Tag: Budget

Save America – Elect Romney & Ryan in November!

G’Day!

Romney and Ryan! Hooray! The Republicans have chosen intelligent, honest, dedicated, and responsible candidates for President and Vice President of our country. Unfortunately, Obama and Biden are currently still in office. They cannot be replaced fast enough for me. The longer Obama and the Democrats continue in power, the greater the decline of America. In my opinion, a vote for Obama and the Democrats is suicidal for our exceptional nation. I trust and believe that the American people are wise enough to see through the rhetoric of deception, division, and blame and recognize the true economic and social failures of Obama’s centrally planned socialism. In November we must vote Obama and enough Democrats out of office to save our country from financial collapse under a mountain of unsustainable debt, which in the next week will reach $16 Trillion or over $50,000 for every man, woman, and child in America. This is an increase of approximately 60% since Obama was elected and is absolutely intolerable!

The team of Romney and Ryan are real Americans who personally share and support the opportunities and values inherent in “The American Dream”. They believe in the values expressed in “The Declaration of Independence” of equal opportunity for all to Life, Liberty, and the Pursuit of Happiness. They further believe in strong national defense, individual freedom, free market capitalism, sound fiscal and monetary policy, freedom of religion, and Constitutionally limited government. Unlike Obama, Romney actually has a business-friendly five point plan to correct our fiscal and debt crisis, create millions of new private-sector jobs, save Social Security & Medicare, and get America back on a path to prosperity. Fortune Magazine summarized the five key areas in the plan as follows: “(1) Aggressively promote domestic energy development, especially fossil fuels. (2) Expand the market for U.S. goods overseas by negotiating new trade agreements and standing up to China on intellectual-property and currency issues. (3) Improve workforce skills by transferring job-training programs to the states and going after teachers’ unions, which, he says, stand in the way of school choice and better instruction. (4) Attack the deficit through budget cuts, not tax increases. And (5), reshape the regulatory climate to “encourage and promote small business” rather than swamp it. That last item covers his most consistent and passionate campaign pledge, the repeal of the Affordable Care Act — “reshaping health care reform,” he says, “by replacing Obamacare with measures that will bring down the cost of health insurance rather than, as Obamacare does, increasing it.” This plan, combined with the Romney-Ryan Budget and a proposed “Cap” on Government Spending at 20% of GDP, is an excellent start.

On the other hand, Obama has America on a suicidal path to fiscal and economic failure with no serious plan to grow the economy, create private sector jobs, and reduce the national debt and deficit. Obama’s alternative is more of the same: more government spending, more government regulations, more government taxes, more government control, and less personal and business freedom. Obama doesn’t seem to care about our national security, the US Constitution, our allies abroad, personal liberty, private property rights, economic growth, free market capitalism, or traditional American values. Apparently, Obama cares more about wealth redistribution, bigger and bigger government, labor unions, and, most importantly, personal reelection. Unlike Obama, Romney and Ryan are telling us the truth about the economic crisis we face and have logical and reasonable plans to correct the Obama debacle over the next decade. Their plans are not radical but rational and should be supported by a majority of Americans who want our country to grow and prosper.

Obama is the antithesis of nearly everything I believe about America & virtually everything that has made America exceptional. The centrally controlled “trickle up poverty” collectivist policies of dependency & unsustainable entitlements by Obama and the Democrats are not working in America, are creating crisis and potential disaster in Europe, and have failed historically. Obama has had his opportunity and he has failed as a leader. Perhaps his failure was inevitable given his serious lack of qualifications when he was elected. It is time to replace him and Vice President Biden with a truly qualified and experienced leadership team.

The growth of Western Civilization and especially the United States was fuelled by the expansion of individual liberties, private property rights, and a free market capitalist society. Our nation was established on the basic principle that government is the servant of the people, not that the people are the servants of government. It’s time to take back our country and return to the individual liberties, free markets, economic growth, and limited government we have long enjoyed. The United States of America is the greatest, most prosperous, most unselfish, and most exceptional country in history. There is still an opportunity to save The American Dream but time is rapidly running out. Vote for the real American “Hope & Change” offered by Romney and Ryan in November.

The Old Guy PhD

Obama’s 2013 Budget – More “Obammunism”!

G’Day!

Tax and Spend! Spend and Tax! Spend, Spend, Spend! These are the only fiscal policies the President appears to support. They were also reflected in his populist State of the Union oration in January. President Obama’s socialist concept for our country is painfully transparent. Higher taxes, excessive federal spending, unsustainable entitlements, reductions in National Defense, and another fiscal deficit of approximately $1 trillion for 2013 are all included in his push for more and bigger central government. Obama appears to believe in “Trickle-down Government”, where a parasitic government extracts wealth created by the productive private sector, adds an administrative processing fee, and returns the residual to government selected individuals and businesses in the hope for “stimulated” economic growth. Does this concept make any sense?

The Democrat-controlled Senate has not passed a budget in over three years. In every year of the Obama Administration federal deficits have exceeded $1 trillion (in 8 years of President Bush the maximum federal deficit was $0.5 trillion). Obama claims that his new budget “saves” approximately $4 trillion over the next ten years. It actually increases the cumulative deficit and debt over this ten-year period by approximately $6 trillion. Other than National Defense, his proposed budget makes no serious attempt to reduce government discretionary spending or entitlements. It appears that the President’s rhetoric is to create class warfare intended to improve his chances for reelection and not for the future benefit of our nation. How far behind Greece are we?

In my opinion, this budget and the State of the Union speech are more of what I call “Obammunism” and is bad for our country. “Obammunism” is essentially turning America into a centrally planned, European-style, bureaucratic, welfare state. This concept is based on a socialist doctrine of forced economic equality determined by an arbitrary bureaucratic definition of “Fairness” or “Fair Share”. Obama apparently wants to establish a socialist nanny state by transferring wealth from the successful businesses and individuals above a government-determined wealth “Threshold” to those below this level. “Obammunism” penalizes hard work and achievement and rewards idleness and failure. Simultaneously, it is stifling economic growth, promoting class warfare, lowering the potential standard of living for all citizens (especially the middle class), and continuing our nation’s decline under a mountain of debt. Obama’s policies continue to undermine our Constitution, our heritage, our culture, and our fundamental principles of individual freedom, free markets, sound fiscal and monetary policy, economic growth, and limited government.

Consider this, who determines “Fair Share”? Under Capitalism, “Fair Share” is objectively determined by the choices of the people in a free market. Under “Obammunism”, bureaucrats subjectively and arbitrarily determine “Fair Share” and impose it on the people. What is to protect you from the “Bureaucratic Elite” changing the wealth “Threshold” from $1 million, to $250,000, to $100,000, to $75,000 or lower? If you support Obama’s policies, nothing can prevent the “Government” from arbitrarily changing “Fair Share” to adversely penalize more and more successful people. If you work hard and succeed in improving yourself and your family, what is to prevent the government from penalizing you for becoming “Rich”?

A society built on “Obammunism” has few incentives for anyone to create value (except bureaucrats, who subjectively divide the wealth, frequently among themselves). If value is created, it is likely to be taken away and redistributed to others. Taking from those who earn and redistributing to those who do not does not create wealth and prosperity. Margaret Thatcher said it best, “The problem with Socialism is that you eventually run out of other people’s money!”

The Communists put it this way, “from each according to their abilities, to each according to their need”. This did not work well for the people in the former Soviet Union. Communism’s precursor, socialism, is currently eroding the freedom, growth, and prosperity of the European Union. The path from democracy based on personal freedoms and private property rights to authoritarian wealth-sharing socialism based on central planning and control is not necessarily a long one (see “The Road to Serfdom” by Nobel Prize winner, Friedrich A. Hayek). If it is allowed to continue in America, it will further damage and perhaps destroy both the culture of constitutionally protected personal liberty and opportunity that we have enjoyed for over 200 years. Socialist societies penalize success and reduce economic growth and living standards. Capitalist societies reward success and increase economic growth and living standards. Which future do you want for yourself, your children, and our country?

