Tag Archive: debt


The campaign implications of the State of the Union

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January 26, 2012

President Obama says that without his leadership, the economy and the state of our country could be worse. However, it is an argument that won't fly.

President Obama’s State of the Union address Tuesday night was more of a preview of his new campaign strategy than an actual review of our current situation as a nation. Our growing deficit and our debt crisis, the two elephants in the room, were barely mentioned by President Obama, who preferred to spend his time bemoaning the success of wealthy Americans and pitting rich against poor. Fortunately, if these items are any indication of President Obama’s reelection strategy, Republicans should defeat him easily.

President Obama’s new strategy seems to depend on two central tactics: the first being to wage war against the rich in America and the second being to marginalize the problems that his administration has perpetrated. Pitting the rich against the poor and demonizing the successful in America will allow President Obama to essentially shift the blame for our current economic crisis onto the wealthiest Americans, who represent a minority in the United States. Castigating the rich can indeed win some voters, as some Americans are jealous of the wealth and prosperity of others. Fortunately, however, scapegoating the successful is not an effective strategy in the long term because it invites criticism from those on the right. Republican leaders have already decried President Obama numerous times for his divisiveness and for his pursuit of class warfare.

The more dangerous campaign strategy of the president is one that diminishes the real magnitude of the problems to which he has greatly contributed. Our national debt has increased by several trillion dollars since President Obama’s election back in 2009, and things are getting worse by the day. The United States debt currently sits at an alarmingly high $15.2 trillion, and Obama’s attempts to control spending have been quite literally non-existent. In fact, Mr. Obama has been more dedicated to increasing spending over his first term than he has been dedicated to decreasing it, as evidenced by Obamacare and the infamously wasteful stimulus programs that he championed. The economy continues to be driven into a ditch as disappointed, dispirited Americans continue to leave the workforce in droves and artificially suppress the unemployment rate, and the wanton waste of taxpayer dollars on government-funded messes like Solyndra shows an utter lack of stewardship of the hard-earned money of Americans by the Obama administration. All of these issues present major shortfalls for Obama’s reelection campaign, so the president’s new strategy is to simply minimize these topics. For example, the president has been attempting to diminish his failure at managing the American economy by saying that things could have been worse. However, be assured that whomever the Republican Party nominates to face the president this year will definitely focus on these topics and will make the president account for his failures. It is up to voters to listen to the truth and to realize that President Obama’s shortcomings far outweigh any of his supposed virtues.

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The Ryan-Wyden plan is real Medicare reform

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December 17, 2011

House Representative Paul Ryan (R-Wisconsin) was ripped apart by Democrat leaders over his controversial budget proposal, a serious attempt at entitlement and tax reform, earlier this year. However, now that Oregon Democrat Ron Wyden has placed his weight behind a similar proposal, real entitlement reform is within reach.

Democrat Ron Wyden (left) and Republican Paul Ryan (right) have proposed a landmark reform of Medicare.

Proposed in a jointly written Wall Street Journal opinion editorial, the Ryan-Wyden plan continues Medicare for those currently over the age of 55. However, in 2022, a “premium-support” system would kick in, granting those on Medicare the choice between government Medicare or a private plan. This system is modeled on the competitiveness of the Medicare Part D prescription drug program, which has both satisfied consumers and cost the government less than expected. Unfortunately, the Ryan-Wyden plan is not an exact replica of Paul Ryan’s earlier Medicare proposal. Instead of phasing out Medicare entirely in favor of privately-owned insurance accounts, this new proposal still keeps Medicare as an option. Besides this, however, I am highly pleased by this plan.

The Ryan-Wyden plan is crucial for two reasons. Firstly, the plan begins to unravel the massive government monopoly over our lives. By allowing Medicare recipients to choose between the government and a private insurance account, this proposal will allow Americans to wean themselves off government support. Secondly, the Ryan-Wyden plan is a bipartisan effort that has the potential to unite moderates from both parties behind serious entitlement reform. Since the plan is neither radical (as it does not eliminate Medicare) nor fiscally irresponsible, it appeals to fiscal conservatives and moderate Democrats who recognize the need to control federal spending. Although Ryan-Wyden will not garner much support among leftist Democrats who are unwilling to support entitlement reform of any kind, the proposal could get enough votes to reach President Obama’s desk.

To rein in our massive debt, our government must begin to explore serious solutions that go far beyond the Ryan-Wyden plan. However, it is said that a journey of a thousand miles begins with a single step, and in this way, Ryan-Wyden is the crucial first step on the long road of entitlement reform and debt reduction.

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So much for compromise: Dems want taxes first

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October 1, 2011

The Super-Committee

Do you remember the endless cries from Democrats during the debt ceiling debate about a lack of compromise by the GOP? I sure do, and as Democrats in the super-committee budget talks insist on tax hikes coming before meaningful spending cuts, I can’t help but think of the word “hypocrisy”.

Considering our $14 trillion mountain of debt (over 35% of which has been accumulated by the Obama administration), it is clear that Washington’s spending addiction is the primary if not the only cause of our current debt woes. It is ludicrous to suggest that talking about tax hikes should come before meaningful cuts because tax increases are an immense burden on the economy, and in our dire economic straits, such increases would be devastating for small businesses and middle-class Americans.

