I’m struck by the lack of outrage about Obama’s budget. The AIG bonuses received nonstop coverage for a week, but this budget is at least 100 times more outrageous and insulting to the American people. Obama’s budget puts us more in debt in the next five years than the cumulative debt from George Washington to G.W. Bush. The ratio of total debt to GDP is now about 40% and has been at that level for years. The rosy scenarios in Obama’s budget predicts the debt/GDP ratio will go up to 80%. The largest deficit under Bush was $454 billion in 2008–Obama’s budget will lead to annual deficits of more than 1 trillion dollars per year for the next decade. The actual deficits will be worse than that as the budget assumes government programs won’t have any cost overruns and the economy has 90’s style growth even with massive debt crowding out of the private sector and massive energy tax increases. Even the CBO estimates only include a ‘down-payment’ for health care and don’t include the ‘temporary’ increases in government programs from the stimulus that democrats intend to make permanent. Sen. Richard Shelby said that if this budget passed we would be paying over $1 billion per day just in INTEREST payments. That’s over $32 billion per month–the cost of the Iraq war was about $8 billion per month.
To put this is perspective, the government currently takes in about $2 trillion per year in tax revenue. If we have $1 trillion dollar deficits, that means everyone would have to pay 50% more in taxes to cover it. According to WSJ, if you taxed 100% of the income of everyone making over 500k in 2006 that would only net $1.3 trillion. The big spending Bush administration racked up a total of $2 trillion is deficits from 2001-2008; over the next 10 years Obama is going to add at least $10 trillion.
There are only three possible scenarios here: Obama is insane, Obama is deliberately exploiting a financial crisis to implement his far-left agenda and plans to pay for it with hyperinflation, or he actually thinks socializing medicine and implementing a massive energy tax is going to cause GDP growth to skyrocket. Most people, myself included, would reject the 1st and 3rd options as ridiculous, which means he is deliberately planning to destroy the economy with massive inflation in order to pass his idealogical agenda for reshaping America into a European-style welfare state. I don’t see any other explanation. Anyone who intentionally destroys trillions of dollars of Americans wealth must be by definition the worst white-collar crook in history; many times worse than Bernie Madoff. I do not think I’m exaggerating. If Obama is knowingly destroying trillions of dollars in wealth he is a thief and deserves to be impeached.
Newt Gingrich nailed what is happening:
“I think he’s committed to redistributing wealth in the country, creating a huge government, transferring power to a radical secular-left…I don’t think this administration is all that worried about the economy. I think they’re worried about power, and they think they’re winning because they’re reshaping the law and the structure of government in the US…they’re still confident, they’re still arrogant enough to believe they can run over the American people…the attitude of the left-wing machine in Wahsington is that they have power right now and they’re going to use that power, they’re goinna run over anyone who gets in their way, they’re going to embarrass and attack anyone who questions them, and they will tell you they’re winning.”
And Charles Krauthammer:
“What’s going on? ‘You never want a serious crisis to go to waste,’ said Chief of Staff Rahm Emanuel. ‘This crisis provides the opportunity for us to do things that you could not do before.’ Health, education and energy — worthy and weighty as they may be — are not the cause of our financial collapse. And they are not the cure. The fraudulent claim that they are both cause and cure is the rhetorical device by which an ambitious president intends to enact the most radical agenda of social transformation seen in our lifetime.”
Obama had the audacity last night to say ‘At the end of the day, the best way to bring our deficit down in the long run is not with a budget that continues the very same policies that have led us to a narrow prosperity and massive debt. It’s with a budget that leads to broad economic growth by moving from an era of borrow and spend to one where we save and invest.’ Who does this guy think he is that he can get away with this? Does he think we’re all stupid?
If I’m exaggerating I’d like to hear why.
Links to Charts/Articles: