Tag: Democrats

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