Help Wanted: American Politicians with a Financial Spine
It doesn’t take a genius to know that America is going to go bankrupt when we spend $3.7 trillion and only take in $2.9 trillion. With the spending habits of our Congress and Administrations over the last 10 years, we have eroded the value of the USD and the faith in America to maintain fiscal responsibility. Our Federal Reserve has contributed greatly to this situation as well. We keep being fed story after story about how we can spend our way out of this and that we just need to get institutions lending and people spending again. That’s exactly what got us into the situation we are in today: too much lending and spending!
William Bennett made a great common sense contribution to CNN.com today with his post “America Needs A Budget Breakthrough“. The budget breakthrough is simple: cut spending and increase taxes. It’s exactly what nobody wants to here and what nobody wants to say. What got us here is a liberal President cloaked in Republican clothing: George W. Bush. W is much like a tax and spend liberal, just without the taxes. Boy! Can that guy sign spending bills coming from Congress.
Some might think that I’m being a bit harsh on W. However, it’s pretty clear that Congress doesn’t regulate itself. If it did, it would look at the 800 billion dollar deficit before it added to the outflow of cash. Perhaps it would benefit our government to pickup their junior high text books again (that they are so adamant about spending money) so they can educate themselves on checks and balances.
The Bush Administration should have put the brakes on spending. Instead, it went with the mentality that running a deficit is not a problem and that getting the American people to spend more would stimulate the economy… Pause for just a moment and think about it… Most Americans are under a mountain of debt. The solution to get out of the debt is to spend more money…
Obama continues this W. Bush ideology. Bush tax cuts remain. Spending remains excessive. Financially, what’s the difference between W and Obama? What change was voted into office in 2008? If anything, Obama and Congress have increased spending! And given even more tax cuts to “stimulate spending”. How many times must we get beaten over the head with the non-tax and spend myth? It doesn’t work!
I understand the reasoning of it: Stimulate spending. Stimulate small businesses so that they hire more people who consume more and generate more income for themselves that will then be taxed at the existing tax rates and everyone will be happy. It’s failed reasoning!
The solution is simple: 10% cut for all federal spending, including the so-called non-discretionary spending, and a tax increase for all tax brackets. Few people want to admit this. Certainly, nobody in Congress has the spine to risk their political career by stating such an absurd solution. And certainly nobody in Congress wants to tell the Federal Reserve that they need to quit restructuring American debt and calling it “Quantitative Easing”.