One would have thought that after the recent Democratic losses in three States, two of which were staunch Democratic areas, that the President would have heard the message from the voters loud and clear. Well, apparently they still can’t hear you. Glenn Beck warned on one of his shows after the Massachusetts victory for Republican Scott Brown that one of two Presidents would emerge from the ashes. Either we would see a politician that would move to the center as Bill Clinton did after his 1994 midterm thrashing or we would see Obama the ideologue stomping on the gas to force his agenda through. For those that didn’t see a glimpse of the ideologue during the State of the Union address we have additional proof today in the President’s budget proposals for 2011.
The budget for FY 2011 announced today will top $3.8 trillion dollars and add another $1.56 trillion dollars to the national debt….if we are lucky. White House Budget Director Peter “Loverboy” Orszag claims that the President’s plans will trim over $1 trillion dollars from the Federal Budget within the next ten years but that is one of the oldest tricks in the books. All the President has to do to achieve that is to announce that they didn’t spend money they were planning to and Viola! $1 trillion dollars has been trimmed from the Federal Budget. It is a phantom trillion, a savings that is as hard to prove as all of the “jobs saved” under the last stimulus bill. Before the President could be able to claim such a savings with authority, he would have to be believable and that is equally as laughable.
President Obama's budget plans project $5.08 trillion in deficit spending over the next five years -- a 35 percent increase over what the administration projected a year ago. Even the current budget deficit is suspect as the revenue figures include income from Cap and Trade; a bill that has not yet passed Congress and if economic conditions do not vastly improve, will never pass. Just in case you have lost track of Cap and Trade, the administration is now trying to sell this massive energy tax under the heading of a “comprehensive energy bill”. Similar to the renaming of global warming to climate change now that the planet appears to be cooling….it still stinks no matter what it is calls.
To spite the President’s call for development of American domestic energy resources during the State of the Union Address, including oil, coal and nuclear power, this budget cuts subsidies for fossil fuels netting a reduction of $31.5 trillion dollars over ten years. That will raise costs for American energy consumers, only adding to the additional costs for energy promised if the President’s energy bill is passed. Pass out the candles folks…the lights are going out if Obama get’s his way. The fact is that either we develop domestic resources as politician Obama promised during his speech or we tax the hell out of them as ideologue Obama promises in his budget. If I had to guess which one to bet on, all I have to do is look at his track record. His speeches have so far, meant nothing while the black and white, tax and spend ink on the pages of his budgets have seized the day. Perhaps I should have said red and white, tax and spend ink?
So where is the attention to the plight of unemployed Americans? Certainly, you won’t find it in this budget proposal. Ever since the inception of the personal income tax under Woodrow Wilson, the historical evidence proves over and over that increases in taxes reduce overall revenue to the treasury because of the negative effect they have on business. Even Obama said that small business provides more than half the jobs in the United States. Whether or not he actually believes that is up for debate but he did say it. They why does every major initiative the President is trying to get passed into law contain oppressive new regulations and massive new taxes that will strangle the number one job creator in the United States?
While the White House happily announces that the mediocre growth of the economy in the last quarter is proof that the recession is easing, much of that growth was brought on by government spending on pet projects that provided little or no relief to the unemployed. The hopeless ideologue and his “progressive friends” in Congress (his words, not mine) still fail to see that government does not create jobs. Only the private sector can create real and lasting employment and only during those odd years when government stops meddling in their affairs. Government can create jobs within their own bloated bureaucracies but those “support” jobs still rely on collecting taxes from income generated by real companies that pay real wages to real employees.
In a quick summary taken from business 101, companies basically have two kinds of employees beyond the owners; sales people that generate revenue for the company and support people that use a portion of that revenue to provide support for the sales people. When times are lean and cuts must be made, the first positions any company will eliminate are support staff because it makes no fiscal sense to eliminate the people that actually earn money for the company. What ideologues and Congressional Progressives still fail to understand is that the Federal government, in its entirety, is the support staff for the American people. We are the revenue generators and there isn’t a nickel they spend that does not come directly from our earnings. Contrary to every known law of fiscal responsibility, the Federal government under the Progressive banner is expanding the support staff of the nation at the expense of the people that actually earn the money. It cannot work.
Every time that the Federal government has cut taxes it has led directly to an expansion of the economy and to the growth of revenues to the treasury. The increases in debt have always come from a spendthrift Congress and their history is to spend every penny they can get their hands on, and more. The best possible ratio of taxes to GDP is 20%. That is when you can afford a reasonable level of government and still maintain decent measure of economic growth. Of course that has to be the real GDP; not one that has been inflated by the influence of government stimulus spending. The other segue is that the taxes collected cannot exclusively be taken from those that are the investors and creators of the businesses that actually create jobs. Only the demented views of the radical left see wealth as an evil worthy of punishment; the rest of us see it as a statement of opportunity and the rewards of hard work. The truth is that I don’t believe they really think wealth is evil. Most of them are wealthy in their own right. They do use the evil rich argument as a tool to gain the support of the average American when they pass tax plans that confiscate unconscionable amounts of that wealth.
There appears to be no recognition in Washington that we are in serious economic trouble and no one but the government has ever proposed that they can spend themselves out of debt. Just a few short years ago, China was purchasing 50% of the notes that fund our annual deficit. Now that the dollar has shrunk thanks to the runaway printing of money at the Federal Reserve, China has lost billions as the interest we paid them to service the debt has diminished over 17% this year alone. The net result is that China only purchased 4% of our deficit spending in 2009 and that is just a portend of things to come.