The growth of Western Civilization and especially the United States was fuelled by the expansion of individual liberties, property rights, and a free market capitalist society. Our nation was established on the fundamental principle that government is the servant of the people, not that the people are the servants of the government. It’s time to take back our country and return to the individual liberties, free markets, economic growth, and limited government we have long enjoyed.

The Old Guy PhD

Is Obama Really Serious about Debt Reduction?

G’Day!

The answer is apparently “NO”, based on the 1st & 2nd Obama budget proposals for 2012 and the Democrats tooth-and-nail fight before agreeing to a miniscule and questionable $38 billion (a mere 3-4 days) in spending cuts this year from a current projected deficit of $1.7 trillion for 2011! However, they are serious about political posturing, fear mongering, and demagoguery against Paul Ryan and the Republicans for even proposing an earnest plan to resolve the crisis. As indicated last week in “Obama Ignores Bowles-Simpson Debt Reduction Commission – AGAIN!”, their answer is SPEND, SPEND, SPEND and TAX the success of the real investors and hard-working small businesses who are the genuine creators of economic growth, job creation, and wealth in our country. Their only solution is to tax the “Rich” when approximately 45% of the households pay no federal income taxes at all and the “Rich” (Top 2%, incomes over $250,000) already pay over 40% of the total! Tax reform is necessary but Obama’s proposals are neither the serious leadership our country needs nor even a nod of recognition for the fiscal and debt crises we face.

The Fed can’t print enough money to solve this problem without major devaluation of our currency and significant increases in inflation and interest rates. History has repeatedly shown that excessive government spending financed by debt combined with extreme increases in money supply usually results in a collapsed economy and crisis in government. Many other nations have tried this and failed miserably. For example, France tried this before and during the French Revolution and it ultimately led to the collapse of their currency, their economy, the failure of their government, and the rise of Napoleon as dictator. Germany tried this after WWI and it lead to the collapse of their currency, their economy, the failure of their government, and the rise of Hitler as dictator. For more information about financial crises see, “This Time is Different: Eight Centuries of Financial Folly”, by Carmen M. Reinhart & Kenneth S. Rogoff, who analyze financial crises in 66 countries in their 2009 book. Regarding “This Time is Different” they conclude, “It almost never is.”

America is not immune to the workings of economic forces and cannot continue as a great nation if we do not put our bloated and inefficient government spending on a sound fiscal path, cap government spending as a percentage of GDP, and appropriately modify (not eliminate) our currently unsustainable entitlement and social programs for long-term viability. Recent history suggests the sustainable level for federal government spending has been approximately 20% of GDP. Federal government spending was 20.7% of GDP in 2008, 23.8% in 2010, and is expected to be over 25.5% in the current year (the highest level in history, other than WWII). This is a +5% increase in the size of our federal government in the first 2-3 years of the Obama Administration! This is madness and must be corrected!

There is no question that many (but not all) government social programs are desirable; they are just not affordable or consistent with a vibrant, innovative, expanding economy, and rising standard of living for the American people. As I said last week, “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 don’t.” Most other developed nations, including Russia, have learned the incentives and benefits of free market capitalism and our government needs to relearn them as well.

If President Obama was sincere about debt reduction, he would be listening to and acting on the recommendations from the bipartisan Debt Reduction Commission he established. The Bowles-Simpson Co-Chairs’ Proposal outlines how to achieve results through comprehensive and specific actions to improve revenues through tax reform, to reduce government discretionary spending including defense, and to reduce entitlement programs through healthcare and social security reform. All of these reforms: taxation, discretionary spending, entitlements for healthcare and social security are essential to a comprehensive solution for our country’s problems and, if we are to succeed, ALL must be addressed.

Our fiscal and debt problems are correctable if our government seriously addresses the needs of the country and not their political desires for reelection. If Obama, Democrats, and Republicans can’t agree on comprehensive legislation to reduce government spending and bring the size of government back to sustainable levels consistent with a growth economy, our country faces a potential sovereign debt crisis similar to those described in the book by Reinhart & Rogoff referenced above. I agree with Standard & Poor’s downgrading of the “outlook” for US Debt based on the political turmoil in our Government. The outlook for a government solution before the 2012 election is not good and I don’t believe Obama and the Democrats want a real solution. Currently, it appears Obama and the Democrats believe the American people are not intelligent enough to see the need for real government spending reform and are too self-interested to revise the social programs to sustainable levels. I do not agree with this view. I believe the American people are intelligent and don’t want to leave to future generations of Americans a damaged economy with an authoritarian bureaucratic government controlling our lives.

In my first post on this website, “Big Government IS Our Problem!”, I described in more detail the current Administration’s trend toward big government collectivism and the dangerous omens it portends for the future of our lives and our nation. In the 2 months since that posting, the situation has become worse and the socialist agenda of our President and the Democrats has become very clear. They do not appear to be serious about debt reduction or reducing government spending. If we are to have a successful and prosperous country in the future, we must take back our country and reestablish the principles of limited government, free markets, individual liberties, and sound fiscal & monetary policies. Get “Big Brother” out of the way and off our backs, reform taxation & spending, and our economy will recover faster and the future of our nation will be assured.

The Old Guy PhD

 

Obama Ignores Bowles-Simpson Debt Reduction Commission – Again!

G’Day!

Spend and Tax! Tax and Spend! Spend, Spend, Spend! This is the clearly defined policy framework outlined in Wednesday’s political speech by President Barack Hussein Obama. As noted in a previous post, “Big Government IS Our Problem!”. 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, (“Bowles & Simpson have It Right!”)? Can’t Obama and the Democrats do math?

In President Obama’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 Commission’s proposal. The President’s theme was to incorrectly accuse Republicans of taking money from Senior Citizens and Medicare to provide tax cuts for the “wealthy”. Obama knows better and, as President, should be ashamed of his attempt to mislead the American people. The Bowles-Simpson Debt Reduction Commission’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, Obama’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 Commission’s recommendations and lacked real substance or specifics. In response to the Republican’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 Ryan’s 2012 budget proposal. VP Joe Biden was so impressed that he dozed off during the President’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. Obama’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 “lock in”, 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 “Is Obama Our Worst President or Just the Weakest?”). 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 Obama’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 Hoover’s campaign slogan, “A chicken in every pot and a car in every garage”, with this addition: “Paid for by the US Government”.

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 don’t. Even Russia learned that Karl Marx was wrong when he said, “From each, according to his ability; to each, according to his need.” 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, “The Road to Serfdom”, 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 aren’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. Let’s stop this decay, get back to our traditional foundations, and correct the trend as soon as possible.

The Old Guy PhD

 

Government Shutdown, Who’s to Blame?

G’Day!

Our federal government is facing the distinct possibility of a shutdown this week. If the government is shut down, President Obama and the Democrats will have no one to blame for the crisis other than themselves.

Last year Obama and the Democrats devoted their time and effort on passing an ill-advised and budget-busting healthcare bill, which added significantly to an already unsustainable debt problem for our country. During this same period, President Obama and the Democrats, with total control of Congress and the Administration did not even pass a budget for our current 2011 Federal Fiscal Year!! This is not leadership and represents a total disregard of their responsibility to our country. If Obama and Democrats had performed their duties to the American people last year, the current budget crisis would have been avoided and there would be no possibility of a government shut down this week. They have NOT performed responsibly and did not fulfill their obligations to the nation.

