Debt by a Million Increments
If you ask any rational person if they would rather have debt or no debt, they would say no debt.
Yet today America’s debt is growing and growing under Obama and the Democrats as it has been for decades, and it can only be seen as an individual might see his own debt rising. Because our national debt will be paid by each one of us. It is our debt. And our children’s debt and our grandchildren’s debt.
Today, the Republicans are seeking to cut just $61 billion from a $1.65 trillion deficit for this year. That is just under 4% from a catastrophic budget shortfall. And the Democrats are squealing like stuck pigs over that cut, which is less than one-half of one percent of our federal debt.
Yet the reason we have our $14 trillion national debt is because the Democrats have given it to us in a million small increments since the end of World War II. Listen to Democrat Senate majority leader Harry Reid talking about the “mean-spirited” Republican cuts in the House bill HR 1:
“H.R. 1 … eliminates the National Endowment of the Humanities, National Endowment of the Arts. These programs create jobs. The National Endowment of the Humanities is the reason we have in northern Nevada every January a cowboy poetry festival. Had that program not been around, the tens of thousands of people who come there every year would not exist.” (end of excerpt)
Yes, indeed, the Cowboy Poetry Festival. How could we do without that? Our grandchildren will want to watch videotapes of the festival as they sit in their freezing houses with no jobs because Obama and the Democrats bankrupted America funding the Cowboy Poetry Festival and endless other freeloader programs.
Here are just a few of the wasteful outlays in Obama’s 2009 stimulus according to a Summer 2010 investigation by senators McCain and Coburn:
$554,763 for the Forest Service to replace windows in a closed visitor center at Mount St. Helens; $762,372 to create “Dance Draw” interactive dance software; $62 million for a tunnel to nowhere in Pittsburgh that even Pennsylvania governor, Ed Rendell called “a tragic mistake”; $1.9 million for international ant research; $1.8 million for a road project that is threatening a pastor’s home; $308 million for a joint clean energy venture with…BP; $89,298 to replace a new sidewalk that leads to a ditch in Boynton, OK; $3.8 million for a “streetscaping” project that has reduced traffic and caused a business to fire two employees; $200,000 to help Siberian communities lobby Russian policy makers; $39.7 million to upgrade the statehouse and political offices in Topeka, KS ; $760,000 to Georgia Tech to study improvised music; $700,000 to study why monkeys respond negatively to inequity; $363,760 to help NIH promote the positive impacts of stimulus projects. (end of excerpt)
Yes, $363,760 in stimulus money to promote the positive impact of stimulus money! And millions of other outlays just like this over the decades. All paid for by the taxpayer. One by one. That is why the real revolution in America is coming from the Tea Parties.
Another recent news story says that 35% of all the income checks (called “wages and salaries”) in America today come from the government, up from 10% in 1960. This includes Social Security, Medicare, Medicaid and unemployment. And certainly some is Social Security that the recipient paid into, but still look at the percentage of people who are NOT getting their check from jobs in the wealth-producing economy but from the debt-ridden government. It is frightening.
Madeline Schnapp, director of Macroeconomic Research at TrimTabs, said “The U.S. economy has become alarmingly dependent on government stimulus. Consumption supported by wages and salaries is a much stronger foundation for economic growth than consumption based on social welfare benefits.”
Schnapp says that for the economy to get back to the pre-recession ratio of 26% of pay coming from government sources, “either wages and salaries would have to increase $2.3 trillion, or 35 percent, to $8.8 trillion, or social welfare benefits would have to decline $500 billion, or 23 percent, to $1.7 trillion,” she said.
Neither is going to happen under Obama. And even if it did, that only would reduce the figure to 26%. It needs to be reduced much further if we are to have real growth again.
Meanwhile, public employees, with a 37% unionization rate across the nation, also are being exposed for the big salary/benefit/pension advantages they have over the private sector. This represents more government debt and more taxes on the middle class.
Barbara Davis, a retiree in New Jersey says that the unionized government-employee protesters in Wisconsin and New Jersey are wrong when they claim that cuts in their packages will “hurt the middle class”. Because it is the middle class like Davis herself that is paying for those packages through ever-rising local and state taxes, along with relentlessly increasing federal taxes to fund Social Security, Medicare, Medicaid, unemployment insurance, federal salaries and all the other government expenditures that now have reached 35% of paychecks in America..
“I’m sorry, but what they’re doing is ‘telling off’ the middle class,” said Davis who is co-chairwoman of the Cherry Hill, New Jersey Tea Party. “The middle-class people don’t get all the goodies that they do.”
Davis said that she and her husband pay about $12,000 per year in taxes on the house she describes as a “tract home.” Twelve-thousand dollars! Just for property taxes!
‘For instance, most non-uniformed public employees who have worked in New Jersey for 30 years with an ending salary of $85,000 can look forward to retiring at 55 with an annual pension of about $46,000. Working until age 60 and a salary of $90,000 can bring a pension of $57,000. And many of the New Jersey‘s public-sector retirees have no or low premiums for their health insurance.
For a private-section worker who retires at 55, relying solely on a 401(k) without an employer match, it would take a $100 contribution to a plan every week for 30 years and getting an annual return over 7 percent to get to the same level of pension benefit as the public worker retiring at that age. Those benefits would run out after 25 years for the 401(k) retiree.
…The government entities spent 1.7 times as much on health care per employee-hour worked and nearly twice as much on retirement costs. Public-sector workers—who are more often represented by unions—are far more likely to have defined-benefit pensions with promises to pay for the retirees’ whole lives.’ (end of excerpt)
This is debt-creating socialism at work, dollar by dollar. And all this debt crowds out private economic growth which reduces the amount of tax money available to pay for all these salaries, pensions and frivolous programs like Harry Reid’s Cowboy Poetry Festival. It is a vicious cycle and a downward spiral.
Because as any rational person knows, debt is a dark cloud that can grow and grow. You cannot escape it. It colors your every action. And it is ruining our economy.
Please visit my website at www.nikitas3.com for more. You can read excerpts from my book, Right Is Right, which explains why only conservatism can maintain our freedom and prosperity.