The balance of our deficit had to be financed elsewhere, with the American people picking up a large part of it. Don’t kid yourself; that is not an indication that the American people have faith in the solvency of the Federal government. That really speaks about the lack of faith in the nation’s banking system. Wary investors are asking the Fed to hold their money, even at zero interest as the last safe haven before they begin dumping dollars and buying gold. When that begins to happen it will signal that events are about to enter a new and dangerous territory….a territory last visited by the Weimar Republic after World War One.
Paul
The budget for FY 2011 announced today will top $3.8 trillion dollars and add another $1.56 trillion dollars to the national debt….if we are lucky. White House Budget Director Peter “Loverboy” Orszag claims that the President’s plans will trim over $1 trillion dollars from the Federal Budget within the next ten years but that is one of the oldest tricks in the books. All the President has to do to achieve that is to announce that they didn’t spend money they were planning to and Viola! $1 trillion dollars has been trimmed from the Federal Budget. It is a phantom trillion, a savings that is as hard to prove as all of the “jobs saved” under the last stimulus bill. Before the President could be able to claim such a savings with authority, he would have to be believable and that is equally as laughable.
President Obama's budget plans project $5.08 trillion in deficit spending over the next five years -- a 35 percent increase over what the administration projected a year ago. Even the current budget deficit is suspect as the revenue figures include income from Cap and Trade; a bill that has not yet passed Congress and if economic conditions do not vastly improve, will never pass. Just in case you have lost track of Cap and Trade, the administration is now trying to sell this massive energy tax under the heading of a “comprehensive energy bill”. Similar to the renaming of global warming to climate change now that the planet appears to be cooling….it still stinks no matter what it is calls.
To spite the President’s call for development of American domestic energy resources during the State of the Union Address, including oil, coal and nuclear power, this budget cuts subsidies for fossil fuels netting a reduction of $31.5 trillion dollars over ten years. That will raise costs for American energy consumers, only adding to the additional costs for energy promised if the President’s energy bill is passed. Pass out the candles folks…the lights are going out if Obama get’s his way. The fact is that either we develop domestic resources as politician Obama promised during his speech or we tax the hell out of them as ideologue Obama promises in his budget. If I had to guess which one to bet on, all I have to do is look at his track record. His speeches have so far, meant nothing while the black and white, tax and spend ink on the pages of his budgets have seized the day. Perhaps I should have said red and white, tax and spend ink?
So where is the attention to the plight of unemployed Americans? Certainly, you won’t find it in this budget proposal. Ever since the inception of the personal income tax under Woodrow Wilson, the historical evidence proves over and over that increases in taxes reduce overall revenue to the treasury because of the negative effect they have on business. Even Obama said that small business provides more than half the jobs in the United States. Whether or not he actually believes that is up for debate but he did say it. They why does every major initiative the President is trying to get passed into law contain oppressive new regulations and massive new taxes that will strangle the number one job creator in the United States?
While the White House happily announces that the mediocre growth of the economy in the last quarter is proof that the recession is easing, much of that growth was brought on by government spending on pet projects that provided little or no relief to the unemployed. The hopeless ideologue and his “progressive friends” in Congress (his words, not mine) still fail to see that government does not create jobs. Only the private sector can create real and lasting employment and only during those odd years when government stops meddling in their affairs. Government can create jobs within their own bloated bureaucracies but those “support” jobs still rely on collecting taxes from income generated by real companies that pay real wages to real employees.
In a quick summary taken from business 101, companies basically have two kinds of employees beyond the owners; sales people that generate revenue for the company and support people that use a portion of that revenue to provide support for the sales people. When times are lean and cuts must be made, the first positions any company will eliminate are support staff because it makes no fiscal sense to eliminate the people that actually earn money for the company. What ideologues and Congressional Progressives still fail to understand is that the Federal government, in its entirety, is the support staff for the American people. We are the revenue generators and there isn’t a nickel they spend that does not come directly from our earnings. Contrary to every known law of fiscal responsibility, the Federal government under the Progressive banner is expanding the support staff of the nation at the expense of the people that actually earn the money. It cannot work.
Every time that the Federal government has cut taxes it has led directly to an expansion of the economy and to the growth of revenues to the treasury. The increases in debt have always come from a spendthrift Congress and their history is to spend every penny they can get their hands on, and more. The best possible ratio of taxes to GDP is 20%. That is when you can afford a reasonable level of government and still maintain decent measure of economic growth. Of course that has to be the real GDP; not one that has been inflated by the influence of government stimulus spending. The other segue is that the taxes collected cannot exclusively be taken from those that are the investors and creators of the businesses that actually create jobs. Only the demented views of the radical left see wealth as an evil worthy of punishment; the rest of us see it as a statement of opportunity and the rewards of hard work. The truth is that I don’t believe they really think wealth is evil. Most of them are wealthy in their own right. They do use the evil rich argument as a tool to gain the support of the average American when they pass tax plans that confiscate unconscionable amounts of that wealth.
There appears to be no recognition in Washington that we are in serious economic trouble and no one but the government has ever proposed that they can spend themselves out of debt. Just a few short years ago, China was purchasing 50% of the notes that fund our annual deficit. Now that the dollar has shrunk thanks to the runaway printing of money at the Federal Reserve, China has lost billions as the interest we paid them to service the debt has diminished over 17% this year alone. The net result is that China only purchased 4% of our deficit spending in 2009 and that is just a portend of things to come.
The balance of our deficit had to be financed elsewhere, with the American people picking up a large part of it. Don’t kid yourself; that is not an indication that the American people have faith in the solvency of the Federal government. That really speaks about the lack of faith in the nation’s banking system. Wary investors are asking the Fed to hold their money, even at zero interest as the last safe haven before they begin dumping dollars and buying gold. When that begins to happen it will signal that events are about to enter a new and dangerous territory….a territory last visited by the Weimar Republic after World War One.
Paul
No comments:
Post a Comment