As bad as last year’s performance was, it is now history and must be corrected by the new Congress with the old President. So, what has happened in 2011 to handle the current Democrat-created budget crisis? The new Republican-led House of Representatives passed a bill over 40 days ago repealing the Obamacare healthcare fiscal disaster, passed a bill calling for only $61 billion in spending reductions this year (approximately 6 days of government spending, see “Is Our Government Broken?”), agreed to Continuing Resolutions to keep our government functioning until April 8, and have just proposed another Continuing Resolution to avoid a government shutdown.

On the Democrat’s side, Obama submitted his 2012 Budget to Congress (an irresponsible fiscal and debt-busting budget disaster), which ADDS an expected $1.6 trillion to the deficit next year and $7.2 trillion over the next 10 years (see “Is Our Government Broken?”). The President’s 2012 Budget Proposal includes NONE of the suggestions from the Bowles-Simpson Debt Reduction Commission Proposal submitted in December, (see “Bowles & Simpson Have it Right!”). Until this week when, at the 12th hour, he finally called Congressional Leaders together, Obama has been absent from the process of resolving this critical problem. Even the Democrats have complained about his lack of leadership on this issue. In addition, Obama has rejected the current Republican’s proposal for another Continuing Resolution beyond April 8. Obama has, however, found sufficient time during the first 3 months of 2011 to engage in golf, political speeches and fundraisers, and “Presidential Tourism”, while displaying a remarkable lack of leadership in the various Middle East crises, especially Libya. For their part, the Democrats in the Senate have failed to pass ANY bills regarding the budget problem, have stifled any progress on legislation to resolve it, and have engaged in political posturing by persistently blaming Republicans, especially the “Tea Party”, for the stalemate. Specifically, they did initially offer $10 billion in spending reductions this year (1 day’s government spending) and, reportedly are now offering a “non-specific” reduction of $33 billion (3 day’s government spending). It is important to repeat that the Senate, under the direction of Harry Reid (D-NV), has FAILED TO PASS a single piece of legislation on this year’s budget issue except the Continuing Resolutions, which end April 8. The House, under the direction of John Boehner (R-OH), passed legislation over 40 days ago.

It seems absolutely clear that President Obama and the Congressional Democrats are not serious about resolving the issue of this year’s spending and resolving the limit on our National Debt. My suspicions are they want a government shutdown and expect the Republicans will get the blame. I believe the history and facts are clear, if non-essential government services are forced to close, President Obama and Democrats in the Senate are fully responsible for the closure. I also believe that the American people are sufficiently intelligent and informed to recognize this and will properly hold President Obama and the Democratic Party accountable at the next election in 2012.

Frankly, as I have said before, other than national defense and essential services, shutting down the Federal Government might be a good thing. Certainly our government is too big and its growth, especially under Obama and the Democrats, is out of control. If all “non-essential” government workers were furloughed, we should have a clear indication of what size our government should be. By definition, “non-essential” means unnecessary. A case can always be made for “desirable” but “unnecessary” services. The key is the cost to the American taxpayer of the “desirable” service provided. The American people cannot afford to pay for every “desirable” idea and should not be forced to do so through taxation.

“Big Government Is Our Problem” and we MUST stop its growth and reduce its size. We need to return to our nation’s principles of free markets, sound fiscal and monetary policy, and limited government. Let’s elect national and state leaders that support these views.

The Old Guy PhD

 

Is Our Government Broken?

G’Day!

Yes, our government is currently broken and it needs to GET TO WORK! The events taking place in our national government and some states do not represent the principles of elected representative government upon which America was founded. We elected our officials to serve the needs of the people, not the desires of their political party, big business, or unions.

President Obama, both Democrat and Republican Congressional Representatives and Senators (with minor exceptions) are not currently working for the long-term benefit of America. Nearly all are posturing and working for what they perceive as the good of their political party and personal reelection. Citizens have common sense and know that we have fiscal and debt crises that are too large and unsustainable. We must get our State and Federal Governments in order.

