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On Nov. 16, the national debt surpassed $15 trillion for the first time in U.S. history to $15.026 trillion. And at its current trajectory, it will pass 100 percent of the $15.198 trillion Gross Domestic Product by the end of the year, if not early in 2012. Government borrowing becomes a drain on economic output.
Recently ABC News highlighted the story of Leeton, Missouri, a town so small — a population less than 700 — and hard-hit by the lackluster economy that it lost its only grocery store. Seeing a need, local school teachers Bonnie Seymour and Marijayne Manley decided it would be a good idea to have their agricultural business and entrepreneurship students start their very own grocery store.
A new Gallup poll finds most Americans recognize the cause of our economic woes: the federal government. Minus those government policies, the leverage that sunk the economy in 2008 would not be possible. For Republicans looking to thread the needle in 2012, they would do well to point out how government policies caused the financial crisis, and to hold accountable any opponent who supports maintaining those policies.
Wave after wave of government moratoriums on foreclosure of bad home loans since 2008 has stalled the natural market flow and forestalled recovery. As Americans for Limited Government President Bill Wilson says, “Government needs to get out of the way once and for all and allow this process to work itself out.”
The only party in Washington that rejected the insufficient debt deal that paved the way for AA was the tea party. At the end of the day, they were the only ones who were insisting on a solution instead of a deal to our creditworthiness crisis. They were the only ones who demanded the budget be balanced. They were the only ones who pointed to the S&P warning and advised policymakers to exceed the $4 trillion minimum threshold for savings. The tea party was right. Everyone else just has egg all over their faces.
Answering a question on America’s foreign dependence on oil from a Northern Virginia Community College student at a town hall event on April 19, Barack Obama boldly alleged, “we have actually continually increased U.S. production, so U.S. production is as high as it’s ever been.” It was a claim so false as to be laughable. With all the benefits of being energy independent, why is it that politicians only pay lip service to the idea?
If Obama had been right about his spending and money-printing scheme to save the economy, revenues would have already recovered. He also would not be proposing a budget that will add about $1 trillion to the debt every year, rising to over $24 trillion by 2021, and saying now that we need to raise taxes. That’s Obama’s tax and spend irony, and it should not be lost on the American people as we head towards 2012.
A battle has broken out between the tea party movement and House Republicans over just what the now-enacted continuing resolution (CR) for fiscal year 2011 will achieve in real savings. Activists have been responding to AP reports that the resolution cutting $38.5 billion would only result in $352 million in actual cuts to outlays in 2011. How can this be?
“If we continue down on the path on which the fiscal authorities put us, we will become insolvent, the question is when,” said Dallas Federal Reserve Bank President Richard Fisher after a recent speech at the University of Frankfurt. That is an alarming proclamation coming from a prominent central bank official. Not only because of the dire warning, but because Mr. Fisher is in a position to know of what he speaks.
Trust but verify. That is Americans for Limited Government (ALG) President Bill Wilson’s advice to the American people concerning House Republicans’ latest promise to attach $100 billion of cuts to an upcoming vote on the budget continuing resolution. The current resolution expires March 4th.
Less than a day after federal Judge Roger Vinson’s sweeping ruling striking down the entirety of ObamaCare as unconstitutional, the federal government has announced its intentions to move ahead with implementation of the law anyway. “We’re about to find out if the rule of law will prevail, or the rule of Obama,” said Americans for Limited Government President Bill Wilson.
Why tie an increase in the debt ceiling to a single year’s budget cuts, when it could be tied to a requirement that all budgets be balanced? A proposal by Senator Jim DeMint (R-SC) would require future Congresses to live within their means, and would be the first ever constitutional limit on Congress’ power of the purse. Now is the time for strict constitutional restrictions that will save the nation from certain insolvency.
House Republicans have released a report documenting the real costs of ObamaCare at $2.6 trillion upon full implementation and $701 billion in new debt in its first ten years alone. “The law was written to measure 10 years of tax increases to offset 6 years of new spending. There is no question that the creation of a trillion-dollar open-ended entitlement is a fiscal train wreck,” Rep. Paul Ryan (R-WI) said. Which is why it must be repealed.
It is time to stop kicking the can on the $13.8 trillion national debt. Sharp spending cuts, the elimination of corporate welfare and subsidies, and a flattening of the tax code at lower rates are all needed to bring America’s fiscal house into order.
“The unchecked expansion of congressional power to the limits suggested by the Minimum Essential Coverage Provision would invite unbridled exercise of federal police powers,” wrote Federal District Judge Henry Hudson in his decision invalidating the individual mandate to purchase health insurance imposed by ObamaCare. Judge Hudson is writing about what the now-enacted ObamaCare law does.
The Fed’s intervention into the treasuries market certainly makes U.S. debt less attractive, raising the specter that the Chinese and others will dump their holdings. When countries don’t want to buy the dollar, it is a short step to them choosing to dump the dollar. That sparks a dollar run. And only way to prevent it is to act immediately to balance the budget and restore international trust in the full faith and credit of the United States.