Spend and Tax! Tax and Spend! Spend, Spend, Spend! This is the clearly defined policy framework outlined in Wednesdayâ€™s political speech by President Barack Hussein Obama. As noted in a previous post, â€œBig Government IS Our Problem!â€. Unless we replace Obama and the Senate Democrats in 2012, big government, reduced personal freedoms, and unsustainable economic policies will continue to be with us for the foreseeable future. Why does the President continue to reject the bipartisan comprehensive proposal by the Debt Reduction Commission, (â€œBowles & Simpson have It Right!â€)? Canâ€™t Obama and the Democrats do math?
In President Obamaâ€™s speech presenting his 2nd new 2012 budget proposal in two months, he again, as usual, failed to exercise leadership by trashing the serious Republican debt-reduction budget plan of Paul Ryan, and by again refusing to incorporate important recommendations from the Debt Reduction Commissionâ€™s proposal. The Presidentâ€™s theme was to incorrectly accuse Republicans of taking money from Senior Citizens and Medicare to provide tax cuts for the â€œwealthyâ€. Obama knows better and, as President, should be ashamed of his attempt to mislead the American people. The Bowles-Simpson Debt Reduction Commissionâ€™s proposal is excellent and the President, the Democrats, and the Republicans should immediately and seriously pursue this comprehensive bipartisan recommendation, which was approved by a majority (61%) of the commission members. Our economic, fiscal, and debt problems cannot be solved by half-hearted and halfway measures. Everything must be on the table, considered, and acted on through an overall, thoughtful, bipartisan solution that benefits the American people not the political ambitions of the politicians.
In this regard, Obamaâ€™s speech was disappointing and pure politics, apparently intended to support his announcement to rerun for President in 2012 (hopefully unsuccessfully). The speech essentially ignored the Debt Reduction Commissionâ€™s recommendations and lacked real substance or specifics. In response to the Republicanâ€™s budget, Obama did propose to reduce the fiscal deficit from his 1st 2012 budget by promising to raise taxes on the successful job-creators in our economy – not a good idea for growth and innovation if you understand economics. The speech primarily engaged in inaccurate political demagoguery aimed at Republican Paul Ryanâ€™s 2012 budget proposal. VP Joe Biden was so impressed that he dozed off during the Presidentâ€™s delivery! The prospect of either the 1st or 2nd Obama 2012 budget proposal is potentially the same: a larger, bankrupt nanny-state in a slow-growth economy with lower than possible living standards, and a devalued currency with entitlements for non-producers supported by the few motivated and successful business managers, investors, and job-creators. Obamaâ€™s plan is an arrow aimed at the heart of entrepreneurs, innovators, and commerce.
In 2-3 short years Obama has increased government spending from an annual rate of $2.9 trillion in 2008 to an expected $3.8 trillion in 2011, increased our budget deficits by over $4 trillion and increased our National Debt by approximately 40% to nearly $14.3 trillion (over $1 trillion owed to China). In addition to this massive increase in the size and scope of government (which Obama now wants to â€œlock inâ€, not reverse), he has reduced our individual freedoms in healthcare choices (Obamacare), increased government control over our financial and consumer markets (Financial Regulation Bill including the powerful new Consumer Financial Protection Bureau), taken over private companies, halted domestic oil development, and expanded unsustainable fiscal and monetary policies. Obama is eroding virtually all the policies in which I personally believe and which made our country great, (see â€œIs Obama Our Worst President or Just the Weakest?â€). How did we ever allow ourselves to believe his campaign rhetoric and fail to see through his lack of experience, leadership, and knowledge of the workings of an economy and foreign relations?
What is now quite clear is Obamaâ€™s personal commitment to increasing an already bloated and inefficient federal government and expanding bureaucratic control over our lives and our economy. He is attempting to change our entrepreneurial spirit of independence and freedom into a socialist state of citizens dependent on government handouts for our very survival. I would not be totally surprised if Obama adopted Herbert Hooverâ€™s campaign slogan, â€œA chicken in every pot and a car in every garageâ€, with this addition: â€œPaid for by the US Governmentâ€.
We cannot continue as a great nation if we base economic policies on the failed socialistic principles of taking from those who work hard and succeed and redistributing their earnings to those who donâ€™t. Even Russia learned that Karl Marx was wrong when he said, â€œFrom each, according to his ability; to each, according to his need.â€ History has shown that socialist policies, if pursued to their ultimate end, result in reduced individual incentive, slower economic growth, lower living standards, and domination by state bureaucrats over the lives of people, (see Nobel Prize Winner in Economics,Â â€œThe Road to Serfdomâ€, F. A. Hayek). Obama and the Democrats do not appear to have learned this yet. They appear to have the elitist belief that government bureaucrats can make better decisions for the people than people can make for themselves. Capitalism and democracy arenâ€™t perfect but they are far better than a government-controlled command economy and authoritarianism.
The incentives of capitalism combined with free markets, individual freedoms, and limited government are the best ways to achieve economic growth, prosperity, improved living standards, AND to remain competitive in the global economy. Our US Constitution supposedly protects these fundamental principles but they appear to be increasingly in jeopardy through the actions of our current government. Letâ€™s stop this decay, get back to our traditional foundations, and correct the trend as soon as possible.
The Old Guy PhD