Our overall national debt is currently $14.2 trillion and growing. It is nearly the size of our annual GDP.  Disturbingly, over $1 trillion of this debt is held by China, not our most reliable or friendly partner. Our fiscal deficit in 2008 was $0.459 trillion, by 2010 it nearly tripled to $1.3 trillion, and the expected deficit in 2011 is $1.7 trillion. Additionally, we currently have unfunded “entitlement” liabilities for Social Security of $14.8 trillion, Prescription Drugs of $19.6 trillion, & Medicare of $78.1 trillion. This is a total current obligation for future generations of $112.5 trillion, nearly 8 times our total annual output and just over $1.0 MILLION per current taxpayer. This is madness and is crippling our economy and economic growth.

We actually have NO FEDERAL BUDGET for 2011! Obama’s unapproved 2011 “budget” is expected to reach $3.7 trillion this year. This amounts to $10.1 BILLION PER DAY. In the current congressional debate concerning raising the debt ceiling, Democrats have offered  “real” cuts for the remainder of the fiscal year of $10 billion (1 day’s spending) and the Republicans are offering approximately $60 billion (only 6 day’s spending). Neither proposal even remotely addresses the magnitude of our problem. If agreement can’t be reached in Congress, the Federal Government may be forced to shut down. Frankly, except for national security and some essential services, this might actually be a good thing. Our government is too big, too irresponsible, and too self-oriented. Can you imagine what the Founding Fathers would think of what is happening in our government today? A temporary shut down might force us to be more responsible and self-reliant, as the founders of our nation and our Constitution intended.

As noted, the magnitude of our nation’s financial problem is enormous, increasing, and untenable! So what is our government doing to correct the crisis? Last year, the Democrats, who controlled the Administration, the Senate, and the House of Representatives, failed to even pass a Federal Budget for fiscal 2011. They were, however, able to compound our future fiscal and debt problems by passing a massive and unpopular healthcare bill and a financial reform bill, both of which further increase the size of government, with more regulations and control over important sectors of our lives. This legislation further erodes our liberties and free-market economy. Do we really want to become a collectivist country with the government dictating our lives?

For his part, President Obama has virtually abdicated all leadership in this crisis by proposing a new budget for next year projecting spending of another $3.7 trillion and an addition to the deficit of $1.6 trillion. Over the next 10 years the new Obama budget proposal is expected to produce a further cumulative deficit of $7.2 trillion, bringing our overall national debt to approximately $22 trillion. President Obama is spending (pun intended) his time travelling, golfing, and giving political speeches; and his proposed budget is an embarrassment given the magnitude of our country’s ongoing financial problems.

In Congress only the Republicans are even attempting to deal with the fiscal and debt problem and so far they are dealing with trivial, not real spending or fiscal reform (although it is promised). The Democrats are essentially ignoring the problem and blocking even the inconsequential cuts proposed by Republicans for the remainder of this year (see above). When real leadership is essential, Obama and Congress have abdicated their responsibility to the nation and chosen posturing and rhetoric over work and accomplishment for the American people.

At the State level a few Governors are trying to deal with similar budget issues, but some Democrats have deserted their State Houses and fled their elected responsibilities (see “State Democrats Shun Democratic Process!”). Unions are sponsoring demonstrations in several states, which are disrupting our democratic processes and interfering with the ability of our democratically elected representatives (when present) to perform their legislative duties. This is a travesty and is not the way our democracy is intended to work.

Yes, our government is currently broken and it’s time to get to work. What should they be doing? First, after quickly resolving the ridiculous political stalemate over the debt limit and budget for the rest of this year, they should NOT make the fiscal situation worse and the government’s out-of-control spending and inefficiencies should be eliminated as soon as possible. The GAO report “Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue” has already identified unnecessary duplication, overlap, or fragmentation existing across our Federal Government totaling BILLIONS of dollars in ANNUAL SAVINGS. This is a good place to start.

