When Does the Process of “Breaking the Bank” Actually Break It?

27 Oct

Notes from a recent John Stossel column about reckless and dangerous government spending [“Broke U.S. Resumes Spending”].  It speaks for itself.

Begin Excerpt:  [Bolding and italics are mine]

.  .  .  .  [W]hen Congress and President Obama agreed on a deal last week to raise the debt ceiling and resume government spending, people reacted as if a disaster was averted — instead of reacting as if a disaster had resumed. It has.  .  .  .   

For most of the history of America, federal spending never took up more than 5 percent of the economy. . . .

Then came Presidents Johnson and Nixon and the “great society.” . . . Now, if you include local government, government spending makes up more than 40 percent of the economy.  .  .  .

[W]hen Obama campaigned for the presidency, he was very upset about his predecessor’s deficits.

Sen. Obama complained, “The way Bush has done it over the last eight years is to take out a credit card from the bank of China. … We now have over $9 trillion of debt that we are going to have to pay back. … That is irresponsible.”

I agree! $9 trillion in debt is totally irresponsible. That makes it all the more remarkable that just a few years later, under President Obama, debt increased to $17 trillion. But now, suddenly, this vast debt is no longer irresponsible. Today the president says what is irresponsible is for Congress not to constantly raise the debt ceiling .

.  .  .  .  I showed people on the street a chart that documented America’s unsustainable spending. People were horrified and said government “should make cuts.” But when I asked, “What programs would you cut?” most could not name a single significant program.

So let me make some suggestions: Eliminate NPR and PBS funding. Cut foreign aid. End the war on drugs. Kill Fannie and Freddie, which .  .  .  helped cause the financial crisis. Eliminate cabinet departments like Commerce, Energy, Agriculture and Education .  .  .  . (Education is a local function, and the department spending $100 billion a year hasn’t raised test scores one bit.)

Shrink the military by reducing our overseas commitments. Reform Social Security by raising the retirement age. And instead of increasing government involvement in health care, turn Medicare into a self-sustaining insurance program.

But to save America from bankruptcy, we don’t even need to make all those cuts. We could grow our way out of debt if Congress simply froze spending. They won’t do that either, but if they limited spending growth to 2 percent per year, we could balance the budget in just three years.

Limiting government growth is politically difficult, but if we don’t do it, America is doomed.

[End Excerpt]

Advertisements

Please reply here -- I value your thoughts

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: