world. So this year is tough talk. Next year we get busy!
Democrats or Republicans or maybe the Tea Party movement is going to have to act, sooner rather than later. Here is how the federal government breaks down:
- Medicare and Medicaid — 33%
- Social Security — 21%
- Interest on the Debt — 8%
- Defense — 20%
- Non-Defense Discretionary — 18%
The first three items continue to grow with no signs of slowing and interest will really take off when the Fed stops the easy money program. Defense can shrink as Iraq and Afghanistan stabilize, but not a lot as this is still job number one for the federal government. So do you see the problem? You can thank Democratic President Lyndon Baines Johnson for the first ticking time bomb above. You can thank Democratic President Franklin Delano Roosevelt for the second ticking time bomb. You can now thank President Barack Obama for what is becoming the third ticking time bomb and that is without his Health Care, and Cap and Trade.
So how is President Obama going to “solve” this problem? By tinkering with the last item, Non-Defense Discretionary spending. But don’t worry, he will also tax those evil rich and make sure they pay their fair share. But before he goes too far down that path I have a suggestion for him:
- Listen closely to the Beatles song “Taxman“
- Ask yourself why the members of the band moved to the United States?
High tax states like New York and California are finding that a significant number of their wealthy citizenry are moving to lower tax states, exacerbating those states’ fiscal problems. If you look at the percentage of the population that pays the lion’s share of the taxes you will quickly see that if a relatively small percentage of the population, who can afford to live anywhere, actually decide to leave the United States of Tax the Rich, the resulting fiscal problem will be very, very severe. Obama can only poke his tax stick in that cage so long before he gets a nasty reaction.
We’re All Standing On the Third Rail
Social Security has been called the third rail of politics, but the reality is that we are all standing on the third rail trying to keep our balance and if anyone slips and touches the ground, we’re all fried. We have to suck up the courage to address Social Security, Medicare, and Medicaid. If we can’t slow the growth of these programs so that they take a smaller amount of the budget pie each year, we are toast. None of those programs is in the Constitution, but the liberals/progressives created them with empty promises of benefits without costs. This should have been the first clue:
“Ida May Fuller worked for three years under the Social Security program. The accumulated taxes on her salary during those three years was a total of $24.75. Her initial monthly check was $22.54. During her lifetime she collected a total of $22,888.92 in Social Security benefits.”
Ida May Fuller was the first recipient of monthly S.S. checks when she retired in 1940. She lived to be 100.
She almost got paid back in full with her first check. She got 926 times more than what she paid in. That’s a 92,600% return on “investment.” Not bad, huh?
She got back almost everything she paid in with her first check. Instead of ringing alarm bells all over the country, politicians patted themselves on the back for the great system they created. We sent Bernie Madoff to jail, why should Congress be exempt? What Bernie Madoff did was child’s play in comparison. Where he fell short was that he couldn’t force people to participate through payroll taxes, and he couldn’t print money. So why is what he did criminal and what Congress is doing not? He had to get his participants to voluntarily turn over their money. He promised returns of 40% per year. Ida may got 92,600% return on her investment.
Burn the Ships
There is the story of a general who landed on a beach to face an formidable enemy. He ordered that the ships that brought them there be burned. By doing so, he knew his men would fight ferociously because there was no escape, either they fought to win or they died. Perhaps we should do the same with Congress and President Obama. Fix Social Security and Medicare/Medicaid or you join Bernie Madoff in Cell Block “C”, for running a massive Ponzi scheme. What has kept Congress from fixing this in the past is the fear of not getting reelected. Let’s raise the stakes so that not getting reelected would pale in comparison to incarceration. It’s time our elected officials started paying attention to the people and not their perks. The disaster train is going downhill and picking up speed, headed for a cliff. It’s time ALL politicians put the country first and fixed this problem that, after all, they created. It’s fun to give out the goodies, but this is a crisis that cannot be shunned. It must be dealt with head on.