Second, they should employ proven strategic management techniques. Any basic management course indicates that solving problems and capturing opportunities requires: setting long-term goals, reviewing historical performance to identify strengths and weaknesses, identifying and prioritizing alternative “comprehensive” solutions, acting on the best “comprehensive” solutions, and measuring and correcting course to improve performance. Our government needs to follow this agenda. The Bowles-Simpson, Co-Chairs Draft Report, “National Commission on Fiscal Responsibility”, is a reasonable draft proposal for identifying and establishing these goals and actions (some painful) to resolve the long-term financial crisis we face as a nation. It addresses all areas of government including its size, spending, and revenues and suggests major reform in income taxation and entitlement programs. This is also a good place to start. To date, neither President Obama nor Congress appears to be seriously considering the information and recommendations in either report.

“Big Government is Our Problem”! Let’s fix it and put our country back on a solid foundation with individual freedom, free markets, sound fiscal and monetary policy, economic growth, and limited government!

The Old Guy PhD

 

Big Government IS Our Problem!

G’Day!

President Reagan was right! Big government IS our problem. Many of you are justified in your frustration with government for its increasing size, spending, regulation, and control over our lives. Left unchecked (pun intended), our individual freedoms, ability as a nation to innovate, and competitiveness in the global economy will continue to be eroded. If government would get out of the way, business would improve, jobs would be created, and the country would prosper. Reforming both personal and business income taxes is also required and would further stimulate growth and job creation. Taxes will be the subject of future posts on this site.

The magnitude of our nation’s financial problem is enormous and growing! We anticipate a fiscal deficit of $1.6 trillion in 2011 and President Obama’s budget proposal for 2012 projects a further deficit of $1.1 trillion. Over the next 10 years the new Obama budget proposal projects a cumulative deficit of $7.2 trillion. Additionally, we currently have an overall national debt in excess of $14 trillion, nearly the size of our annual GDP, and according to the National Debt Clock, have unfunded “entitlement” liabilities for Social Security of $14.8 trillion, Prescription Drugs of $19.6 trillion, & Medicare of $78.1 trillion. This is a current total obligation for future generations of $112.5 trillion, nearly 8 times our total annual output and just over $1.0 MILLION per current taxpayer. This is madness and is unsustainable for our economy.

President Obama has impressive rhetoric, but his new “centrist” oratory is unconvincing and inconsistent with the actions of his administration. He has a very different view for the future of our government than I. Obama’s actions indicate the socialist belief that BIG government is the answer to most, if not all, issues. He is converting our personal freedoms and free market economy into a European-style collectivist society with strong central governmental control over our lives and appears to believe that central government can make better decisions for individuals than individuals can make for themselves in a free society. This is a dangerous trend toward expanded central planning and is not the constitutional basis for liberty upon which the Founding Fathers established our great nation. Oddly enough, Obama’s action is taking place at a time when the major European nations are moving in the opposite direction toward American ideals. I believe it was Abraham Lincoln who said, “Government should only do for the people what the people cannot do for themselves.” I fully agree.

If the current administration is not stopped, America’s freedoms, spirit of entrepreneurship, & economic strength could be set back for years and probably permanently diminished. Much has already been initiated with the new legislation for healthcare and financial reform. Both of these new acts add too much central governmental control over crucial industries and need to be repealed or modified to conform to the principles of our free market economy. Future posts will also explore these two subjects in more detail.

America is on an unfavorable and unsustainable course, which must be changed or we face extremely serious consequences for our economy and our freedoms. Ronald Reagan was right (additional pun intended) when he said the 9 scariest words are, “I’m from the government and I’m here to help.” It is time for us to take back our country.

Big government IS the problem; freedom is the answer.

The Old Guy PhD