I think a major issue with these super-committee hearings arises in the secrecy that surrounds them. Instead of allowing these lawmakers to lock themselves into a room and debate in secret, I think these hearings should be open to both the press and the public. Congressmen should be held accountable by their constituents in an open forum where concerned Americans can at least listen and even contribute to the super-committee hearings. Public opinion is stacked against Democrats when it comes to responsible spending, and I guarantee that if a Democrat publicly suggested that revenue should be considered before meaningful cuts are placed on the table, that Democrat would have a lot to explain to his constituents.

In my opinion, a balanced budget amendment and tax cuts will solve our debt crisis. Tax cuts grow the economy and increase federal tax revenues, and a balanced budget amendment would dramatically curtail spending and force government to cut back like the many Americans that have been stricken by our current economic disaster.

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My step-by-step plan to solve the debt crisis

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July 29, 2011

We the people of the United States are in a dire situation. If our debt ceiling is reached without at least $4 trillion worth of debt reduction, we will lose our triple-A credit rating. We will not default, although initial panic in the stock and bond markets will likely lead to significant Wall Street losses, with repercussions occurring around the globe.

Compromise, at this point, is not an option. John Boehner’s compromise bill barely cuts a trillion dollars over 10 years, and does not even address the root of the problems: entitlements. Here is my step-by-step plan to solve this debt crisis.
1) Before the debt ceiling can be reached, pass a bill that freezes all spending besides Medicare/Medicaid, Social Security, military pay, bare defense spending, and interest payments on the debt. This will slow, if not stop, the outflow of borrowed cash. A provision must be included in the bill that prevents any money beyond what is allowed in it from being spent without a balanced budget and a balanced budget amendment.
2) Deep, immediate spending cuts MUST be passed. This means any government programs beyond national defense, entitlements, and crucial transportation programs must take a massive cut in funding or be eliminated entirely from the federal budget. Defense spending will be lowered to the bare minimum level required, and staffing in all federal departments (except defense) must be cut by 25%.
3) Tax code reform must occur. Look at world history, and you will see a constant trend of lower taxes leading to greater economic prosperity and, consequently, greater tax revenues for the government. Ideally, a flat tax should be instituted (around 15-20% range). The 47% (or at least most) of Americans who do not pay ANY federal income taxes should be required to pay taxes. The tax code must be simplified to eliminate ALL special tax deductions besides the charitable giving deductions. Other taxes such as payroll taxes and estate taxes must be completely eliminated from the federal tax system, leaving ONLY the income tax. A 1% federal sales tax is a viable option for revenue creation that would not cause any significant economic damage.
4) Entitlement reform must occur, and on a massive scale. Medicare/Medicaid must be privatized. Those already on the plan will be allowed to finish their lives with Medicare, but those about to enter will use the new system, which will give vouchers to upcoming seniors that allow them to purchase private insurance plans. For Social Security, the retirement age should be increased to accommodate our growing life spans. Additionally, unemployment benefits should be drastically reduced, if not eliminated. This will encourage the unemployed to find jobs and will prevent people from freeloading and depending on the government. Disabled people who cannot fulfill the duties of their employment will receive government assistance.

5) Obamacare must be repealed, as it increases the deficit by over $700 billion, if not more!

There you have it, the 5 steps to success. Read up, congressmen!

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The debt crisis and President Obama’s ever-evolving fiscal stance

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July 14, 2011

August 2nd is approaching fast, and there has been no progress on the debt limit. Washington’s Democrats are standing strong against deep spending cuts in favor of tax increases on “the wealthiest Americans” (those evil small businesses), even as the GOP, spineless as always, struggles with the political issue of even raising the debt limit at all. Even better, on Wednesday, Obama walked out of a stormy meeting with congressional leaders after a verbal altercation with Eric Cantor, who reported that Obama began to lecture him about his poor treatment of the president. If not getting a deal on the debt ceiling is as apocalyptic as the Democrats say, we are royally screwed. On that note, I will say that I am certain that Republicans will cave in and give the Democrats a debt ceiling increase, as the political and economic consequences of allowing the debt ceiling to be reached cannot be foreseen. My personal stance on the debt ceiling is that with enough cuts, we will not have to worry about hitting the debt ceiling. Defunding Obamacare, bringing stimulus money back into the treasury, and adopting Paul Ryan’s Medicare plan would go 90%, if not all of the way, to getting the United States to an overall budget surplus.

I have been intrigued by Obama’s changes in fiscal policy over the course of his leadership as a Senator and as the President. He voted in 2006 as Senator against raising the debt limit under President Bush, but is now pushing for a limit increase. Also, while only a few months ago Obama insisted that taxes not be raised, now he is pushing for tax increases along with the rest of the Democrats. Someone’s flip-flopping.
Obama has made little progress on the debt ceiling, despite the fact that he has taken a significant leadership role in the debt talks. In the words of House Speaker John Boehner, dealing with the White House has been like “dealing with Jell-o”.
Guess I better put on my shocked face…
President Obama storms out of talks
Boehner and Jell-o
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